Digital workplace

The high stakes of IT inaction: Modernize now or pay later

Article 11-Mar-2025 Read time: 1 min

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By Caio Briski, Strategic Markets Consult and Practices Leader at Kyndryl

IT leaders are confronted with a critical decision: modernize their systems or risk falling behind. While the challenge of disruption is real, the cost of inaction could be extreme.

Businesses now operate in a more dynamic, competitive and digitally dependent environment than ever. Customer expectations are high, supply chains are globally interconnected and the speed of technological advancements is outpacing traditional capabilities to manage them.

At its core, IT modernization is about upgrading technology — and it is about helping businesses innovate at speed without legacy constraints, adapt to market changes with agility, reduce operational risk and technical debt, and enhance resilience and security in an accelerating threatscape.

But when organizations struggle to update their IT systems, the risks of stagnation are substantial. That’s why businesses need a trusted partner that can help them overcome the hurdles associated with effective modernization.

The true cost of doing nothing

A common concern for small and large organizations is the risk of disruption that accompanies modernization. Yet, what often goes unnoticed is the greater risk of doing nothing.

Few businesses intend to stick to the status quo. However, many find themselves in that position as projects become mired in lengthy decision-making processes or as leaders struggle to build consensus. This failure to act — or to act quickly enough — comes at a cost.

As legacy systems age, maintenance costs escalate, diverting resources from innovation and transforming IT into a roadblock rather than a way forward. Similarly, outdated infrastructure increases an organization’s cybersecurity attack surface, exposing companies and governments to cyber threats. And businesses that are unable to deploy modern technologies will struggle to keep pace with digital-native competitors, as slow, outdated systems negatively impact service delivery, customer satisfaction and overall business growth.

The good news is that business and technology leaders can take proactive steps to overcome common modernization obstacles. Here’s how:

Navigate the disruption

There’s a common misconception that IT modernization is a high-risk, all-or-nothing game. But this doesn’t have to be the case. The key to successful modernization is incremental, well-planned transformation. At Kyndryl, we empower our customers to succeed by guiding them through a phased, business-driven approach. This methodology reduced risk and increased flexibility for a global retailer that modernized its core systems in stages.

Create a clear strategy

Many companies invest in cloud, automation or AI without a unified strategic vision. This results in conflicting priorities and mission failure as the technologies fail to work together effectively. However, successful organizations treat modernization as a business-driven initiative, not just an IT project. Collaboration with a trusted IT services partner is critical to developing integrated strategies that align IT investments with overarching business goals.

Invest in skills and talent

New technologies demand new skills, but IT teams are often overworked, and training efforts can’t keep pace with change. That’s why investing in people is just as important as investing in technology. The most successful modernization initiatives prioritize empowering teams with the right skills, processes and tools to do the job. A trusted partner will collaborate with customers to upskill their teams and build capabilities for long-term success.

Balance short- and long-term needs

Many businesses focus on immediate cost savings at the expense of long-term strategic benefits. This shortsighted approach often leads to piecemeal modernization efforts that fail to deliver their full potential. In contrast, organizations making the most significant impact treat modernization as an ongoing process rather than a one-time project. By adopting a long-term strategy, businesses can avoid fragmented efforts and maximize their return on investment.

A company’s decision to modernize its IT estate must be collaborative, strategic and timely. Wait too long, and you’ll miss the boat. But jump without clear targets in mind, and you’ll spend money you don’t have on projects that don’t work. The balanced, methodical and ultimately successful approach to IT modernization is to work with an experienced partner that understands your business, knows the tech and has helped companies in every industry achieve the results they need to compete and grow.