# Local Governments Modernize Technology

An Ernst & Young survey of 200 U.S. state and local officials found that technology modernization is generating positive returns for many governments, but legacy-system costs, staffing constraints, and uncertain funding continue to limit progress. For procurement professionals and contractors, the findings point to potential demand for modernization road maps, legacy-system replacement and sustainment, workforce support, and AI governance and readiness; the survey signals market needs, not a specific solicitation or award.

- Contractors can align offerings with the needs identified in the survey, including legacy-system replacement and ongoing sustainment, modernization planning, and workforce support.
- Agencies facing funding uncertainty and staffing constraints may need solutions that address implementation capacity as well as technology costs.
- Companies offering AI services can assess how their capabilities support government AI governance and readiness, without treating the survey as a formal procurement opportunity.

**Jurisdictions:** sled
**Industries:** Information Technology
**Topics:** Digital Infrastructure, Artificial Intelligence
**Published:** November 12, 2026

### Sources
- [Tech upgrades boost ROI for local governments: report](https://www.yahoo.com/news/us/articles/technology-upgrades-yield-positive-roi-153654535.html) - Yahoo