Hamburger icon
Close Icon

2023 State of IT Modernization – Securing Enterprise Competitiveness

Today’s world is characterized by rapid technological changes. New technologies are emerging at an unprecedented rate, disrupting businesses and industries worldwide. Adoption of these new technologies can be a make-or-break moment for organizations. Therefore, businesses need to keep modernizing their IT infrastructure to stay competitive and relevant. The pace of technological change is accelerating. In the past, it took decades for a new technology to go mainstream. Today, new technologies can go from concept to commercialization in just a few years.

Nasscom’s 2023 State of IT Modernization report aims to assess the level of IT modernization preparedness of across enterprises across various sectors. It also elaborates on the evolution of IT modernization and its phases over the years, insights from the first ever nasscom IT Modernization end user survey, roadmap for end users, and playbook and framework for enterprises for scaling IT modernization.

DOWNLOAD PDF SHARE REPORT
Product Image

Key Findings

01

  • Planning – assessing current needs, goals, and IT infrastructure
  • Implementation – changes made to IT infrastructure
  • Testing – testing new infrastructure
  • Deployment – new infrastructure provided to users
  • Key modernization benefits include over 30% increase in IT productivity, upto 60% reduction in defects, upto 60% reduction in time to market, and over 40% increase in employee motivation.
02

  • Cloud Migration – Migration of enterprise’s applications, data, and other resources to cloud.
  • Application modernization – Updating / replacing legacy applications.
  • Platformization – Creating / updating platforms for applications to run.
  • Emerging Tech infusion – Adopting new technologies.
  • Data modernization – Updating / replacing data systems.
  • Security modernization - Updating / replacing security systems.
03

  • Modernization is topmost priority for most enterprises- 88% users have up to 60% of their Tech budget dedicated to IT modernization.
  • Top 4 key benefits of IT modernization - productivity boost, reduced operational costs and tech debt, improved business agility, and scalability.
  • 61% enterprises intend to re-architect/rebuild legacy applications.
  • North American enterprises are ahead of others in the IT modernization journey due to strong focus on innovation, large and mature IT markets, well-developed financial markets and strong regulatory environment. Indian enterprises are fast catching up.
  • Larger enterprises (>$100Mn revenues) have a more planned approach in their modernization journey with a long-term vision in place.
  • Gen AI, 5G/6G, Web 3, and Blockchain are top emerging technologies completely reshaping IT modernization journeys of enterprises.
  • Key future considerations for enterprises in IT modernization journey include data residency and security.
  • In the next 2 years, 47% of enterprises would have modernized up-to 60% of their applications.
04

  • Nasscom’s modernization maturity analysis by vertical keeps in mind several factors such as the size and complexity of the business, their modernization priorities, cloud strategy, the sector’s specific needs, their usage of emerging tech, and the level of investments, to arrive at 4 maturity levels – Commencer, Enthusiast, Expert, and Evangelist.
05

  • Only 1/3rd of end users are satisfied with their current state of modernization.
  • Technology service providers need to focus on five building blocks that are essential to successfully scaling IT Modernization – Strategy, Technology, Data security, and Process.

Download
this report

  • Regular Price: Free
  • Member Price: Free
Download report

Related Reports

Quarterly Industry Review – September 2023

Quarterly Industry Review – September 2023

Analysis of the Technology industry performance during the quarter ending June 2023. This analysis is based on the quarterly financial results declared by the top listed Technology…

Free for Members
India Technology Industry Compensation Benchmarking Survey Findings: 2023

India Technology Industry Compensation Benchmarking Survey Findings: 2023

The findings presented in this report are based on a Technology compensation benchmarking survey conducted by Deloitte and supported by nasscom. The report focuses on key imperatives…

Free for All
AIOps: The Key to Achieving Tech Agility

AIOps: The Key to Achieving Tech Agility

AIOps is a new and rapidly growing area of IT management that uses artificial intelligence and machine learning technologies to automate IT operations and improve overall efficiency.…

Free for All

Share this report

Or share with link

https://nasscom.in/knowledge-center/publications/2023-state-it-modernization-securing-enterprise-competitiveness
Copy Copied
Close Icon
close