Why Most C-Suite IT Modernization Efforts Are Failing Miserably, Even With Billions on the Table

A split image featuring a man with glasses smiling at the camera on the left and a young man wearing headphones and a black cap, focused on a microphone on the right. In the center, an overlay shows a digital interface labeled 'Modernization Index'.

Think pouring millions into IT modernization guarantees business success? Think again. A shocking new global study reveals that while top executives are racing to modernize their IT systems, most are stumbling over the same old hurdles, including cybersecurity threats, data chaos, and skill shortages, leaving huge budgets burning with limited returns.

The report, sponsored by Rocket Software and conducted by IDC, surveyed over 800 IT decision-makers from nine countries. Their responses suggest a glaring mismatch between ambition and execution. Nearly two-thirds of C-suite leaders claim IT modernization is a high priority. Companies are planning to allocate up to 30% of their IT budgets over the next two years. But despite these lofty numbers, actual outcomes are lagging dangerously behind expectations.

The cynicism is not unwarranted. More than half of respondents identified cybersecurity as the biggest roadblock to modernization, while data quality and integration issues affect 43% of organizations. Meanwhile, 39% are struggling to train staff in essential AI and cloud skills. The more you dig into these statistics, the more it becomes clear that IT modernization without a precise strategy is often a money pit.

Operational efficiency, innovation acceleration, and customer satisfaction top the list of goals, but only a small fraction of organizations are achieving them. Firms with mature, integrated strategies across infrastructure, applications, data, security, people, and AI readiness are seeing double the gains of their peers. The rest are stuck, weighed down by technical debt, data silos, and a chronic shortage of qualified personnel.

So, what is going wrong? Many organizations are chasing flashy technologies, such as AI, automation, and hybrid cloud, without embedding these tools in a structured roadmap. As Michael Curry, President of Data Modernization at Rocket Software, explains, “True success comes when investments follow a clear, comprehensive modernization plan.” The takeaway is that technology alone is not enough, and strategy is everything.