IT leaders are throwing money away with legacy systems: Enterprises report $370 million in losses each year due to outdated tech

"Legacy transformation projects account for the largest financial hit recorded by enterprises, the study found, equivalent to nearly $134 million globally each year. These projects are a laborious process, Pegasystems noted, requiring IT teams to overhaul outdated and often resource-intensive systems. The time-related costs associated with legacy transformation projects was also a major factor in financial losses. Many of these projects fail, the study said, costing around $58 million a year on average."

""Too few enterprises today consider the hundreds of millions of dollars they hemorrhage every year because of both the direct and indirect financial impact of inefficiencies caused by legacy technologies and technical debt," he said. "It's no longer acceptable to depend on systems that are no longer fit for purpose, take valuable resources to replace, and which could be the difference between your organization's success or failure.""

"IT leaders are going to great lengths to both cut down on and simply maintain technical debt, according to Pegasystems, and it's draining resources. Indeed, 78% of respondents described the process as a "waste of time, effort, and money," noting that resources could be better spent on other projects that make the business more effective and efficient."

Technical debt and legacy systems impose large financial burdens on enterprises, with legacy transformation projects costing about $134 million globally per year. Transformations require IT teams to overhaul outdated, resource-intensive systems and incur significant time-related costs; many such projects fail, averaging around $58 million in annual losses. Ongoing maintenance of legacy systems costs roughly $56 million per year. Combined direct and indirect inefficiencies from legacy technologies and technical debt can determine organizational success or failure. IT leaders expend considerable resources cutting down or maintaining technical debt, and 78% describe those efforts as a "waste of time, effort, and money" that could fund more effective projects.

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