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For Application Modernization Leaders

The 2026 outlook for application modernization leaders

Application modernization is no longer just about reducing technical debt. In 2026, it’s becoming essential to realizing the business value of AI investments.

Explore six shifts shaping how technology leaders are prioritizing modernization and where they’re focusing their investments next.

Shifts preview

Six shifts shaping application modernization in 2026

This preview highlights three of the six shifts covered in the full 2026 Application Modernization Outlook. Download the report for the complete analysis, supporting data, and practical actions technology leaders can use to inform their modernization priorities.

Shift 01

Modernization is shifting from fixing legacy problems to enabling what comes next"


13.5–14.6% CAGR through 2032
Organizations are increasingly modernizing before legacy systems become critical problems. The focus is shifting to the applications that slow innovation, limit AI adoption, or make it harder to respond to new business priorities.

Shift 02

Past transformation failures are making leaders more cautious about modernization


88% of transformations miss ambitions
Many organizations know which applications need to change. The challenge is building a business case strong enough to overcome concerns about cost, complexity, and execution risk, even as modernization approaches have improved.

Shift 03

Modernization engagements are shifting from hours to outcomes


67% now outcome-based
Enterprises are increasingly evaluating modernization partners on the outcomes they deliver, not just the cost of resources. As cost reduction becomes less central to outsourcing decisions, business impact, speed, and accountability are playing a bigger role.
WHAT'S INSIDE THE REPORT

What you'll get in the 2026 Application Modernization Outlook

The full report brings together six shifts shaping modernization priorities for 2026. Each one includes supporting data, what it means for technology leaders, and practical actions to help guide your next decisions. You'll also get a one-page worksheet to use with your team.

Shift 01

Modernization reframed around growth, not defense

How modernization priorities are shifting toward innovation, AI adoption, and business agility.

Shift 02

Past transformation failures are raising the bar

Why concerns about cost, complexity, and execution risk are making the business case more important.

Shift 03

Modernization engagements are shifting from hours to outcomes

Why enterprises are putting more emphasis on business impact, speed, and accountability.

Shift 04

AI investments are putting modernization ROI under greater scrutiny

How pressure to prove AI value is changing which modernization initiatives get funded.

Shift 05

Technology leaders are consolidating their vendor ecosystems

Why organizations are reducing vendor complexity and expecting more from strategic partners.

Shift 06

Modernization decisions are expanding beyond IT

How product leaders and enterprise architects are gaining more influence over modernization priorities and vendor selection.

About this outlook

This outlook brings together current market signals and industry trends to highlight six shifts shaping application modernization in 2026. It’s designed to help technology and business leaders understand what’s changing, where priorities are moving, and what actions to consider next.

Simple, Smart, Reliable. Built for what’s next.

Ready to turn these shifts into action? Talk with our team about your modernization priorities, challenges, and what comes next.

Download the full outlook
Get the complete 2026 Application Modernization Outlook, including all six shifts, practical insights, recommended actions, and a one-page worksheet for your team.