{"id":35623,"date":"2024-10-24T12:06:58","date_gmt":"2024-10-24T11:06:58","guid":{"rendered":"https:\/\/digileaders.com\/?p=35623"},"modified":"2024-11-25T13:34:09","modified_gmt":"2024-11-25T13:34:09","slug":"transforming-government-4-approaches-to-overcome-legacy-exit-challenges","status":"publish","type":"post","link":"https:\/\/digileaders.com\/transforming-government-4-approaches-to-overcome-legacy-exit-challenges\/","title":{"rendered":"Transforming government: 4 approaches to overcome legacy exit challenges"},"content":{"rendered":"

Governments worldwide dedicate a significant portion of their IT budget to maintaining legacy technology systems. This can pose security and operational continuity challenges and governments seek to address this challenge.<\/p>\n

For example, the cost to the UK government of maintaining legacy IT is\u00a0estimated to be around 50 percent (or \u00a32.3 billion) of its current IT spending<\/a>. The UK government\u2019s\u00a0Roadmap for digital and data 2022-2025<\/a>\u00a0acknowledges the challenge that legacy IT poses.<\/p>\n

Amazon Web Services (AWS)<\/a>\u00a0public sector government transformation specialists researched what technology leaders in government and in the highly regulated private sector believe their main IT challenges are. There were interviews with senior executives from nine UK government departments as well as 16 CIOs or CTOs of Fortune 500 companies in heavily regulated industries like finance. This qualitative research was further validated through quantitative studies across Germany, Spain, and Poland, drawing on a sample size of 512 participants to ensure cross-market relevance and applicability. This post summarizes the insights and suggests four approaches to consider.<\/p>\n

<\/h3>\n

Factors that shape legacy IT<\/h3>\n

Whether in the private or public sector, legacy modernisation is challenging for organisations that have a long operating history reliant on in-house systems and applications. In the 1980s and 1990s, a lack of appropriate IT solutions meant they developed bespoke software and systems on mainframe platforms to manage their core business. These systems also became integral to managing aspects such as business processes, security protocols, and legislative changes, often without comprehensive documentation. This made it challenging for these organisations to modernise because of the implied threat to business continuity.<\/p>\n

Government and private sector organisations have recently recognised the shift of IT from a support role to a driver and facilitator for secure, efficient, data-driven, and innovative operations. However, in the private sector the CEO typically owns the technology vision whereas in government organisations, CIOs and CTOs must secure buy-in and funding from various departments to drive the technology strategy forward. This impacts the priority status of legacy IT remediation efforts.<\/p>\n

 <\/p>\n

Four blockers to legacy IT exit<\/h3>\n
    \n
  1. Moving targets<\/strong> \u2013 Government agencies and private sector companies operating in highly regulated industries face regular legislative changes. They must prioritise compliance requirements, even during the process of modernisation. Implementing these changes can impact their systems and lead to the accumulation of technical debt. As a result, plans require continuous adjustments. As one private sector leader stated: \u201cTiming matters greatly \u2026 if a regulatory change hits your unmodernized system when you\u2019re modernizing it, you can\u2019t complete on time. That sets your modernization back because you\u2019re now modernizing something different.\u201d<\/li>\n
  2. Diverse business practices and needs<\/strong>\u00a0\u2013 In government departments, technology solution development driven by ad-hoc requests from business partners to align with their specific processes and legislative requirements can lead to multiple versions that address the same outcome. This leads to inefficient use of resource and makes it challenging to scale remediation efforts. As one government leader stated:\u00a0\u201cWe try to build shared products that can support multiple services\u2026 I am not convinced that we do that very well. \u2026we can invest in common elements and try to reuse them\u2026. we do try to reuse as much as possible, but it\u2019s really hard because it requires careful architecture.\u201d\u00a0<\/em>On the other hand, in heavily regulated private sectors, organisations enforce the adoption of standardised business processes, solutions, and documentation, and so can achieve scale in their modernisation efforts.<\/li>\n
  3. Potential risks of system gaps<\/strong> \u2013 Legacy systems can be opaque and the business rules ingrained within them are largely undocumented. There is uncertainty about whether these systems will function in the same way on the new platform and this poses a significant risk to business continuity. These factors act as blockers to modernisation. As one government leader stated:\u00a0\u201cEnsuring a smooth transition is a major challenge because legacy systems are very complicated and have complex dependencies and they are not documented.\u201d<\/em><\/li>\n
  4. Attracting and retaining technology talent<\/strong> \u2013 Government organizations face difficulties in attracting and retaining technology talent. This challenges their ability to resource work on legacy remediation efforts. In addition, mainframe system modernisation requires talent with specialised skillsets that are scarce. As one government leader stated:\u00a0\u201cThe people with the skills or even with the desire to learn the skills involved in either supporting or building these legacy platforms, or even delving into the codes and analysing how they work, are dwindling\u2026 these are the things that are not easy to find skills in the market for. \u2026 \u2026 some of the experts we have are in their 70s.\u201d<\/em><\/li>\n<\/ol>\n

    <\/h3>\n

    Four approaches to tackle legacy IT<\/h3>\n

    While there are no simple solutions, the research points to four overarching approaches that can help governments tackle legacy modernisation more effectively.<\/p>\n

      \n
    1. Reframe legacy IT<\/strong> \u2013 As an organisational challenge, rather than a technology problem, senior leadership is responsible for the vision and can help secure resources, talent, and ongoing commitment.<\/li>\n
    2. Implement standardisation <\/strong>\u2013 Standardised business processes, solutions, and documentation can enhance resource management and modernisation efforts, reduce risks, and improve scalability.<\/li>\n
    3. Establish accountability mechanisms<\/strong> \u2013 Mechanisms designed to monitor modernisation progress and associated expenditure can hold the organisation accountable, even when leadership or policy changes are frequent.<\/li>\n
    4. Leverage experts and AI solutions<\/strong> \u2013 Experts can help organisations make trade-offs based on their priorities to develop the best strategy. Additionally, they can advise on AI solutions that can augment modernization efforts, thereby accelerating and scaling the efforts.<\/li>\n<\/ol>\n
      \n

      Read More Regulation <\/i><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      Governments worldwide dedicate a significant portion of their IT budget to maintaining legacy technology systems. This can pose security and operational continuity challenges and governments seek to address this challenge. For example, the cost to the UK government of maintaining legacy IT is\u00a0estimated to be […]<\/p>\n","protected":false},"author":51,"featured_media":35625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"class_list":["post-35623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","topic-data-decision-making","topic-productivity-innovation","topic-government"],"acf":[],"yoast_head":"\nTransforming government: 4 approaches to overcome legacy exit challenges | Digital Leaders<\/title>\n<meta name=\"description\" content=\"Governments worldwide dedicate a significant portion of their IT budget to maintaining legacy technology systems.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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