Tech leaders are ramping up IT modernization, but they’re wary of the potential productivity nosedive that comes with it

IT modernization projects have a significant negative impact on enterprise productivity, according to new research.

A survey from Rocket Software and Forrester Consulting found IT leaders are wary of the potential risks of IT overhaul programs, with one-third believing they are highly disruptive to operations.

Common roadblocks encountered during modernization projects often lead to reduced productivity, but there are broader considerations at play, the study found.

Some of the most common hurdles faced by IT leaders include costly and time-consuming application rewrite projects. Just over half (51%) of respondents admitted to having attempted at least six rewrite projects as part of a cloud migration strategy.

“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,” the study noted.

Other challenges include concerns over cybersecurity, identified by 41% of respondents as a recurring issue, and talent shortages.

Just over one-third (38%) of respondents specifically highlighted talent shortages and skills gaps as a major roadblock during IT modernization projects. Worse still, IT leaders noted that modernization challenges have impacted their ability to recruit new talent.

IT modernization is still a critical focus

Despite daunting prospects, IT leaders still acknowledge the importance of modernization in helping their business to remain agile and competitive.

More than two-thirds (69%) of respondents said IT modernization is “crucial for achieving their business goals over the next 12 months”.

“Successful IT modernization strategies are tied to both stronger technological and business outcomes,” wrote Rocket Software. “Which is why many C-suite executives (42%) are championing these efforts, recognizing their transformative potential.”

The study noted that the key to successful transformation can often lie in external support. Survey respondents at organisations that worked with third-parties, such as hyperscalers, managed service providers, or external consultants to compensate for internal shortcomings experienced far better success.

“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. “Modernization goes beyond technology upgrades – it involves a strategic transformation of an organisation’s entire operation.”