Modernization Challenges Hamper IT Team Productivity, New Rocket Software Survey Reveals

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 leader in modernization solutions, has unveiled the results of its latest survey, IT Modernization Without Disruption. Conducted by Forrester Consulting, the survey gathered insights from over 300 global decision-makers, including CIOs, VPs, and Directors, who are responsible for modernizing their organizations’ IT environments. The survey explores strategies for IT modernization and the value that external partners bring to the process.

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 remaining relevant; it is crucial for maintaining agility and competitiveness. The success of this transformation hinges on how organizations strategically align their technology with their business goals and the specific contexts in which they operate, whether in healthcare, financial services, manufacturing, or retail. Despite the daunting nature of these efforts, companies remain determined, with 69% of respondents indicating that IT modernization is essential for achieving their business objectives within the next 12 months.

However, the journey to modernization is fraught with challenges. Key obstacles include expensive and time-consuming application rewrite projects, with over half (51%) of respondents having attempted at least six rewrites as part of their cloud migration strategies due to multiple failures. These rewriting efforts can prove costly, often leading to extended timelines, operational disruptions, and frequently falling short of expectations. Other challenges include security concerns (41%), talent shortages or skills gaps (38%), and inadequate tools (30%). These issues have tangible negative impacts on businesses, with 38% reporting that modernization challenges hinder their ability to attract new talent, 35% stating these challenges diminish their competitive edge, and 44% citing delays in project timelines.

The survey revealed that organizations collaborating with external partners—such as hyperscalers, managed service providers, trusted software vendors, system integrators, or external consultants—experience fewer modernization challenges.

“Modernization is essential for achieving both business and technology goals, yet it presents a range of difficulties,” said Phil Buckellew, President of the Infrastructure Modernization Business Unit at Rocket Software. “At Rocket Software, we are dedicated to guiding enterprises through this complex process to ensure that modernization is seamless and effective. We understand that modernization goes beyond mere technology upgrades; it requires a comprehensive transformation of an organization’s operations. Our focus is on enhancing efficiency, improving customer experiences, and driving competitive innovation. A successful modernization journey hinges on partnering with a team that understands the intricacies of the process and offers the solutions, expertise, and personalized support needed at every stage.”

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%)