The challenge of legacy technology

Alex Jeffery at OneAdvanced explains how IT leaders can overcome legacy tech to drive digital transformation

 

Legacy technology presents a growing challenge for IT leaders, with outdated systems increasingly threatening business growth and competitiveness. According to OneAdvanced Trends Report data, 50% of IT leaders report that between one-quarter and half of their technology estate would be classified as legacy, while 83% plan to upgrade their digital systems.

 

The reasons for this are clear: the inefficiencies and risks associated with outdated systems are becoming more apparent as businesses face rising cyber-security threats, higher operational costs, and reduced agility.

 

 

The pressure on IT leaders

IT leaders find themselves at the centre of this storm, tasked with guiding their organisations through a period of technological transition. They must balance competing priorities such as maintaining operational efficiency, safeguarding against cyber-security risks, and ensuring compliance with emerging regulations. The need for digital transformation is urgent, with 43% of IT leaders prioritising infrastructure modernisation and upgrading legacy systems in the coming year.

 

Cyber-security remains a pressing concern for many. Despite 56% of IT professionals expressing confidence in their current digital infrastructure, only 35% feel that their technology stack fully supports business goals. The increasing sophistication of cyber-attacks - often leveraging AI and machine learning - means that even a minor vulnerability can lead to significant consequences.

 

As businesses become more dependent on digital systems, IT leaders must constantly update their security protocols to stay ahead of threats.

 

One core challenge that IT leaders face is persuading other key stakeholders, particularly within the C-Suite, to understand the critical importance of investing in modern technology. This lack of buy-in can often stem from a fear of change, attachment to traditional methods, or concerns over the costs involved. Around 27% of IT leaders report that resistance to adopting new technologies is a key barrier to driving digital transformation.

 

Convincing decision-makers to move forward requires IT leaders to demonstrate the long-term benefits and return on investment that modern solutions can offer.

 

 

The talent gap and outsourcing

Another major challenge facing IT departments is the persistent shortage of talent. Approximately 34% of IT leaders highlight the struggle to attract and retain skilled professionals, a trend that shows no signs of slowing down. This talent gap is compounded by the complexity of managing and integrating new technologies, especially as many organisations continue to rely on a mix of on-premise and cloud-based systems.

 

Many companies are turning to outsourcing to address these issues. In fact, 76% of organisations outsource some or all of their IT functions to external providers. This solution offers multiple advantages, including greater scalability, access to specialised expertise, and the ability to focus internal resources on core business operations.

Outsourcing also reduces the burden on internal IT teams, particularly in areas such as cyber-   security and data protection, where staying ahead of evolving threats requires a high level of expertise and continuous monitoring.

 

Outsourcing partners also offer flexibility. With the rapid pace of technological change, businesses must remain agile to stay competitive. Outsourcing allows organisations to scale their IT operations up or down as needed without the long-term commitment of hiring full-time staff or investing heavily in infrastructure. For smaller businesses or those lacking in-house expertise, this can be an effective way to keep pace with competitors and manage costs.

 

 

The role of AI in digital transformation

Artificial intelligence (AI) and machine learning (ML) have become central to discussions around digital transformation, with 45% of IT leaders prioritising AI and IoT integration in their strategies. While AI holds immense potential for increasing efficiency and driving innovation, it also comes with its own challenges, particularly regarding security. IT leaders are at the forefront of exploring the possibilities of AI while mitigating the risks it poses.

 

The adoption of AI is not uniform across organisations, and IT leaders must balance their enthusiasm for this technology with a cautious approach. Many are experimenting with AI in select projects or departments, while a smaller percentage have integrated it across their entire organisation. As AI continues to evolve, IT leaders must guide their organisations through this complex landscape, ensuring that new technologies are deployed responsibly and in a way that aligns with broader business goals.

 

 

Barriers to digital transformation

For many IT leaders, the biggest barrier to digital transformation is not technological but cultural. Resistance to change remains a significant hurdle, with 27% of IT leaders identifying employees as the source of this resistance and 27% pointing to difficulty in convincing senior stakeholders.

 

Cost is another key consideration, with 53% of IT leaders citing budget constraints as limiting their ability to adopt new technologies. In fact, 18% of IT leaders prioritise cost reduction, balancing financial constraints with the pressing need for innovation. Many are turning to Managed Service Providers (MSPs) to streamline IT operations, reduce overhead costs, and access specialised expertise - offering a more sustainable approach than maintaining large in-house teams.

 

By outsourcing strategic elements of their IT infrastructure, organisations can shift focus from maintaining outdated systems to investing in forward-looking technologies that drive productivity and growth.

 

Indeed, there is light at the end of the tunnel. IT leaders are increasingly adopting modular approaches to technology upgrades, starting with the areas that will deliver the most immediate and visible returns on investment. To stay competitive, IT decision-makers should advocate for smarter, phased investments that balance cost control with the long-term benefits of modern infrastructure.

 

Demonstrating the benefits of modern solutions - efficiency, cost savings, or improved user experience - can help build momentum for further investment and innovation across the organisation.

 

The role of the IT leader is evolving. No longer just the keepers of infrastructure, IT leaders are now strategic partners, guiding their organisations through technological transformations that will shape their future success.

 

The need for digital transformation has never been more urgent, and those who fail to act risk falling behind as their competitors forge ahead with modern, agile, and secure IT infrastructures.

 

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Alex Jeffery is SVP of Managed IT Services at OneAdvanced

 

Main image courtesy of iStockPhoto.com and master1305