In today’s fast-paced environment, enterprises must embrace advanced technologies to drive innovation. However, legacy systems struggle to meet these rising expectations, with potential security risks, high maintenance costs, and a shrinking pool of experts well-versed in this outdated technology. 

Challenges of legacy systems across domains  

High cost to operate and maintain 
Legacy systems often incur high operational and maintenance costs due to outdated technology and infrastructure. These systems are generally less efficient, resulting in higher resource consumption, slower performance, and increased operational expenses. According to research, the average cost to operate and maintain a single legacy system is 30 million USD, with at least 1.14 trillion USD spent annually on maintaining existing IT investments.

Inefficiency due to isolated systems and lack of interoperation 
Legacy systems were typically designed as standalone solutions, which lack the interoperability required to communicate with other platforms or software applications. Organizations may face fragmented workflows, data silos, and manual processes that increase the time needed to perform tasks. Furthermore, legacy systems are built on layers of technology that have accumulated over the years. As a result, integration with newer systems (such as cloud platforms, API-driven architectures, or real-time analytics tools) can be more complicated. 

High risks due to resource shortage 
Legacy systems can pose high risks to organizations due to the shortage of resources required to maintain and support them. According to Deloitte, companies have seen a 23% decline in their mainframe workforce over the past five years, with 63% of these positions remaining unfilled. This shortage can lead to extended downtimes and delayed issue resolution.

Latency - Low Response to business changes 
As they were built to handle specific tasks and processes, legacy systems often lead to latency and slow responsiveness. When companies need to adapt quickly—whether by implementing new features or responding to changing market conditions—legacy systems often fail to keep up. These systems require manual workarounds and complex integrations to function, which hinders continuous innovation. 

Vulnerability and lack of integrity due to outdated documents   
Legacy formats may lack the robust security features to protect sensitive data against modern threats. According to PwC, legacy systems are impacting the ability to manage and respond to risk, with 36% of global businesses facing increased security vulnerabilities due and inability to withstand the growing sophisticated cyber risks. Over time, the integrity of this data can deteriorate as the systems fail to support necessary updates and validations. Furthermore, outdated documentation and records may no longer align with current regulations or industry standards. Consequently, this creates compliance risks and increases the likelihood of data breaches. 

The road to modernization – Leveraging FPT’s secret recipe for success

Legacy modernization is no longer a choice but a necessity for enterprises across every industry. Therefore, we have developed a comprehensive and tailored approach to legacy modernization that focuses on three key pillars: Customization, Cost Optimization, and Expertise. These elements form the foundation of our methodology for driving successful digital transformation.

Customization: A tailored approach for every legacy system 
As every legacy system is unique, a one-size-fits-all solution is not viable. FPT provides a flexible modernization strategy based on the specific needs of each system. Our approach includes:

• Rewrite: Developing new applications from the ground up.
• Rebuild: Updating and optimizing existing code for modern platforms.
• Rehost: Transitioning legacy applications to new infrastructure without altering core functionality.
• Remake: Reengineering systems to meet the evolving demands of the business.
• Replace: Migrating entirely to new software solutions or platforms when necessary.

Enhancing cost optimization and process efficiency with scalability
Cost management and operational efficiency are critical when modernizing legacy systems. Thus, FPT helps businesses deliver tangible business value with our global delivery model, which combines onshore, nearshore, and offshore resources, providing 24/7 availability. This enables our clients to scale resources up or down based on project demands and ensures that the right expertise is always available at the right time.

A dedicated CoE / key program for legacy modernization  
Successful legacy modernization requires more than just advanced tools— it also requires expertise. FPT brings more than 18 years of experience in delivering successful legacy modernization projects for the BFSI sector. Specifically, FPT has a large pool of 2,500 experts, with deep expertise in mainframe technologies and domain knowledge, and a dedicated Center of Excellence (CoE) that ensures best practices in legacy modernization. Additionally, we empower professional development through initiatives such as the Cobol Academy, to ensure that our experts stay at the forefront of the evolving technologies.

Legacy modernization with xMainframe 

More than just a buzzword, generative AI is now a powerful force that powers transformation across industries. In legacy modernization, generative AI plays a pivotal role by analyzing outdated code, identifying dependencies, and proposing optimal solutions to update or replace legacy systems. By automating much of this process, GenAI significantly reduces the time, cost, and complexity traditionally associated with modernization efforts. According to Gartner, by 2027, GenAI tools will help explain legacy business applications and generate suitable replacements, cutting modernization costs by up to 70%. 

Following the boom of generative AI, FPT leverages the power of this technology to drive the modernization of legacy systems with xMainframe, an advanced large language model (LLM) tailored to seamlessly understand and interact with legacy mainframe systems and COBOL codebases. With this solution, companies can achieve accuracy rates of up to 97%, which is 6 times more efficient than previous models such as ChatGPT 3.5 and 4.  The solution also proved invaluable for data extraction and report generation, especially when dealing with unformatted input files. By automating these tasks, xMainframe reduced processing times from months to weeks, enabling faster, more efficient legacy system transformation.

Powering legacy modernization with FPT

While companies face significant challenges in modernizing their legacy systems, from outdated technology stacks, lack of technical experts, and high costs, FPT can be your trusted partner in navigating this transformation. With deep expertise in legacy modernization, and advanced capabilities in leveraging generative AI, cloud computing, and automation, we deliver tailored solutions that can help enterprises reduce modernization costs and improve operational efficiency.