Most firms globally reported 55% or more of legacy tech debt in 2023

New Delhi: About three-quarters of companies globally reported 55 per cent or more of legacy tech debt in the last year, a new report showed on Wednesday.

According to the global IT services firm Accenture, tech debts are casting a wide-reaching shadow across CSP (Communications Service Providers) organisations, impacting business outcomes beyond the IT function.

“Tech debt is a huge challenge for CSPs that can only be overcome by decoupling legacy systems and building the foundation for a Digital Core capitalising on the new opportunities generative AI and digital tech offer,” said Mathangi Sandilya, Global Technology Industry Group Lead, Communications & Media, Accenture.

“Our research found that companies with lower tech debt have consistently outperformed their peers in terms of IT costs, business agility as well as financial growth so the urgency to accelerate transformation is clear,” she added.

The report surveyed 252 global CSP senior executives and decision-makers. The survey took place in November 2023 across 22 countries.

According to the report, the financial and operational costs of maintaining the legacy systems are rising (year-over-year).

About 84 per cent of CSP executives said their company will miss future growth opportunities if it fails to accomplish ongoing IT transformation and 77 per cent recognise that modern IT systems can streamline their IT architecture and lay the foundation for a nimble telco in the future.

When it comes to the implementation of best practices and advancing towards higher stages of technology adoption, only a handful of CSPs have achieved the advanced state.

Around 93 per cent cited cloud-first infrastructure as a significant capability, but only 26 per cent are following advanced practices in transforming their operating model, the report noted.

Similarly, with AI, 91 per cent acknowledged the importance of the technology for their business, yet only 22 per cent have integrated it into customer and network operations.