Modernization Challenges Hinder Productivity Among IT Teams, According to New Survey from Rocket Software

While modernization challenges impact productivity and business success, survey finds that all IT decision-makers are turning to experienced partners for support

Rocket Software, a global technology leader in modernization software, today announced the findings from its survey, IT Modernization Without Disruption. Rocket Software commissioned Forrester Consulting in this survey of over 300 global decision makers, including CIOs, VPs and Directors, responsible for modernizing their company’s IT environment to explore strategies and the value external partners provided.

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Key survey findings include:

• Modernization challenges are disruptive to businesses, with one-third (33%) of respondents reporting that these roadblocks led to reduced productivity.
• Successful IT modernization strategies are tied to both stronger technological and business outcomes, which is why many C-suite executives (42%) are championing these efforts, recognizing their transformative potential.

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 their technology to their business and the context it operates in, whether that be healthcare, financial services, manufacturing or retail. Though it can be daunting, businesses 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 are not without roadblocks. Modernization challenges include costly and time-consuming application re-write projects, with over half of respondents (51%) attempting at least six re-write projects as part of their cloud migration strategy due to multiple failures. Rewriting applications can be a costly mistake for businesses, as it often leads to extended timelines, operational disruptions, and frequently fails to deliver the expected outcomes. Challenges also include concerns over security (41%), talent shortages/skills gap (38%), and inadequate tools (30%). These challenges are negatively impacting business – 38% said modernization challenges have hurt their ability to recruit new talent, 35% stated 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 who 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.

“Modernization is an imperative for achieving both business and technology goals, yet it comes with a range of challenges,” said Phil Buckellew, President, Infrastructure Modernization Business Unit, at Rocket Software. “At Rocket Software, we are committed to supporting enterprises through this complex process, ensuring that modernization is seamless and effective. We 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 not only understands the intricacies of the process but also provides the solutions, expertise and personalized support to meet you at every stage of your journey.”

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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 who have been on their IT modernizing journey for more than one year selected “improved ability to take advantage of cloud-native, scalable applications” as a top desired outcome, compared to only 37% of those who are just starting out. Experienced IT modernization decision makers were also more likely to select “competitive parity or advantage” as a top outcome compared to beginners. These insights demonstrate how those with greater maturity are making 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 the sake of it. They’re embarking on this journey to advance strategic business and tech initiatives to ultimately 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%)

Methodology
In this study, Forrester conducted an online survey of 309 global decision-makers in charge of modernizing their company’s mainframe to explore IT modernization strategies and the value provided by external partners. Survey participants included decision-makers in IT, IT security, operations and others. Respondents were offered a small incentive as a thank you for time spent on the survey. The study began in May 2024 and was completed June 2024.

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