Legacy IT hinders Singapore firms as 66% report app limits

IDC study shows high failure rates in modernisation despite strong digital leader performance.

Singapore organisations are reporting stronger legacy infrastructure constraints than the regional average, according to the MongoDB APAC IDC Report on ASEAN digital transformation.

The study found that 66% of Singapore organisations say their existing IT architecture makes it impossible to build new applications, compared with 50% across ASEAN.

Despite this, a group of digital leaders in Singapore is showing stronger performance outcomes, with 72% generating about three times more digital revenue than mainstream peers who reported a 23% figure.

Software development challenges in Singapore are led by outdated database systems that cannot support AI workloads and data management issues such as poor data quality and lack of defined processes with both reported by 32%. Gaps between software teams and business units account for 31%.

On AI adoption, 44% of Singapore organisations cite support for new AI initiatives as a key driver for modernisation, compared with 55% across ASEAN.

The report also found that 96% of Singapore organisations have experienced failed modernisation efforts, largely linked to siloed and poor-quality data. Across ASEAN, the figure stands at 92%.

Amongst higher-performing organisations, 68% of Singapore “leaders” run multiple modernisation programmes as part of ongoing efforts to address legacy constraints, broadly in line with the ASEAN average of 67%.