The Hidden Costs of Doing Nothing: Why Delaying IT Upgrades Can Hurt Your Community

Our Work | Tech

July 21, 2025

In the public sector, IT projects often face delays – not because they lack value, but because they compete with urgent priorities, tight budgets, and complex procurement processes. Municipal leaders are tasked with balancing immediate needs, such as infrastructure repairs, emergency services, and housing, and IT upgrades can often feel like something that can wait.

But the truth is, doing nothing comes at a cost – and often, that cost is far greater than the investment required to modernize.

This topic came up in our recent webinar on cooperative purchasing and IT procurement. Many municipalities shared a common concern: “We know we need to modernize, but we’re stuck in the process.” If that sounds familiar, this post is for you.

Why IT Projects Get Delayed

Let’s start with the common roadblocks:

Lengthy RFP processes: The average public sector procurement cycle in Canada can take 6–18 months.

Budget constraints: 74% of Canadian municipalities report that budget limitations are a top barrier to digital transformation.

Fear of disruption: Many municipalities worry about downtime or staff resistance during implementation.

Limited internal capacity: Smaller municipalities often lack dedicated IT teams.

Council hesitation: Without a clear business case, it’s hard to get buy-in for projects that aren’t immediately visible to the public.

These are real challenges, but the cost of inaction is often higher.

The Hidden Costs of Doing Nothing

Rising Maintenance Costs

Legacy systems are expensive to maintain. According to the Canadian Centre for Cyber Security, outdated software is one of the top vulnerabilities exploited in cyberattacks. Municipalities often spend more on patching and maintaining old systems than they would on modern replacements.

A 2022 study by Deloitte found that organizations maintaining legacy systems spend up to 60% of their IT budgets on upkeep. This leaves little room for innovation.

Cybersecurity Risks

Cyberattacks on municipalities are rising. In 2023 alone, over 30 Canadian municipalities reported ransomware incidents, including Westmount, ON and St. Marys, ON. The average cost of recovery from a ransomware attack in the public sector is estimated at CAD 2.3 million. Delaying upgrades leaves your systems – and your residents’ data – exposed.

Staff Inefficiency and Burnout

Manual processes and outdated tools slow down service delivery and frustrate staff. According to a 2021 survey by the Public Sector Network, 68% of municipal employees said their current systems hinder productivity.

Eroding Public Trust

Citizens expect digital services. A 2022 Accenture report found that 85% of Canadians expect the same level of digital service from government as they do from private companies. When municipalities can’t deliver, it reflects poorly on leadership.

The ROI of Modernization

Modernizing IT isn’t just about avoiding risk – it’s about creating value:

Cloud-based systems can reduce infrastructure costs by up to 30%.

Automation can cut administrative workloads by 20–40%.

Digital service portals can reduce call volumes and improve citizen satisfaction.

Take Action Now

It’s clear that delays in adopting new technologies can hurt your organization and your community. How can you get started?

Start small: Focus on one high-impact area like permitting or records management.

Use cooperative purchasing: Programs like Canoe help you bypass lengthy RFPs and access pre-vetted vendors like Elantis.

Build a business case: Use real data and peer examples to show ROI.

Engage council early: Share the risks of inaction and the benefits of moving forward.

Delaying IT upgrades may feel like the safe choice, but in reality, it’s often the most expensive one. The longer you wait, the more you pay in hidden costs: inefficiency, risk, and missed opportunity.

At Elantis, we help municipalities modernize with confidence. From Microsoft 365 migration to digital service platforms, we bring deep public sector experience and a collaborative approach to every project.

Let’s talk about how to move forward – even if you’re starting small.

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