Application Modernization Services 2023 Market Insights™

August, 2023


Report Summary

This report identifies key demand-side trends in the application modernization services space, helping enterprises fine-tune their application modernization strategies. It provides an overview of key trends and enterprise challenges that Avasant sees as important to be highlighted in the application modernization strategies services space.

Why read this Market Insights?

Application modernization is pivotal for enterprises due to rapid technological advancements and evolving customer demands. Legacy systems often hinder agility and innovation, limiting a company’s ability to respond to market changes swiftly. The modernization of applications ensures compatibility with current technologies, enhances user experience, and facilitates scalability. This transformation also leads to increased operational efficiency, reduced maintenance costs, better data security, and improved customer engagement. Essentially, application modernization empowers enterprises to remain competitive, adaptable, and aligned with the digital era’s demands.

The Application Modernization Services 2023 Market Insights™ aids enterprises in identifying important market trends and challenges for any application modernization project that they take part in.


The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

    • Defining application modernization services
    • Key enterprise application modernization services trends shaping the market
    • Avasant recognizes 23 top-tier providers supporting the enterprise adoption of application modernization services

Demand-side trends (Pages 814)

    • Enterprises are modernizing their legacy landscapes to remain competitive in a fast-paced digital world
    • Legacy applications are limiting enterprise ability to innovate, scale, and adapt to changing business needs
    • Around 25% of traction of application modernization services is primarily seen among the banking and financial services industries
    • Emerging technologies propel enterprise application modernization beyond cloud computing’s pervasiveness
    • Enterprises and service providers are scouting ways to leverage generative AI in application modernization
    • Sustainability is at the top of mind for enterprises while modernizing outdated systems

Key contacts (Pages 16)

Read the Research Byte based on this report.

Please refer to Avasant’s Application Modernization Services 2023 RadarView™ for detailed insights on the service providers and supply-side trends.