Skills Shortage Inspires New Mainframe Plans in Europe
Spurred by rising costs and a scarcity of legacy skills, a small but growing number of European enterprises are modernizing their mainframe applications or migrating them to the cloud, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe finds companies are under increasing pressure to re-evaluate their use of mainframes in the wake of pandemic-related disruptions and changing business requirements. Providers of mainframe migration tools and services in Europe have seen revenue grow an average of 20 percent in the past year, an ISG survey finds.
Enterprises are pursuing mainframe modernization despite projects taking longer than expected and, in some cases, not reaching completion, ISG says. Companies should expect a lengthy process of analyzing systems and developing a long-term migration strategy.
“Demand is high, but execution has been slow, and the number of projects is still small,” said Anna Medkouri, ISG partner, Technology Modernization, in Germany. “Large migration providers are reporting an average of 15 to 30 projects per year in Europe.”
Mainframe costs are rising due to a shortage of COBOL language skills in European countries to maintain and manage legacy systems, the report says. In addition, independent software vendors are taking advantage of mainframe dependency with expensive expert services.
The COVID-19 crisis exposed the limitations of mainframes when some government agencies in Europe could not scale their systems fast enough to respond to increased demand from their citizens, ISG says. This caused some small system disruptions, heightening interest in migrating mainframe applications to the cloud.
Enterprises across Europe are turning to multinational service providers with the increasingly rare skills needed for large mainframe projects, the report says. Unlike for most IT services providers in Europe, language and culture do not give small players a local advantage.
“In this market, the language that matters is COBOL,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Smaller companies compete by offering niche specializations and partnering with major providers.”
The report includes insights into other issues affecting enterprise mainframe strategies, including the role of hyperscale cloud providers and whether investments in modernizing COBOL are paying off.
The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe evaluates the capabilities of 42 providers across five quadrants: Mainframe Modernization Services, Mainframe Application Modernization and Transformation Services, Mainframes as a Service (MFaaS), Mainframe Operations, and Mainframe Application Modernization Software.
The report names Atos, Capgemini, Infosys, Kyndryl and TCS as Leaders in three quadrants each and DXC Technology and Wipro as Leaders in two quadrants each. Advanced, Asysco, AWS (Blu Age), Cognizant, Google, HCL, Micro Focus, TmaxSoft and T-Systems are named as Leaders in one quadrant each.
In addition, Cognizant, Fujitsu, HCL, Heirloom Computing and TCS are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.
Customized versions of the report are available from Google, Freesoft, Infosys and Kyndryl.
The 2022 ISG Provider Lens™ Mainframes – Services and Solutions report for Europe 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 800 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 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 1,300 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.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220412005332/en/
Contact information
Press:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Kate Hartley, Carrot Communications for ISG
+44 (0)20 3457 6403
kate.hartley@carrotcomms.co.uk
About Business Wire
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Alisher Usmanov Wins Legal Case Against Luxembourg’s Largest Media Group, Says Law Firm Rechtsanwälte Steinhöfel12.5.2025 15:43:00 EEST | Press release
A German court has banned Mediahuis Luxembourg S.A., the most important media holding in Luxembourg, from referring to Alisher Usmanov as the owner of the yacht Dilbar. Mediahuis Luxembourg is the leading publishing company in Luxembourg, with such assets as newspapers and online platforms, including Luxemburger Wort, Luxembourg Times and others. On May 5, 2025, the Regional Court of Hamburg ruled that the following statement published by Luxembourg Times was false and prohibited its further publication: “The luxury yacht Dilbar was seized in Hamburg’s harbour in 2022 following Russia’s invasion under EU sanctions. The yacht is owned through a company and trust by Uzbek-Russian billionaire Alisher Usmanov.” The court found the statement to be in violation of Mr. Usmanov’s rights and prohibited its distribution. In the event of non-compliance with the prohibition, Mediahuis may be fined up to €250,000 for each individual offense. Moreover, if such a fine is not enforceable, it may be re
REPLY: The Board of Directors Approves the Quarterly Report Dated 31 March 202512.5.2025 15:23:00 EEST | Press release
Today, the Board of Directors of Reply S.p.A. [EXM, STAR: REY] approved the results as at 31 March 2025. Since the beginning of the year, the Group has recorded a consolidated revenues amounting to €603.4 million, an increase of 8.9% compared to the corresponding data for 2024. All indicators are positive for the period. In the first quarter of 2025 the consolidated EBITDA was €105.3 million compared to €87.3 million in 2024, equal to 17.5% of the turnover. EBIT, from January to March, was €88.7 million (€72.1 million in 2024) and is equal to 14.7% of the turnover. The profit before tax, from January to March, was €86.9 million (€73.1 million in 2024), equal to 14.4% of the turnover. The net financial position of the Group on 31 March 2025 is also positive by 537.0 million. The net financial position on 31 December 2024 was positive for €349.1 million. “The close of 2024 and the positive start of 2025,’ said Mario Rizzante, Reply Chairman, ‘reaffirm both the solidity of the Reply model
Adtran boosts DCI capabilities with dynamic AI Network Cloud solution12.5.2025 15:00:00 EEST | Press release
Adtran today announced its new AI Network Cloud (AINC)-interconnect solution, a next-generation fiber networking platform designed to support hyperscalers, federal agencies, SLED organizations and enterprises as they scale AI services. Integrating with Dell’s AI Factory, the technology dynamically adjusts optical networking capacity to meet real-time AI workloads, enabling seamless, high-speed connectivity from data center to data center and from core to edge. By supporting tokenized, sovereign AI networks and dynamic compute allocation, the solution empowers organizations to scale AI initiatives with greater autonomy, control and cost-efficiency. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250512672981/en/ Adtran’s DCI platform now integrates with Dell’s AI Factory, enabling rapid expansion of AI services. “AI workloads are pushing existing networks to their limits and data center operators need solutions that can scale
HistoSonics Secures First Major Insurance Coverage for Non-Invasive Histotripsy Treatment for Liver Tumors With Blue Cross Blue Shield of Michigan12.5.2025 15:00:00 EEST | Press release
HistoSonics, the developer of the Edison Histotripsy System, today announced that Blue Cross Blue Shield of Michigan (BCBSM) and Blue Care Network have created a new medical policy for histotripsy of the liver. The policy covers non-thermal histotripsy using the Edison® Histotripsy System for the treatment of primary and metastatic liver tumors. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250512714050/en/ HistoSonics Edison Histotripsy System As of February 1, 2025, histotripsy is a reimbursable procedure for the non-invasive mechanical destruction of liver tumors under CPT code 0686T, giving eligible patients in Michigan early access to this groundbreaking, non-invasive, incisionless treatment ahead of the broader policy effective date of July 1, 2025. “Liver tumors are often a leading cause of death for patients with serious cancers, and it’s critical that they have access to safe, effective and non-invasive treatment o
Rochon Genova: Did You Purchase Shares of Aphria Inc. (“Aphria”) After January 29, 2018 and Hold Them Until March 23, 2018 and/or December 3, 2018?12.5.2025 15:00:00 EEST | Press release
A Settlement has been reached in the global class action against Aphria and certain of its former officers and directors regarding alleged misrepresentations made in certain of Aphria’s public disclosures released between January 29, 2018 and December 3, 2018 (the “Class Action”). Aphria and the other Defendants have denied all allegations against them. The Settlement provides for the payment by the Defendants of the total amount of CAD $30,000,000 to resolve the Class Action. The Settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by the Defendants. The Settlement has been approved by the Ontario Superior Court of Justice. The Court has appointed RicePoint Administration, Inc., d/b/a Verita Global as the Administrator of the Settlement. To be eligible for compensation, Class Members must submit a completed Claim Form to the Administrator no later than August 26, 2025. If you do not file a claim by this deadline, you will be ineligible for c
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom