Technology has officially been introduced into people's daily lives and, from now on, there is no turning back. In the midst of so many transformations, the only path is to accept and, preferably, adopt technological methods so they can help solve problems and automate daily processes.

As a consequence of the frantic modernization movement, several companies have emerged with the mission of developing or improving business models, such as startups, fintechs, edtechs, and Govtechs – which are the theme of today's article.

In short, Govtechs are organizations that promote the introduction of public management into the new modern structure. In this revolutionary scenario, besides users and consumers, the Government also becomes a client of companies able to serve the sector.

Want to know more about Govtechs? Then, continue reading and check out the compilation of information that the CodeBlog team has prepared for you.

The context of Govtechs

It is undeniable that the path of digital transformation in the corporate universe was initially paved by technology-focused startups - young companies that spread inputs and innovative, disruptive, and intelligent solutions to help entrepreneurs achieve a more modern structure in the market and, consequently, facilitate the daily lives of consumers.

Next, the Legal Framework for Startups emerged, which undoubtedly also gave a "helping hand" to the arrival of govtechs.

Complementary Law No. 182/2021 of June 1, 2021, established the legal framework for startups and innovative entrepreneurship. Among the law's objectives are the presentation of measures to foster the business environment and increase the supply of capital for investment in innovative entrepreneurship.

In fact, the creation of the law highlighted the necessary recognition for the development of this innovative culture and formalized numerous elements already present in legislation to simplify the reality and operations of startups, such as, for example, establishing guidelines for contracting between public and private agents, with the determination of stages in the startup contracting process.

In short, the Legal Framework contributed to the general improvement of the business environment for startups, supported the creation of innovative companies, promoted an increase in the supply of capital for investments, and provided greater legal certainty for entrepreneurs and investors. Without a doubt, all of this also facilitated the contracting of startups by the Public Administration.

Govtechs and the future of technology

Like any project of a transformative nature, the new technology promotes the integration of the government area into a scenario that moves along with the pace of science.

After all, today, it is clear how much people are being driven by the comfort of machines, which not only teach, but also offer immediate answers in just a few clicks.

On the other hand, bodies with heavier demands (such as government organizations) still suffer from slowness in their systems and processes, preventing them from establishing a closer relationship with the individuals who depend on their services.

In this way, Govtechs step in to reduce unnecessary bureaucracy and simplify legal and/or judicial processes.

However, for this adaptation to happen assertively, it is essential that leaders prepare their teams to use and master the platform functionalities. After all, only with prepared and willing professionals will it be possible to bring about a digital country.

What is needed for a company to be considered a Govtech?

To actually become a Govtech, a company must have the Govtech seal from BrazilLAB, the first innovation hub for startups, which helps connect entrepreneurs and the Public Power, collaborating with training and enabling the service of such agents.

The verification covers companies with an adequate structure to sell innovative solutions and trends to public bodies.

Changes brought by Govtechs

According to data from BrazilLAB itself, the Government reduces the costs of its processes by up to 97% when it starts adopting technological and disruptive solutions. This percentage has a direct impact on the country's economic health.

For this reason, Govtechs act in favor of society, providing innovative solutions to reshape the government structure and simplify citizens' lives.

Another important point is the distance between public bodies and society - considering that traditional means do not allow for closeness between public management and individuals – which weakens assertive administration and social inclusion in the public environment.

In this scenario, Govtechs come with the proposal of democratizing technology and, together with accessibility, boosting agile access to information and communication.

In practice, what changes for the citizen?

Although there are already numerous digital platforms provided by different public sectors focused on simplifying processes, the fact is that they contain several steps and stages.

This indicates that current programs are not intuitive enough for citizens to ensure convenient and bureaucracy-free self-service.

Startups go in the opposite direction of this scenario, as they prioritize total transparency with the population and request that any and all processes are properly safeguarded by the responsible bodies.

In this sense, it is also possible to mention social equality. This is because GovTechs consider that unifying internet access, reducing data service costs, and welcoming everyone into the digital universe is also a government responsibility.

That is, they involve a new culture, fostered by new forms of communication, based on the use of technology in favor of good systematic development and the preparation of the new generation with digital education, taking into account that, in the future, machines will be the main source of convenience, autonomy, and monetization.

Want to know more about Govtechs, how they can transform the relationship between government and citizens, and revolutionize the social, economic, and educational context?

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Warm regards and see you in the next post!