What’s holding enterprises back from IT modernization?

A successful IT modernization journey is about far more than just implementing a new technology into IT systems. Modernization is a complex process that requires the right strategy to be successful. Specifically, it requires technologies that align with each other, the environment they’re in, and intended business outcomes. Having the right modernization strategy and approach in place can move an organization forward and establish a competitive edge by increasing flexibility, efficiency, and potential.

The modernization journey is about making the most of existing technology investments while adding to an environment to adapt for the future. This allows organizations to stay ahead of the game no matter what’s coming down the pike.

To dig deeper into what those challenges are, Rocket Software and Forrester Consulting surveyed 309 IT decision-makers worldwide and asked them about their modernization journeys. The survey, IT Modernization Without Disruption, found several hurdles on the path toward the finish line but also found a common solution to overcome them in the form of expertise and effective solutions from a trusted partner. Having the experience of a modernization partner can fill any skills and technology gaps an organization may have, which will accelerate the pace of the journey. This will ultimately lead to improved efficiency from invested technologies, both old and new, for IT modernization without disruption.

Let’s look at what the tallest hurdles are on the path toward IT modernization.

IT teams fail at rewriting applications on the first try

An important element of IT modernization is modernizing legacy applications to work more efficiently, sometimes in new environments. It is such a priority for organizations that, according to surveyed decision-makers, nearly one-fifth (18%) of modernization budgets are allocated to rewriting applications. The trouble is that application rewrite projects have a high failure rate. Just over half of IT decision-makers (51%) surveyed said they attempted at least six app re-write projects due to multiple failures, according to the survey.

On top of this risk, IT teams still are strapped with a lack of specified skills when it comes to modernization. They must also face complex environments in addition to heightened security risks and concerns. There are several approaches that can mitigate the risks of full application rewrites, from modernizing in place, to building hybrid solutions, to replatforming workloads that are better suited for other environments. Critical to all these approaches is finding the right partners with the right expertise to help make the projects successful.

Security risks can hold modernization back

When modernizing IT infrastructure and applications, unforeseen issues such as security breaches and vulnerabilities are a major concern for organizations. In the survey, 41% of IT decision-makers pointed to concerns over security risks as the biggest obstacle on their journey.

Because many IT teams are short on the required talent and skills needed to complete these projects, the concerns over these risks are heightened, according to 38% of respondents. One-third of respondents also cited complex integration strategies as a major barrier, while 30% said there are concerns over the ungoverned use of new technologies like AI and inadequate software platforms.

Enterprises can appease these concerns by working closely with a trusted partner throughout the modernization journey. Security is broad and deep, and ensuring security for core transactional systems is complex, so partnering with a vendor that specializes in vulnerability analysis and has baked in governance and security for application and data migration is paramount.

Modernization challenges can hinder productivity

Modernization is a complex endeavor. When challenges arise, they have the potential to disrupt the day-to-day operations of a business. That disruption can create a drag on the overall productivity and efficiency of a business, which in turn can cause operating costs to steadily creep up. 

According to the survey, almost half (44%) of decision-makers believe modernization obstacles have delayed their previously planned timelines, while a third of respondents stated these problems led to reduced productivity. These challenges can negatively impact a company’s ability to recruit talent, according to 38% of respondents, while 35% believe it impacts their ability to compete. These combined challenges led to an increase in operating costs, according to 40% of decision-makers.

Enterprises can overcome these challenges by investing in strong partnerships that incorporate skills, solutions, and processes to get the job done correctly while mitigating any risks.

The survey found that to solve these issues, roughly two-fifths of decision-makers invest in new technologies to drive innovation and partnerships, while almost half are upskilling and providing training services to employees focused on IT modernization. 

The key to a successful IT modernization strategy is having a plan mapped out before embarking on this journey. If there are gaps in skills and solutions that could open and organization up to risks, it’s a good idea to consider an experienced partner who can fill those gaps for a successful modernization project. A trusted partner like Rocket Software can lead to modernization without disruption and fill the voids around skills, experience, and solutions to complete a successful IT modernization journey.

Learn more about the modernization challenges facing organizations with the full report.