ÂÜÀòÊÓƵ

In today's public sector and regulated industries, a perfect storm is brewing. Healthcare providers are drowning in manual compliance checks while trying to prioritize patient care. State and local government agencies struggle with outdated systems that fail to meet modern security mandates. Higher education institutions wade through month-long payment processing cycles. Meanwhile, the aerospace, defense, and government contracting and energy and utilities industries face mounting pressure to track sustainability metrics with systems that weren't built for the task.

These challenges, revealed in recent research from Wakefield Research, paint a stark picture of the public sector's travel and expense (T&E) management crisis. The numbers tell a troubling story:

• 29% of healthcare organizations still rely on manual data entry for expense management
• Higher education institutions spend a staggering 64 days processing vendor payments
• 38% of state and local government T&E solutions fail to meet current regulatory requirements
• 99% of aerospace and defense contractors must comply with security mandates, yet nearly a third of their systems fall short
• 100% of energy and utilities organizations face new security mandates, but 34% acknowledge their current solutions are inadequate

As regulatory demands intensify and budgets tighten, these five critical sectors are reaching a breaking point. However, the research also reveals a silver lining: a revolution in T&E management is underway, with organizations discovering how modern solutions can transform these challenges into opportunities for operational excellence.

Healthcare: When Administrative Burden Threatens Patient Care

The stakes couldn't be higher in healthcare, where every minute spent on manual data entry is a minute away from patient care. The situation has become critical: 29% of healthcare leaders report being trapped in a cycle of manual data entry, while 28% struggle with systems that operate in silos, disconnected from vital internal business functions.

The pressure for change is mounting. An overwhelming 85% of healthcare leaders are now actively seeking modern T&E solutions, driven by clear organizational priorities:

• 46% seek automated internal compliance checks
• 34% aim to reduce administrative tasks through automation
• 40% prioritize user-friendly experiences
• 44% plan to implement cloud-based platforms

But perhaps most telling is the industry's push toward sustainability, with 95% of organizations following environmental guidelines. One-third of leaders now rank sustainability initiatives among their top priorities, seeking systems that can track and report environmental impact alongside financial data.

It¡¯s clear that the future of healthcare administration lies in automation. With 40% of leaders prioritizing user-friendly experiences and 44% pushing for cloud-based platforms, the focus is clear: free up medical professionals to do what they do best ¨C care for patients.

Higher Education: Breaking Free from Administrative Gridlock

In the halls of academia, a different crisis looms. The numbers are staggering: 64 days to process vendor payments and over 37% of expense reports requiring audit before payment. For institutions already struggling with tight budgets, these inefficiencies aren't just inconvenient ¨C they're unsustainable.

The response has been decisive: 83% of higher education leaders are preparing to invest in new T&E solutions, while 60% are simultaneously eyeing AP system improvements. Their wish list reveals the depth of current challenges:

• 48% demand seamless integration with existing finance systems
• 46% need automated compliance checks
• 48% require travel pre-approval features to maintain control over spending

The fight against fraud, waste, and abuse (FW&A) has become a rallying cry, with 45% of leaders citing it as their primary motivation for change. Meanwhile, 39% are laser-focused on automating payment verification, recognizing it as the key to breaking the cycle of payment delays.

Higher education institutions aren't just seeking faster processes ¨C they're pursuing a fundamental transformation in how they manage resources and support their academic mission. With 60% also planning AP system improvements, the higher education sector is positioning itself for a more efficient, automated future.

State and Local Government: The Compliance Countdown

For state and local government agencies, the writing is on the wall: 38% of current T&E solutions fail to meet regulatory requirements, creating an urgent need for modernization. The response has been swift, with 75% of leaders planning system updates within the year.

The pressure points are clear:

• 48% of leaders want to make compliance less burdensome
• 84% must follow strict sustainability guidelines
• 47% are still trapped in manual data entry processes
• 40% need better sustainability tracking capabilities

State and local government agencies are facing a perfect storm of regulatory demands and operational inefficiencies. The push for modern solutions isn't just about compliance ¨C it's about fundamentally transforming how public sector organizations operate.

Aerospace, Defense, and Government Contracting: The Security Imperative

In a sector where security isn't just important ¨C it's everything ¨C the current state of T&E management is particularly troubling. A whopping 99% of aerospace, defense, and government contracting organizations face strict security mandates, yet 29% of current solutions fall short of requirements. The response? Two-thirds of leaders are mobilizing for change.

The priorities reflect the sector's unique challenges:

• 45% need more insightful data and reporting capabilities
• 38% are focused on reducing administrative burden through automation
• 38% prioritize preventing fraud, waste, and abuse
• 36% require robust duty-of-care measures for employee safety

Beyond operational compliance, environmental responsibility has emerged as another critical mandate for the sector. With 97% of aerospace, defense, and government contracting organizations following sustainability guidelines but 28% of current systems unable to track this data, the need for modernization has never been more urgent.

Energy and Utilities: Powering Through Compliance and Sustainability Demands

In the energy and utilities sector, a shift is underway. The numbers tell a compelling story: 100% of leaders face new security mandates within the next two years, yet one-third of their current systems already fail to meet existing requirements. This gap between capability and compliance has created an unprecedented push for modernization.

The research reveals a sector grappling with multiple pressures: while every organization must meet security mandates, 34% acknowledge their current solutions fall short. Meanwhile, sustainability has emerged as a critical priority, with 41% of leaders focused on supporting environmental initiatives through updated T&E solutions.

The response has been decisive: 80% of organizations are planning investments in new or updated technology solutions. Their priorities reflect the complex challenges ahead:

• Strengthening compliance tracking and reporting capabilities
• Supporting growing sustainability initiatives
• Improving user experience for employees across varying digital skill levels
• Integrating seamlessly with finance, ERP, and procurement systems

The energy and utilities sector isn't just upgrading systems ¨C it's preparing for a future where compliance, sustainability, and operational efficiency are inseparable. With 47% of leaders prioritizing user-friendly experiences, the focus is clear: create systems that can meet today's demands while building foundations for tomorrow's challenges.

The Path Forward: From Crisis to Opportunity

Across these five critical sectors, the message is clear: the status quo is no longer sustainable. But within this crisis lies opportunity. Modern, cloud-based solutions offer a path to not just survive but thrive in an increasingly complex regulatory landscape.

The transformation is already underway. Organizations are moving beyond compliance to embrace solutions that offer:

• Automated workflows that free up staff for higher-value work
• Integrated systems that break down data silos
• Robust reporting capabilities that turn data into insights
• Sustainability tracking that meets growing environmental mandates

The public sector stands at a crossroads. As the Wakefield Research reveals, those who embrace modern T&E solutions now won't just solve today's challenges ¨C they'll be better positioned to meet tomorrow's demands. The question isn't whether to transform, but how quickly organizations can adapt to this new reality.

For sector-specific details and complete findings, explore the Wakefield Research report collection for the public sector:

• Balancing Act: Healthcare Looks to Technology to Focus Less on Compliance, More on Patient Care
• Future-Ready: Higher Education and Research Centers Look to Technology to Control Expenses, Accelerate Innovation
• The Compliance Conundrum: State and Local Governments¡¯ Future Depends on Technology
• ?As Aerospace, Defense, & Government Contractors Seek Spend Transparency, Technology Upgrades Will Be Key
• Energy and Utilities Sector Looks to Technology Upgrades to Achieve Compliance Now, Sustainability for the Future