Old systems are draining resources, frustrating customers, and blocking progress in AI and innovation.
Even with fast-paced developments in AI and digital transformation, most businesses are still stuck with legacy systems. In a new report by Pegasystems, it is understood how technical debt is hampering innovation and damaging customer experience. In accordance with a report unveiled in Las Vegas, as AI becomes the future of business, most international businesses are stuck in the past.
A new Pegasystems Inc. research report, published at its PegaWorld conference, shows that technical debt is wearing the yoke of working with, is among the largest deterrents preventing businesses from embracing artificial intelligence (AI) and other next-generation tools. The study, completed with research firm Savanta, polled more than 500 IT decision-makers in the U.S., U.K., Germany, France, and Australia.
Key Findings Of the Report
The study, conducted with research firm Savanta, was unveiled at PegaWorld and surveyed more than 500 IT decision makers across enterprises worldwide on the challenges caused by technical debt and the progress in modernizing legacy technology.
68% of technology leaders indicate that old systems are holding back their organizations from leveraging new technologies such as AI.
88% fear that their use of old technology is making them fall behind speedier, more innovative rivals.
57% acknowledge that subpar customer experiences created by old systems are likely pushing customers away.
Why Legacy Tech is a Problem
Most businesses still rely on outdated software and systems as some more than 20 years old, because they are indispensable to everyday operations. However, these systems are costly to maintain, difficult to upgrade, and often isolated from newer technologies.
47% of companies are operating apps aged 11–20, and 16% operate on systems aged 21–30. About 68% believe these systems diminish overall business efficiency owing to high maintenance expenses and wasted time.
Customers are Paying the Price
Three-quarters of companies confess that they invest more in projects boosting profit than in enhancing customer experience. This profit-before-people mentality might be the reason why 32% of companies experience longer response times, up to 50% longer, when processing customer inquiries.
A Wake-Up Call for Businesses
Don Schuerman, Pega’s Chief Technology Officer, cautions:
“Old systems bring down companies. It’s not merely a question of high expense- it’s a matter of losing business. Companies need to move now to modernize and leverage capabilities such as AI to remain competitive.”
With increasing customer expectations and fast-paced technology shifts, the message is unmistakable: repair the past, or run the risk of missing the future.