Federal software development is at a crucial inflection point. According to recent findings, only 38% of Federal civilian IT decision-makers rate their agency’s software development security as excellent, with even fewer giving top marks for efficiency (37%) and innovation capabilities (28%). Agencies face mounting pressure to modernize – or risk falling behind. While there are still clouds of uncertainty around how these tools work and emerging security vulnerabilities, citizens and other stakeholders expect federal leaders to mirror private sector progress.
Many federal IT leaders recognize this burgeoning opportunity, with 75% reporting that adopting modern software practices is critical to mission success. To illustrate the current challenge, it’s helpful to think of the difference between highways and backroads. Highways are predictable, allowing drivers to move with confidence and speed. Backroads, however, have hidden and unexpected obstacles. Federal IT teams need predictable highways, but too many of them are navigating the backroads. Establishing proper guardrails for this new technology terrain will put them on the highway and allow them to execute faster and with more confidence.
Amid this pivotal time, three strategies are ripe to transform federal software development and bolster mission success: AI-assisted development, cloud-native platforms, and strategic open-source integration.
AI-Assisted Development: Augmenting Human Expertise
Today, despite its potential, only 46% of agency IT leaders consider themselves core users of AI-assisted software development. The first step toward embracing AI-assisted development is simple: Experimentation. Encouraging hands-on experience with these tools helps teams understand their capabilities and limitations. However, the human component remains paramount: Experienced developers should guide this exploration phase, ensuring these tools enhance rather than replace human judgment.
When used properly, AI-accelerated tools can turbocharge efficiency, with a handful already making a significant impact in federal environments. Tools like GitHub Copilot and Amazon Anthropic Claude help write code, improve pre-existing code quality, and speed up development. A growing number of developers are finding these tools useful beyond coding and across the entirety of the software development lifecycle. One prime example is Microsoft Copilot, which generates user stories and other task planning insights – helping teams accomplish more in less time. In fact, federal IT decision-makers leveraging AI-assisted software development tools report project timeline reductions by at least 30%.
Some agencies remain hesitant to embrace these technologies and this necessary exploration phase, due to security concerns. This apprehension is understandable but must be balanced against the competitive disadvantage of inaction, as citizens will increasingly expect the speed and responsiveness that AI-assisted development tools enable.
IT leaders should strike the right balance between automated processes and human creativity. There’s a sweet spot that capitalizes on AI’s potential, while simultaneously employing the right talent, expertise, and training. Agencies that do so will accelerate project timelines, reduce manual errors, and free up resources to focus on mission-driven work.
Cloud-Native Platforms: Reducing Complexity
Cloud-native architecture platforms are another imperative tool, allowing developers to focus on delivering value rather than managing underlying systems by isolating complexity and providing common infrastructure for teams to build upon. Nearly all Federal civilian agencies, 99%, report measurable improvements using cloud-native development, including quality, scalability, and security. It’s important to point out that lack of a platform strategy can yield the opposite results.
The Defense Department’s Platform One shows the power of this platform approach, enabling rapid delivery infrastructure that other agencies can learn from. The advantages are clear: Faster deployment, enhanced security, lower maintenance costs, and more responsive user experiences – all of which boost mission-critical operations.
Other key benefits include enabling faster innovation, leaner teams, and freeing up time wasted by technological underpinnings. Platforms, combined with cloud-native development and delivery practices, even enable A/B testing of different interfaces and workflows – allowing agencies to make data-driven decisions about user experience improvements.
While only two-fifths of Federal IT decision-makers say they are prioritizing cloud solutions for new projects, an overwhelming 99% are taking steps to expand their use of cloud-native software. Moving forward, agencies should focus on platforms that offer scalability, flexibility, and resilience – while continuing to educate their workforce on the security benefits of the cloud.
Strategic Open-Source Integration: Driving Collaboration & Customization
Strategic open-source integration is a third tactic on the rise, with 98% of agencies taking steps to adopt or expand their use. The impact is notable: Core open source users are nearly three times more likely than lesser users to rate their agency’s software development efficiency as an “A” (61% versus 23%).
This approach leverages collective innovation, while reducing duplication of efforts – offering agencies a cost-effective way to customize and adapt software to meet specific mission needs and requirements. In fact, 66% of IT leaders have reported seeing increased control and customization through open-source software, which creates an “internal open source” or “innersource” strategy within and across the government more broadly.
For a key example of this transformation potential, look no further than the Centers for Medicare & Medicaid Services (CMS). By implementing a cloud-based application using open-source software – the Internet Quality Improvement and Evaluation System (iQIES) – CMS was able to reach their mission of improving the quality of patient care with a cost-efficient, custom-built, and purpose-driven experience. Coming together quickly and in a way that was well-tailored to CMS’ needs, this application continues to support thousands of healthcare providers across all 50 states and territories.
Despite the benefits, it’s important to note that IT leaders have to be extra mindful of security considerations and monitor inherent vulnerabilities – particularly versions of these open source tools, like we learned from the Log4j vulnerability. Overall, this requires a mindset shift: IT leaders have to understand the differences required for open source, maintain Software Bill of Materials (SBOMs), and be ready to address any potential weaknesses. However, the alternative – building everything from scratch – is increasingly impractical amid the pace of technological change today.
Navigating the Road Ahead – Starting Small for Big Impact
The federal software development journey will have hurdles, but as agencies become familiar with the route and its stops, the path forward becomes more navigable. People and processes are also synergistic with these technology changes. Agencies are not going to fully be able to capitalize on these technologies without thinking about the processes behind them and how they might need to adapt. Similarly, IT leaders must rethink team composition, putting the right expertise in place to get the most out of these technologies.
The stakes are high, but so are the rewards. Agencies that successfully modernize their approach will deliver better experiences for citizens, achieve mission objectives more efficiently, and build more resilient, secure systems. In fact, IT leaders indicate these three modern software development strategies are improving operational efficiency by 66%, data access by 65%, cybersecurity and data protection by 64%, and speed of citizen services by 51%.
The time to begin this transformation is now: Federal IT leaders should start with small experiments that build confidence and demonstrate value, and then scale successful strategies. By embracing AI-assisted development, cloud-native platforms, and open-source integration, agencies can revamp their approach to software development and stay ahead of today’s rapidly evolving digital landscape.
Trent Hone is vice president of technology and product innovation at ICF. He has more than 25 years of technology and management experience.
