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Asia Pacific Firms Act on Mainframe Needs, Possibilities
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Asia Pacific Firms Act on Mainframe Needs, Possibilities


Companies in the region take different approaches to optimizing legacy systems or modernizing software based on requirements, ISG Provider Lens™ report says

SYDNEY–(BUSINESS WIRE)–$III #ApplicationsModernization–Both mainframe optimization and application modernization are major trends among enterprises in Asia Pacific, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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ISG %28R%29 Logo

The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for Asia Pacific finds that companies in the region (which for this report covers Australia, New Zealand, Southeast Asia and India) have had their sights set on digital transformation and cloud computing since before the COVID-19 pandemic. However, in many cases, they have since realized they can continue to derive value from mainframe technologies far into the future.

“After discovering the true costs of migration and cloud computing, enterprises in Asia Pacific are taking a range of different approaches to modernization,” said Michael Gale, partner and regional leader, ISG Asia Pacific. “They recognize that the most important thing is placing the right workload on the right platform.”

Many companies cannot function without their mainframe environment because they rely on its reliability, availability and security for business-critical functions, the report says. Depending on technical and business requirements, they are choosing whether to host particular applications on the mainframe, take them off the mainframe completely or use cloud/mainframe integration.

Most enterprises that use large, complex mainframes for strategic functions retain legacy applications but enhance them, ISG says. Their modernization playbooks may include using microservices, APIs or agile development processes. Companies with smaller, less complex mainframe implementations are more likely to reduce or eliminate legacy technology. These projects are often easier for organizations in Southeast Asia and India because they use more recent mainframe technologies.

Mainframe transformation has increased demand in the region for new and updated products, the report says. Enterprises want to take advantage of on-demand cloud computing and enterprise-wide DevOps methodologies for cost savings and faster time to market. However, embracing DevOps in what has been a mainframe-focused organization also requires cultural change.

To reduce the costs and risks of maintaining mainframes, a growing number of enterprises in Asia Pacific are embracing a mainframe-as-a-service (MFaaS) model, in which a service provider assumes full responsibility for upkeep and enhancement of the infrastructure, ISG says. MFaaS shifts mainframe costs from capital to operational expenditures, giving companies the freedom to concentrate on their core competencies while preparing for digital transformation.

“Companies in this region that had expected mainframes to become obsolete have found lasting value in their resilience and capacity,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients integrate legacy systems into hybrid cloud environments.”

The report also explores other mainframe trends in Asia Pacific, including companies’ rising interest in using generative AI to boost productivity, and growing demand for mainframe operations management services that harmonize with comprehensive service management strategies.

For more insights into the mainframe-related challenges facing Asia Pacific enterprises, including a skills shortage and the difficulty of integrating mainframes with generative AI applications, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for Asia Pacific evaluates the capabilities of 36 providers across five quadrants: Mainframe Optimization Services, Application Modernization Services, Mainframe as a Service (MFaaS), Mainframe Operations and Mainframe Application Modernization Software.

The report names Wipro as a Leader in four quadrants. It names HCLTech, Infosys, Kyndryl and TCS as Leaders in three quadrants each. Capgemini is named as a Leader in two quadrants. Accenture, AWS, DXC Technology, Google, IBM and TMaxSoft are named as Leaders in one quadrant each.

In addition, Capgemini is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. DXC Technology, Kyndryl and mLogica are named as Rising Stars in one quadrant each.

In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among mainframe service and solution providers. HCLTech earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Mainframes — Services and Solutions report for APAC is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Contacts

Press:


Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com




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