IT leaders are throwing money away with legacy systems: Enterprises report $370 million in losses each year due to outdated tech

Technical debt has been a long-running problem for enterprise IT leaders, and new research shows it’s costing hundreds of millions of dollars each year.

A study from Pegasystems, conducted by research firm Savanta, found an array of challenges caused by technical debt is severely hampering IT modernization efforts.

Legacy transformation projects account for the largest financial hit recorded by enterprises, the study found, equivalent to nearly $134 million globally each year.

These projects are a laborious process, Pegasystems noted, requiring IT teams to overhaul outdated and often resource-intensive systems.

The time-related costs associated with legacy transformation projects was also a major factor in financial losses. Many of these projects fail, the study said, costing around