Our team members were delighted to attend
Intermedium’s sold-out Engaging with Agencies: The Shape of the Federal Market in 2025 breakfast briefing. The event featured f key insights into the federal government’s ICT and digital strategy, along with discussions on budget allocations, procurement trends, and the evolving priorities of major agencies. Here are the key takeaways our team came away with.
One of the biggest takeaways was the $1.47 billion allocation to ICT in December’s Mid-Year Economic and Fiscal Outlook (MYEFO). This huge investment underscores the government’s commitment to digital transformation and maintaining core services. However, sustaining existing activity will require an additional $1 billion in new funding, highlighting potential challenges for both government agencies and industry suppliers.
Key areas of investment include:
Lucy Poole, General Manager at the Digital Transformation Agency (DTA), shared her thought-provoking insights into the agency’s whole-of-government approach. A major priority for 2025 is enhancing digital investment planning to ensure agencies can deliver scalable and cost-effective ICT projects. Despite the 'do more with less' mantra dominating discussions, Poole indicated there are still opportunities for large-scale projects, particularly in AI and workforce mobility.
A panel discussion featuring key government leaders explored data agility, accessibility, and security. Speakers emphasised the growing demand for strong data infrastructure to support government services, with AI and advanced analytics (unsurprisingly) playing an increasing role in decision-making. The conversation highlighted:
Cloud adoption is accelerating, with Defence, DTA, Services Australia, DOHA and ATO leading the charge amounting to $1208.9 million. Whilst Amazon Web Services, Data#3, Salesforce ServiceNow and Dynatrace are among the top suppliers amounting to $933.3 million.
AI implementation is still in its early stages, with policies and frameworks under development to guide agency adoption. Cybersecurity remains a major funding priority, with significant investments in fraud prevention, secure internet gateways, and compliance-driven initiatives.
Intermedium’s briefing provided a comprehensive look at the Federal ICT landscape, reinforcing the importance of strategic engagement with government agencies. For industry leaders, staying ahead of procurement trends and aligning offerings with government priorities will be key to success in 2025 and beyond. Thanks to Intermedium for setting the stage for these important discussions. We forward to continuing these conversations as we navigate the evolving digital government landscape.