
Legacy tech is bleeding enterprises as modernisation delays cost
With AI adoption racing ahead, outdated systems are holding organisations back as technical debt is rapidly becoming one of the most expensive challenges facing enterprises today, costing them more than just money.
According to new research by Savanta for Pegasystems, a staggering 68% of enterprise leaders say legacy systems are blocking their ability to adopt emerging technologies as businesses are eager to modernise, many find themselves locked into maintaining outdated infrastructure, creating a cycle of "legacy dependency" that's tough to break.
Nearly half of surveyed enterprises said they're stuck supporting critical old applications that slow down transformation efforts. Operational efficiency is also taking a hit, with 68% acknowledging that aging tech is making it harder to streamline workflows.
Budget pressures are another major concern with almost half of IT leaders reporting that ongoing maintenance of legacy platforms is eating into resources, leaving little room for innovation. In many cases, companies are still relying on systems that are between 11 and 20 years old, long past their expiry date in today's fast-paced digital environment.
But beyond finances and sustainability, the real impact may be on the customer experience. Enterprises say they're losing their edge, with 88% expressing concern over the competitiveness risk posed by outdated technology. Over half admitted that reliance on legacy systems is likely causing customer churn.
Meanwhile, customers are getting louder about their dissatisfaction. A recent Pegasystems consumer study revealed that 77% of consumers expect companies to invest more in improving digital experiences. Many said the quality of service they receive has declined over the past decade, and patience is wearing thin.
Sachin Agrawal, Managing Director for Zoho UK commented: "The modernisation of legacy infrastructure should be seen as a business priority in order to remain competitive in today's increasing digital landscape. Technical debt accumulates not only in code but also in architectural decisions and process workflows as legacy systems introduce inefficiencies and increase the complexity of integrating emerging technologies.
"Software providers should consider delivering solutions that support phased transformations, such as tools that leverage automation, data analysis and reduce manual work to provide clear modernisation pathways. This enables businesses to mitigate risks and maintain continuity while aligning infrastructure with evolving business and technology needs."
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