Top Application Modernization Services Companies

The global application modernization services market size is projected to grow from USD 22.67 billion in 2025 to USD 51.45 billion by 2031 at a compound annual growth rate (CAGR) of 14.6%. The market is growing due to the increasing need for organizations to adapt to a rapidly changing business environment. In the past, businesses relied on poorly designed, inflexible, and expensive-to-maintain systems that were also costly to upgrade. These legacy systems struggled to incorporate emerging technologies, such as cloud computing and artificial intelligence, resulting in operational delays. Over the years, however, the focus of the market has shifted to alternative solutions that help organizations transform the way some of their applications work, integrate them with the current IT environment, lower costs, and enhance speed. This evolution has been significant due to the increasing strategic focus on digital transformation and innovation by organizations.

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Various globally established players, such as Oracle (US), IBM (US), Microsoft (US), AWS (US), HCL Technologies (India), Accenture (Ireland), ATOS (France), Capgemini (France), Cognizant (US), and TCS (India), are dominating the application modernization services market. To increase their market share in the application modernization services market, these competitors have used various growth methods, including partnerships, agreements, collaborations, product releases, product enhancements, and acquisitions.

IBM

IBM (International Business Machines Corporation) is a worldwide technology and consulting firm that provides solutions to its customers' business problems. The company has four primary operational segments: Software Development, Consulting, Infrastructure, and Financing. The first of these segments refers to the company's hardware and software, including cloud systems and AI systems with analytical, artificial intelligence, automated control, blockchain, and information assurance technologies. The second area of the company’s operations, i.e., consulting, includes business transformation engagements, technology consulting, and application services. This segment provides IT resources, including storage systems, servers, and even mainframes, as a means to enhance the existing IT environments of clients. This segment helps enhance the company's IT resources by providing financial solutions, such as leasing and lending, to facilitate the acquisition of new IT resources.

In the application modernization services market, IBM provides a range of services through its IBM Garage platform. The platform is designed to accommodate creative approaches tailored to the specific needs of customers. It assists organizations in the process of renewing their existing and legacy applications to achieve a quicker digital evolution of the company, create a better experience for developers, and ease the process of migrating applications to the cloud.

In the company's application modernization services portfolio for potential clients, a preliminary app readiness assessment is followed by application refactoring, repackaging, and re-platforming, utilizing containerization and DevOps pipelines. It also extends the scope of services and includes assistance in moving relevant applications to the cloud, or, following the banking crisis, app decommissioning processes. The company offers these services through the tools within its IBM Garage system.

To evaluate application portfolios, IBM relies on the Cloud Transformation Advisor tool, which helps organizations identify the most suitable modernization approach. This tool falls under the umbrella of IBM Cloud Pak for Applications, a solution that specializes in containerization software. When it comes to cloud migrations, the platforms and cloud services are provided by the IBM Cloud Migration Factory, and the applications are hosted on the IBM WebSphere Liberty platform for refactoring purposes. Other tools, such as IBM Cloud Pak for Integration, offer features like application and data integration, among others.

Accenture

Accenture is a global management consulting, technology services, and outsourcing company that was previously called Andersen Consulting. The company adds value through its strategy, which focuses on competing effectively with other firms, including strategic alliances, continuous R&D investment, and maintaining a regular training schedule for employees. The company’s operations are far-reaching, covering the entire globe, and therefore provide healthy competition to big names like Deloitte, Atos, NTT Data, IBM, and Capgemini in the provision of diverse products and services.

Accenture offers services to a wide range of industries, including aerospace and defense, chemicals, healthcare and life sciences, software and its platforms, automotive, communication and media, banking, consumer products and services, retail, and the public sector. The company's segments include Communications, Media & Technology, Financial Services, Health & Public Services, Products, and Resources.

Regarding application modernization services, Accenture offers a comprehensive solution for effective IT management. These services include service design and technical architecture consultancy, application discovery, recognition, and planning, as well as agile and DevSecOps transformation. Accenture utilizes the most advanced technologies and processes in application reengineering to repatriate applications from expensive, ongoing operational costs.

Market Ranking

The application modernization services market is highly competitive, with five main players collectively holding a 45–50% share of the total market. The top five companies — IBM, Accenture, Microsoft, AWS, and HCLTech — dominate the application modernization services market due to their strategic initiatives and significant technological investments. IBM focuses on leveraging its hybrid cloud and AI-driven solutions to help enterprises modernize legacy applications efficiently. Accenture emphasizes end-to-end modernization services, combining cloud migration, DevOps, and automation frameworks to accelerate business transformation. Microsoft drives modernization through its Azure platform, offering cloud-native development, containerization, and integration with existing Microsoft enterprise solutions. AWS leads with its comprehensive cloud services, serverless architecture, and container management tools, enabling scalable and flexible modernization. HCLTech focuses on application re-platforming, cloud-native development, and digital transformation frameworks, offering tailored solutions to meet industry-specific modernization needs.

Related Reports:

Application Modernization Services Market by Service Type (Cloud Application Migration, Application Re-Platforming, Post Modernization), Application Type (Legacy, Cloud-hosted, Cloud-native) - Global Forecast to 2031

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