Global Study Highlights IT Modernization as Executive Priority Amid Key Challenges

A new global study underscores the importance top executives place on IT modernization, with businesses allocating up to 30% of their technology budgets toward upgrades over the next two years. Artificial intelligence (AI) readiness emerges as a central focus in these modernization efforts. However, while ambitions are high, many organizations struggle to realize substantial returns on their investments.

The research, conducted by IDC and sponsored by Rocket Software, surveyed over 800 IT leaders across nine countries and various industries. Findings reveal that nearly two-thirds of executives prioritize modernization, yet progress is hindered by three primary obstacles: cybersecurity threats, legacy system burdens (often referred to as "technical debt"), and a shortage of skilled personnel.

Organizational Objectives

Companies identify their primary modernization goals as enhancing operational efficiency, fostering innovation, and improving customer satisfaction. Those adopting a comprehensive modernization strategy that encompasses infrastructure, data, applications, personnel, security measures, and AI preparedness report experiencing twice the benefits compared to those with a narrower approach.

Challenges Impeding Progress

• Cybersecurity concerns: 51% of respondents cite cybersecurity as their top challenge.
• Data issues: 43% struggle with poor data quality and fragmented systems.
• Talent shortages: 39% identify insufficient training and skilled staff as barriers.

Key Findings

• AI Integration: Nearly 44% of businesses prioritize building AI-ready systems. Among leading organizations, 82% have already implemented AI-ready infrastructure, tripling the adoption rate of their peers.
• Cybersecurity and Resilience: 57% intend to make system protection and recovery from cyberattacks their foremost investment focus in 2025.
• Data Management: Top-performing companies emphasize improving data quality and ensuring reliable data governance.
• Mainframe Modernization: Despite newer technologies, 26% of companies plan to modernize mainframes to better integrate with enterprise systems.
• Workforce Expansion: Half of the organizations plan to increase their IT workforce, concentrating on AI, cloud computing, and cybersecurity expertise.

Expert Insights

Michael Curry, President of Data Modernization at Rocket Software, noted, "Businesses are investing heavily in AI, automation, and cloud technologies. Yet without a clear strategy that prioritizes security, governance, and staff training, outcomes frequently fall short of expectations."

Mary Johnston Turner from IDC added that the key to success lies not only in adopting new technologies but also in the ability to adapt and scale effectively. "Organizations that embrace a holistic approach to modernization are better equipped to navigate risks, break down data silos, and sustain innovation," she said.