BENGALURU, India, May 5, 2022 /PRNewswire/ -- The race to
modernize continues, and companies already see the finish line,
according to new research from the Infosys Knowledge Institute, the
thought leadership and research arm of Infosys (NSE: INFY)
(BSE: INFY) (NYSE: INFY). The study reveals that 50 percent of
the global legacy application landscape is expected to modernize in
the next two years, with 70-90 percent modernizing in the next five
years.
Infosys Modernization Radar 2022 found that
application modernization leads to increased benefits from cloud,
enterprise data, and exponential technologies like analytics, APIs,
AI and microservices. Modernization also improves scalability and
creates a digital backbone. The research underscores that
modernization reduces operational expenditures, increases revenues,
and provides a better customer experience.
The research identified four swift and effective modernization
approaches:
1. The right modernization strategy: Holistic, automated, and
aligned
Our research found that 88 percent of systems are legacy; of
those, 45 percent are legacy mainframe. More than half (52 percent)
are core to the business, and the rest are supporting applications
– all need to avoid the risk of disruption. Many of the legacy
systems lack adequate support, making them vulnerable and
presenting security risks. Companies should adopt a holistic view
of the enterprise estate, increase automation, and align business
and IT on modernization decisions.
2. Multiple talent pools reduce risk
Fifty-one percent of respondents cited the lack of skills and
talent as a bigger pain point than the risk of disruption (27
percent) and modernization costs (24 percent). Companies need to
upskill their employee base and acquire niche skills such as
reengineering, database modernization, and rules externalization.
The research recommends companies invest in their workforce, build
communities of practice for modernization, and tap the gig economy
to harness talent as a modernization tool.
3. Modernization investment should be more strategic than
discretionary
Although companies on average invest a full 65 percent of
discretionary budget on modernization projects, large companies
tend to budget more strategically for modernization. These firms
develop a clear modernization roadmap and are more likely to go
all-in on big modernization projects. Modernization is now on the
executive agenda, and it should become a crucial component of
enterprise technology planning.
4. Phased approach and coexistent methodologies are less
disruptive than a big-bang approach
A systematic phased and coexistent approaches to modernization
cause the fewest disruptions. When legacy and modernized
applications coexist with two-way data syncing, this coexistence
limits end-user disruptions. According to the research, 51 percent
of respondents who extensively use a big-bang approach experience
more frequent and severe disruption. However, severe disruption
levels and frequency for a phased and coexistent methods were far
lower.
Ravi Kumar S, President, Infosys, said, "Enterprises must
accelerate their modernization journey and it is imperative that
they act now. As the Infosys Modernization Radar 2022
shows, a wait-and-see approach is just not tenable.
Modernization plays a pivotal role in equipping businesses to
deliver strategically and seamlessly in a customer-centric era. Our
Infosys Modernization Suite, part of Infosys Cobalt, helps
enterprises modernize their legacy systems and become
future-ready."
To learn more about Infosys Modernization Radar 2022, please
visit:
https://www.infosys.com/services/application-modernization/insights/modernization-radar-2022.html
Methodology
Infosys used a blind format to conduct an online survey of 1,500
senior technology leaders and executives across thirteen industries
across the U.S., Europe,
Australia, and New Zealand. To gain additional qualitative
insights, phone interviews were also conducted with practitioners
and subject matter experts.
About Infosys
Infosys is a global leader in next-generation digital services
and consulting. We enable clients in more than 50 countries to
navigate their digital transformation. With over four decades of
experience in managing the systems and workings of global
enterprises, we expertly steer our clients through their digital
journey. We do it by enabling the enterprise with an AI-powered
core that helps prioritize the execution of change. We also empower
the business with agile digital at scale to deliver unprecedented
levels of performance and customer delight. Our always-on learning
agenda drives their continuous improvement through building and
transferring digital skills, expertise, and ideas from our
innovation ecosystem.
Visit www.infosys.com to see how Infosys (NSE: INFY) (BSE: INFY)
(NYSE: INFY) can help your enterprise navigate your next.
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