Application Environment Complexity, Skill Shortage among Top Challenges for India, IDC finds

CIOTechOutlook Team | Tuesday, 18 October 2022, 09:20 IST

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In a recent report, International Data Corporation (IDC) analyzes the position of Indian organizations in the application modernization journey.

According to IDC research Indian organizations, over the years, have progressed to become application producers in addition to consuming them. Notably, the applications developed are for both internal and external stakeholders. Among Indian organizations, the application portfolio i.e., the share of applications that are on-premises, on the mainframe, native mobile in nature, custom developed, SaaS-based, etc., is diverse. This diversity is observed to be due to long-term technology investments that enterprises make to address their immediate needs.

"As the organizations scale up, they mature in their technology reliance – which results in diversity and complex IT environment. Amid this complexity, the presence of legacy applications holds back organizations from being "resilient", which is the need of the hour. Application modernization, via movement to the cloud, mainframe migration, etc., becomes critical for organizations that plan to transform digitally and aspire to be resilient," says Rithika Ponnala, Senior Market Analyst at IDC India.

Close to 50% of Indian organizations have modernized more than half of their legacy applications, whereas only 26% of the enterprises in Asia/Pacific excluding Japan (APeJ) have done so according to the IDC APeJ Software Survey, 2021 (India n = 102). The main drivers of application modernization are security, digital transformation (DX) journey, and IT simplification or standardization. The factors that are driving organizations to move from legacy applications towards modern applications are expected to remain the same pre- and post-pandemic. This is considering how Indian organizations understand that legacy applications holding back business and consider application modernization as a top priority. The global headwinds, such as the IT supply chain challenges, potential inflation, labor shortages, geopolitical tensions, and different COVID variants, further prompt organizations to transform digitally.

"In today’s digital economy, legacy application modernization is crucial for business success. An outdated application slows down work, leads to revenue leaks, and fails to tap into additional revenue streams. Modernizing legacy applications help businesses remain competitive and efficient while improving security and productivity," says Neha Gupta, Senior Research Manager at IDC India.

When it comes to the scope and approach of application modernization, the same differs by the size of the organization and industry vertical. Similarly, different organizations face different challenges while modernizing their application portfolio.

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