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Legacy system modernisation urgency

The clock is ticking for legacy systems

Why legacy has to go

Legacy systems have long been the backbone of enterprise IT, but in today’s world, they are increasingly becoming a liability. A study by McKinsey & Company revealed that up to 70% of the software in use at Fortune 500 companies was developed over two decades ago. The limitations of legacy systems are well-documented, and their impact on businesses is becoming more severe. These outdated systems demand extensive maintenance and consume a significant portion of IT budgets. According to a Stripe survey, developers spend 42% of their week dealing with technical debt and bad code from legacy systems.

Legacy systems leave little room for innovation. They lack the agility to support modern business processes, pose security vulnerabilities and are often incompatible with new technologies, hindering digital transformation efforts. Moreover, an increasing number of legacy frameworks and platforms face sunsetting. As these systems reach end-of-life, finding skilled developers or vendor support gets harder.

A new sense of urgency

The longer organisations delay legacy modernisation, the greater the risks and costs to the business. Here’s why IT leaders must prioritise modernisation today:

Security risks are growing: Cyberattacks are becoming more sophisticated, and legacy systems are prime targets due to outdated security measures.
Technical debt is increasing: The cost of maintaining legacy systems is rising, leaving less budget for innovation.
Competitive pressure is mounting: Businesses that modernise are gaining a competitive edge with enhanced agility and customer experiences.
AI and automation are changing the game: Companies that fail to embrace modern technologies risk falling behind as AI-driven efficiencies redefine industries.

The secret weapon to moving beyond legacy – for good

The good news for IT leaders is that legacy modernisation no longer has to be a complex, high-risk, and multi-year project. OutSystems, an AI-powered low-code platform, is revolutionising how businesses modernise their IT landscape. Here’s how.

AI accelerated code migration

OutSystems offers a unique AI tool, FactOryAI, which enables developers to migrate legacy code and rebuild the core of legacy systems hassle-free in record time. Schneider Electric, a Fortune Global 500 headquartered in France, was able to replace 60 legacy and monolithic applications with OutSystems apps that feature next-gen capabilities in just 20 months.

Rapid development

By leveraging AI and low-code, projects that once spanned multiple years can now be completed in months, not years. Using OutSystems, the New Zealand Transport Agency (NZTA) transitioned from its aging national testing system to a modern and agile cloud-based solution in just six months. With five developers, the project was delivered on time with all the agreed functionality, which was critical due to the expiring software license of the legacy solution.

Cost efficiency

AI-powered low-code eliminates the need for extensive manual coding, significantly cutting development and maintenance costs and accelerating time to value. McKinsey has found that AI-driven modernisation efforts can reduce costs by up to 40%. Recently, one of Australia’s largest equipment hire providers used OutSystems to replace its legacy system with a new procure-to-pay portal. The portal achieved a 60% time-saving in processing tasks, dramatically reducing costs and risks.

Seamless integration

Low-code platforms provide pre-built connectors and APIs, making it easier to integrate with other systems. Global consumer electronics leader Logitech relied on dozens of Lotus Notes apps, which were outdated and difficult to deploy. With OutSystems, the company replaced 80 Lotus Notes apps with solutions that consolidate functionality into fewer, much more powerful apps, and integrate with a vast array of systems.

“OutSystems is key to helping us integrate many different sources of data and launch products faster.” Steven Schmidt, Enterprise Collaboration Manager

Improved security out-of-the-box

Modern platforms like OutSystems are built with advanced security frameworks, helping organisations meet compliance and cybersecurity standards. One of the key reasons multinational security provider Prosegur Seguridad chose OutSystems was its enterprise-grade scalability and security.

“The strong security credentials of the OutSystems platform was a major plus for us—as a security firm, we take cybersecurity very seriously. By developing a consistent backend with OutSystems, we’ve been able to turn-off 16 legacy systems,” Andrew Buch Sampaio. Director of Systems Engineering, Prosegur

Scalability and performance

Cloud-native architectures ensure systems can scale dynamically to meet business demands. OutSystems recently enabled a global community to replace its existing Android legacy application with a world-class mobile app that grew its user base to 40K+ people.

“We were spending several million dollars every year on a legacy app that had zero features. The developers were afraid to touch it because as soon as they did, the whole thing fell down. We’d get 24,000 people unable to use the platform. With the OutSystems app, we’ve taken the usage close to 50,000 with lots of new features and 100% availability.” CEO, Consulting Organisation.

Enhanced agility

With the OutSystems platform, businesses can adapt quickly to market changes by continuously updating and iterating applications. Recently, GarantiBank International successfully moved its core end-to-end processes to the cloud. The bank now has the agility needed to deliver fast and continuous process improvement to meet their customer experience, operational excellence, and digital transformation objectives.

“The OutSystems platform has helped us adopt a leaner, more agile way of working that helps our digital transformation and operational excellence initiatives fly.” Marco Witteveen, COO at GarantiBank International.

Eliminates developer dependency

The software lives independently of the original developer, allowing new developers to step in and make changes without extensive reverse engineering.

“IT Leaders don’t like developers to be attached to a particular product for too long. With OutSystems, whenever you need a change, you can bring in any developer.” OutSystems CEO Paulo Rosado

Future-proof your applications

With OutSystems, you can continuously change and evolve your apps quickly and easily with drag-and-drop components and one-click deployment of updated code. For the Malaysia Digital Economy Corporation (MDEC), the benefits of the platform went beyond speed when replacing 50 legacy apps. OutSystems is helping MDEC revolutionise its software and application infrastructure, providing a future-proof, scalable foundation for existing and new applications.

Let’s talk about how OutSystems can help accelerate your modernisation projects

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