Rocket Software surveyed over 300 global decision makers, including CIOs, VPs and directors, responsible for modernizing their company's IT environment and found that modernization challenges are disruptive to businesses, with one-third (33%) of respondents reporting that these roadblocks led to reduced productivity.
In addition, the respondents said that successful IT modernization strategies are tied to more substantial technological and business outcomes, which is why many C-suite executives (42%) champion these efforts, recognizing their transformative potential.
"Modernization is an imperative for achieving both business and technology goals, yet it comes with a range of challenges," said Phil Buckellew, president of Infrastructure Modernization Business Unit at Rocket Software. "Rocket Software is committed to supporting enterprises through this complex process, ensuring that modernization is seamless and effective."
According to Buckellew, they recognize that modernization goes beyond technology upgrades - it involves a strategic transformation of an organization's entire operation.
"Our focus is on enhancing efficiency, improving customer experiences, and driving competitive innovation. The key to a successful modernization journey is partnering with a team that understands the intricacies of the process and provides the solutions, expertise and personalized support to meet you at every stage of your journey," he said.
For businesses, modernization is not just about staying relevant; it's essential for staying agile and competitive. The key to successful transformation is how an organization strategically aligns its technology to its business and the context it operates in, whether that be healthcare, financial services, manufacturing, or retail.
Though it can be daunting, companies are not backing down. Sixty-nine (69%) percent of respondents believe IT modernization is crucial for achieving their business goals over the next 12 months.
However, these modernization journeys come with roadblocks.
Modernization challenges include costly and time-consuming application rewrite projects, with over half of respondents (51%) attempting at most minuscule six rewrite projects as part of their cloud migration strategy due to multiple failures. Rewriting applications can be costly for businesses, often leading to extended timelines, operational disruptions, and an inability to deliver the expected outcomes.
Challenges also include concerns over security (41%), talent shortages/skills gaps (38%), and inadequate tools (30%). These challenges negatively impact business – 38% said modernization challenges have hurt their ability to recruit new talent, 35% said that these challenges reduce their ability to compete, and 44% said that these obstacles have led to delayed timelines.
However, the survey found that organizations that work with external partners (e.g., hyperscalers, managed service providers, trusted software vendors, system integrators, or external consultants) to supplement internal shortcomings reduce these modernization challenges.
Additional survey findings include:
Modernization is a continuous journey
The survey found that priorities differ for organizations at different points in their modernization journeys. Fifty-one (51%) percent of respondents on their IT modernizing journey for more than one year selected "improved ability to take advantage of cloud-native, scalable applications" as a desired outcome, compared to only 37% of those just starting. Experienced IT modernization decision-makers were likelier to select "competitive parity or advantage" as a top outcome than beginners. These insights demonstrate how those with greater maturity make IT modernization a more strategic advantage for their business.
Every journey needs good company
All respondents confirmed that they rely on a partner for their transformation journey. The right partnership can make IT modernization faster, less disruptive, and more aligned with business and IT goals. The capabilities respondents are looking for partners to offer include:
Code and data modernization (83%)
DevOps continuous integration and continuous delivery (CI/CD) (79%)
Open-source compliance (78%)
The destination makes it worth the trip
Businesses are not modernizing for their own sake. They're embarking on this journey to advance strategic business and tech initiatives to improve efficiency, optimize resources, and reduce risks. The top outcomes that decision-makers want to gain from modernization include:
Improved ability to leverage the power of application integration (50%)
Improved ability to take advantage of cloud-native, scalable applications (48%)
Improved DevOps pipelines (i.e., better quality and faster velocity) (44%)
Decision makers are evaluating the success of their modernization programs on:
Improved operational efficiency (51%)
Improved customer experience (45%)
Reduced security, risk, and compliance issues (43%)
Increased employee productivity (41%)
Increased business and technology agility (40%)
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