The new era of state IT: Innovation, interoperability, and cross-agency solutions

State governments across the U.S. are stepping up to deliver smarter services and take on bigger roles as federal priorities shift. A recent White House executive order puts state and local leaders at the forefront of driving preparedness, infrastructure upgrades, and resilience. From cyberattacks to natural disasters, local governments are leading the charge on risk-informed planning and making every dollar work harder. The result? A wave of innovation, cross-agency teamwork, and bold new solutions reshaping how governments serve their people.

Despite aging systems and limited staff, state agencies are pulling off impressive modernization—especially when services must span departments and platforms. What looks seamless to the public often demands tight coordination and deep technical know-how.

One reason agencies are making real progress is their commitment to interoperability, which ensures systems and tools can connect and work together, whether they’re government-built, open-source, or commercial. Interoperability gives states the freedom to innovate by experimenting with emerging technologies, piloting new approaches, and collaborating across agencies and with research institutions. It empowers teams to choose the right solutions for their needs, adapt quickly as priorities shift, and avoid being locked into a single vendor. Most importantly, it lays the foundation for agile, future-ready government systems that can evolve alongside citizen expectations.

In this blog, we explore how states like North Carolina are making the improbable look routine: staying agile with data-driven decisions, upskilling their workforce, investing in innovative solutions, and telling compelling stories that rally support.

Smarter investments through interoperability

With tax cuts reducing North Carolina’s revenue for the next few years, state IT leaders are not defending costs during the tight budget cycle. They’re focused on delivering value. At the North Carolina IT Leadership Forum, leaders highlighted planned investments in shared services, exploring broadband-as-a-service options, and stretching every dollar through smarter, more connected systems. They center their decisions on one question: “How does this investment improve their citizens’ lives or save taxpayers money?”

Interoperability is key. When systems connect, states move faster and smarter by unlocking innovation, partnering across sectors, and streamlining operations. Leaders can compare tools, cut waste, and automate work across departments, driving measurable gains in cost savings, faster rollouts, and better services.

North Carolina’s NCCARE360 is a standout example. This digital referral platform connects health care providers and community groups to address social needs like food, housing, and transportation. By integrating services statewide, it ensured that 75% of referrals resulted in clients receiving the help they needed—far above typical rates.

To make sure the platform launched without delays or disruption to services, the Department of Health and Human Services switched from a complex open-source tool to a low-code, cutting regression testing time by 30%, saving 40 hours per release, and enabling non-developers to support QA. Together, these efforts show how interoperability delivers faster, lower-cost solutions that make a real difference for North Carolinians.

Whether in a budget shortfall or a surplus, interoperability helps states spend smarter, innovate more efficiently, and deliver meaningful results for citizens.

Building a modern, agile workforce

Every IT modernization effort depends on two things: the technology and the people behind it. As systems grow more connected and automation takes on routine work, the roles and expectations of public sector IT teams are evolving fast.

Interoperability is a catalyst. When systems talk to each other, staff spend less time on manual workarounds and more time on high-value tasks. It fosters collaboration across agencies, encourages teams to co-create solutions, and allows them to tap into external research hubs and innovation centers. It reduces employee burnout, improves retention, and frees up teams to focus on strategy. Automation accelerates this shift by handling repetitive tasks like ticket routing and data entry so people can step into more strategic roles. With the proper preparation, this isn’t displacement. It’s growth.

North Carolina is already taking steps: investing in talent retention, expanding partnerships with technical colleges, and encouraging staff to engage with industry leaders. But these benefits don’t happen by default. Leaders need to prepare now by building clear career paths and keeping the talent pipeline strong.

Telling the right story to justify change

Every dollar counts in today’s government budgets—and every investment needs a strong, citizen-focused story behind it. In a climate of increased scrutiny, IT leaders must do more than propose new tools—they must make the case for why those tools matter to the people they serve.

That means leading with impact. What difference will this make for citizens? How does it reduce risk, speed up delivery, or improve access to critical services? How does an innovative solution deliver measurable benefits for citizens? These are the questions that resonate with executive decision-makers—and the ones that ultimately determine whether funding moves forward.

North Carolina CIO Teena Piccione emphasized that success hinges on telling that story clearly. If a proposal doesn’t show how it saves money or improves its citizens’ lives, it’s not going anywhere.

This is where interoperability and automation play a critical role. Integrated platforms make it easier to connect investment to impact—to show how faster testing, smoother workflows, and smarter systems create better outcomes across agencies. They also help future-proof that impact, ensuring the technology can scale and adapt as citizen needs evolve. By showcasing how collaborative solutions reduce risk and deliver results, IT leaders can rally support across agencies and political lines.

The best stories don’t just explain: They inspire. When IT leaders tie their vision to real-world benefits, they build trust, unlock funding, and make transformation feel not just possible, but necessary.

Public-sector IT teams work around the clock to keep services running—often with fewer resources than their private-sector peers. Interoperable systems and automated testing are helping states like North Carolina change that story. This is what modern government looks like: lean, innovative, responsive, and built to serve.

Explore how innovative interoperable platforms are transforming state government IT.