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Govtech: what it means, who builds it and how governments buy it

Govtech is both the technology the state runs on and a market of firms that sell it. This guide sets out the definitions, the World Bank's maturity index, how governments buy from start-ups and what tends to go wrong, with every fact linked to its source.

Updated 18 October 2026. Reviewed every quarter. Every fact links to its source.

Govtech, short for government technology, is the software, data and digital infrastructure that public bodies use to run their own operations and to serve people and businesses. The word has two senses: a broad one, covering all of that technology and the reforms around it, and a narrow one, covering how governments buy new solutions from start-ups and small firms. The broad sense is the World Bank's: its GovTech programme supports the adoption of technology and use of data to enhance government effectiveness and efficiency. The narrow sense is the European Commission's, which has described govtech as the process where the public sector engages with start-ups and SMEs to procure innovative technology solutions.

This guide explains both senses, sets out how govtech differs from digital government and civic tech, and walks through the main areas, the World Bank's GovTech Maturity Index, the ways governments buy from small firms, examples from every region and the risks. It does not rank or recommend vendors.

What govtech means

In the broad sense, govtech is a reform agenda as much as a set of tools. The World Bank launched its GovTech Initiative in 2019 and defines GovTech as “a whole-of-government approach to public sector modernization that promotes simple, efficient, and transparent government, with citizens at the center of reforms”, according to its 2022 GovTech Maturity Index report. The bank's index measures four areas: core government systems and shared digital infrastructure, online public service delivery, digital citizen engagement, and GovTech enablers such as strategy, law and skills.

In the narrow sense, govtech is a market. The European Commission's 2023 definition centres on the public sector engaging with start-ups and SMEs (small and medium-sized enterprises). Poland's GovTech Polska, an advisory team to the Council of Ministers working in the Ministry of Digital Affairs, describes govtech for start-ups and SMEs as a fast-growing market with easier access to public procurement. In Lithuania, the GovTech Lab asks public institutions to set challenges and entrepreneurs to develop the solutions.

“GovTech” is also a name. The Government Technology Agency of Singapore, known as GovTech, is a statutory board under the Ministry of Digital Development and Information that supports public agencies in delivering digital services and oversees government ICT (information and communications technology) infrastructure. It created Singpass, the digital identity residents use for government and business services online. See IQGov's Singapore profile.

Govtech, digital government and civic tech: how they differ

Digital government is the goal: a state that is designed around digital services and data. IQGov's guide to digital government covers it in full. Govtech is the means and the supply side: the platforms, the systems and the teams and firms that build them. The two are measured in similar ways. The World Bank's index uses all three components of the UN E-Government Development Index (EGDI) as inputs, and in 2022 48 of the 60 countries with very high EGDI scores were also in the index's top group. IQGov's Government Index shows the EGDI for all 193 UN member states.

In this guide, civic tech means technology built by citizens and non-profit groups to improve public life, sometimes with government as a partner. Code for America calls itself the country's leading civic tech nonprofit and works by partnering with government at all levels. In the UK, mySociety, a charity established in 2003, runs tools such as FixMyStreet, TheyWorkForYou and WhatDoTheyKnow. The World Bank's 2025 index found that civic tech approaches generally lag behind other GovTech focus areas. For an example of civic technologists working inside a state programme, see IQGov's report on Maryland's Medicaid redesign.

What govtech covers

Most govtech falls into a handful of areas. Each item below gives one real, sourced example.

The World Bank GovTech Maturity Index

The GovTech Maturity Index (GTMI) is the World Bank's measure of govtech across countries. It is a composite index that uses 48 key indicators, including eight external ones, across four focus areas in 198 economies. The four areas carry 17, nine, six and 16 indicators respectively: core government systems, public service delivery, digital citizen engagement and GovTech enablers. The World Bank stresses that the GTMI is not intended to create a ranking or to assess a country's performance, but to provide a baseline and show where to improve.

The first edition was launched in 2021 on 2020 data collected remotely from government websites. The 2022 update relied mainly on an online survey: 135 economies submitted data directly and data for the other 63 were collected remotely. The bank warns that the 2022 version is not directly comparable with the 2020 version because of new indicators.

The group definitions, counts and averages above come from tables 2.3 and 2.4 and the main messages of the 2022 report; the World Bank's 2022 index page confirms that all 198 economies are grouped from A to D by average score. Countries in each group in 2022 included, according to the report's table 3.2:

  • Group A: Brazil, Denmark, Estonia, India, the Republic of Korea, Singapore, the United Arab Emirates, the United Kingdom and the United States, joined in 2022 by economies including Bangladesh, Egypt, Saudi Arabia, Tanzania, Uganda and Ukraine.
  • Group B: Armenia, China, Ghana, Kenya, Morocco, the Philippines, Poland, Rwanda and Vietnam, joined by economies including Benin, Cambodia, Ethiopia, Fiji and Nigeria.
  • Group C: Angola, Bosnia and Herzegovina, Lebanon, Madagascar, Papua New Guinea, Senegal and Zimbabwe; Nepal moved down to this group.
  • Group D: Chad, Iraq, Kiribati, Liberia, South Sudan and Yemen.

Between 2020 and 2022, 52 economies moved up one group, 10 moved down and 136 stayed where they were. Income matters: high-income and upper-middle-income economies made up 58 per cent and 26 per cent of Group A. One indicator asks directly about start-ups: whether there is a government policy to support GovTech start-ups and private sector investment. In 2022, 101 economies reported such a policy, but only 40 had a procurement policy prioritising start-ups or SMEs.

The 2025 edition covers 197 economies, with survey answers from 158 and public data for 39. According to the World Bank's summary, 41 per cent of economies are now in Group A, up from about 35 per cent in 2022; about 70 per cent of Europe and Central Asia is in Group A, against 13 per cent in Africa. The country examples above are from the 2022 report, the latest edition whose full group list IQGov has checked.

Who supplies government technology

Government technology comes from several kinds of supplier. One is the state itself: in-house teams such as the UK Government Digital Service, which built GOV.UK Pay, or HM Courts & Tribunals Service, which designed and developed Common Platform. Others include the start-ups and SMEs that the European Commission's definition puts at the centre, and civic tech non-profits such as Code for America. The UK National Audit Office lists engaging commercial partners as one of six areas that decision-makers need to get right to give digital change the best chance of success.

Governments have built several routes for buying from smaller firms:

Govtech around the world

Risks and what goes wrong

Large IT projects fail often. In 2021 the UK National Audit Office found that despite 25 years of government strategies there is a consistent pattern of underperformance, often because decision makers fix on technology solutions before the basics are thought through. In the US, the Government Accountability Office says the federal government invests more than $100 billion a year on IT, mostly on running existing systems, that investments “too frequently fail or run over budget and over schedule”, and that 463 of its recommendations had not been implemented as of January 2025. IQGov's analysis Breaking the megaproject looks at two British cases.

Vendor lock-in. The UK competition regulator's cloud services market investigation, which published its final decision on 31 July 2025, examined egress fees and licensing, and recommended that the regulator use its digital markets powers to consider strategic market status for Microsoft and Amazon Web Services. Some governments have open-source policies: the World Bank index asks whether a government has an open-source software policy for the public sector. See IQGov's Who owns the government cloud? and The state as a platform.

Barriers for small firms. Most countries do not tilt procurement towards newcomers: in 2022 only 40 economies had a procurement policy prioritising start-ups or SMEs, and the World Bank's conclusions called for more incentives to GovTech start-ups and SMEs. Transparency is thin too: only about 25 per cent of dedicated govtech entities disclose information about their governance and performance.

Accessibility. Public services must work for disabled people. EU law requires public sector websites and apps to be made perceivable, operable, understandable and robust, and Section 508 in the US applies whenever federal agencies develop, procure, maintain, or use information technology, so buying a product in does not remove the duty. See IQGov's report on the US Web Design System.

Weak foundations. The 2025 index found that nearly half of economies still lack fully implemented cloud and interoperability backbones, and that about four in 10 still lack an operational one-stop service portal. On AI in software delivery, see IQGov's report on the US immigration agency's agentic software factory.

Questions

What is govtech in simple terms?
Govtech is the technology governments use to run themselves and serve the public, from digital identity to tax systems. In the European sense it also means public bodies buying innovative solutions from start-ups and SMEs.
What are govtech companies?
They are firms that sell technology to public bodies, including the start-ups and SMEs at the centre of the European definition. Marketplaces such as the UK's G-Cloud 14, which runs until 28 October 2026, list over 4,000 suppliers. IQGov does not rank or recommend vendors.
How can a govtech start-up sell to government?
Through open marketplaces, challenge-based competitions such as GovTech Polska's, innovation partnerships such as Luxembourg's GovTech Lab, or labs such as Lithuania's GovTech Lab.
What is the GovTech Maturity Index?
A World Bank index that measures four govtech focus areas with 48 indicators and sorts economies into groups A to D. It is not intended to create a ranking. The latest edition is the 2025 update, covering 197 economies.
What is GovTech Singapore?
The Government Technology Agency of Singapore, a statutory board under the Ministry of Digital Development and Information. It supports public agencies in delivering digital services and created Singpass.
Is govtech the same as civic tech?
No. Govtech is technology for and by government; civic tech is built by citizens and non-profits such as mySociety and Code for America, sometimes with government as a partner.

IQGov reporting on this