HFS Horizons: Legacy Application Modernization Services, 2025

The HFS Horizons: Legacy Application Modernization Services, 2025 report is for CIOs, CTOs, and enterprise technology leaders evaluating service providers to modernize legacy applications.

Overview

The HFS Horizons: Legacy Application Modernization Services, 2025 report assesses 32 global service providers on their capabilities to re-architect legacy systems into modular, AI-driven architectures. The report applies the HFS Horizons framework, developed by HFS Research, which classifies providers as Horizon 1 Disruptors, Horizon 2 Enterprise Innovators, or Horizon 3 Market Leaders based on innovation scope and value aspiration. The assessment draws on provider briefings, reference checks with 50-plus active clients and 40-plus active partners, and HFS Pulse survey data covering 305 enterprise decision-makers.

Key findings

1. HFS names Accenture, Amdocs, Capgemini, Cognizant, EY, HCLTech, Hitachi Digital Services, IBM, Infosys, Publicis Sapient, TCS, Tech Mahindra, and Wipro as the 13 Horizon 3 Market Leaders among the 32 providers assessed, alongside 12 Horizon 2 Enterprise Innovators and 7 Horizon 1 Disruptors.
2. Higher operational costs from maintaining legacy systems topped enterprise pain points at 42%, followed by delays in digital transformation at 38% and inability to scale systems at 36%, per HFS Pulse survey data from 305 enterprise decision-makers.
3. Torry Harris migrated 362 APIs with zero downtime for Schneider Electric, delivered 80% cost savings for BT, and scaled Three Ireland’s youth brand from 24,000 to 110,000 users in 12 months.
4. Accenture’s GenAI-based bookings doubled and revenue tripled for FY25, backed by more than $3 billion invested in data and AI.
5. Enterprise clients rated providers 8.6 out of 10 for value proposition and 8.8 out of 10 for execution capabilities, while the lowest-rated providers scored just 5.0 and 6.0 respectively.

HFS finds that legacy modernization has shifted from migration-led lift-and-shift to AI-native, platform-engineered transformation tied directly to speed, cost, resilience, and new revenue. HFS assesses that Horizon 3 leaders share deep domain expertise, advanced AI capabilities, strong global delivery models, and robust ecosystem partnerships.

Research methodology

This report is based on primary research: HFS briefings with each of the 32 participating providers, reference checks with 50-plus active clients and 40-plus active partners, and HFS Pulse survey data from 305 enterprise decision-makers, fielded in 2025.

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