Report 09 Jan 2026

Public Sector - InSight Analysis - Italy

This InSight Analysis provides a detailed overview of the software and IT services market in the Italian public sector, highlighting the key drivers and obstacles to IT investments, the positioning of major vendors, and medium-term investment trends.

In 2024 and 2025, digital transformation remained a core strategic priority for the Italian public sector, driven by an increasingly integrated framework of national regulations, European directives, and exceptional funding opportunities. The PNRR, although not the only financing instrument, served as the primary accelerator, supporting cloud adoption, interoperability, digital identity, and AI-related initiatives.

This evolving ecosystem has enabled advancements in cloud migration, data exchange through the PDND, development of digital public services, and expansion of digital identities (SPID, CIE, ANPR). At the same time, cybersecurity remained a critical issue, requiring structural improvements and stronger coordination with the National Cybersecurity Agency. The emergence of GenAI prompted the development of a national bill promoting the responsible and human-centric use of AI in public administration.

PAC’s 2025 survey of 70 public bodies confirms these priorities. The primary investment areas remain e-government services, cybersecurity, cloud computing, big data, and AI. Public institutions are expanding their use of multichannel communication tools, integrating services into the IO App, and adopting CRM platforms. Cloud migration is accelerating, though hindered by legacy systems and cost constraints. Data strategies are advancing unevenly, with regions and central bodies more mature than municipalities, while data quality remains a widespread obstacle.

AI adoption is still in the early stages, with central administration leading the way in strategy development, governance models, and trials. Use cases focus on automation, citizen-facing services, and advanced analytics. Looking ahead, the key challenge will be transforming pilot projects into scalable, sustainable solutions, supported by stronger skills, governance, and interoperable data ecosystems, to ensure that the extraordinary momentum created by the PNRR produces lasting structural change.

 

Recommended advisory: PAC Leadership Session – Agentic AI Adoption – Opportunities and Challenges