Thu Sep 12 04:51:00 UTC 2024: ## Mainframe Modernization Booms, But Skills Gap Threatens Growth

**New York, NY** – While mainframe modernization projects offer substantial returns on investment, reaching as high as 225%, a significant skills gap is hindering widespread adoption, according to a new report by Kyndryl.

The survey, which polled 500 IT and business leaders in mid-sized and large organizations, revealed that while moving off the mainframe yielded a 12% profit increase, modernizing mainframe systems resulted in a 9% profit boost. Integrating mainframes with other enterprise systems delivered a 10% profit growth.

“Mainframes continue to occupy a central role in the hybrid world,” said Petra Goude, global practice leader for core enterprise and zCloud at Kyndryl. “They’re evolving to serve new use cases, with AI and security increasingly influencing modernization plans.”

The report highlights a growing trend: 86% of respondents are rapidly adopting AI and generative AI (GenAI) to accelerate their mainframe modernization efforts. A third of respondents indicated that the mainframe has become a foundation for running AI-enabled workloads, while almost half aim to utilize GenAI to transform critical mainframe data into actionable insights.

However, the survey uncovers a significant hurdle: a shortage of mainframe skills. 53% of new entrants lack the necessary knowledge, while 49% of organizations are facing a wave of retiring mainframe experts, further exacerbating the skills deficit. This shortage poses a major challenge to successful mainframe modernization initiatives, with 28% of respondents citing a lack of skills as the main barrier to effective modernization.

AI offers a potential solution. GenAI can streamline legacy code conversion, uncover dependencies between applications, and even automate technical documentation creation. This, in turn, can help address the skills shortage and ease the transition process.

But even here, challenges remain. 43% of respondents lack the necessary skills to effectively utilize AI and GenAI. “We’re worried about a shortage of the requisite skillset required to navigate and implement complex technologies effectively,” commented a US retailer featured in the report. “Finding individuals proficient in both mainframe systems and cutting-edge AI development is a very difficult task.”

The report serves as a crucial reminder: while mainframe modernization holds immense promise, organizations must address the skills gap head-on. Investing in AI training, developing internal talent, and partnering with experienced consultants are essential steps in unlocking the full potential of mainframe modernization.

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