Thoughtworks and IDC Report Reveals Most Organizations Trapped in Costly Legacy Cycles; Only 12% Achieve True AI-Driven Operations

CHICAGO, Feb. 24, 2026 /PRNewswire/ -- Thoughtworks, a global technology consultancy integrating design, engineering and AI to drive digital innovation, today released findings from its global report, titled; "Modernization Is No Longer a Project: AI-Enabled Managed Services for Continuous Change." The data reveals a critical disconnect between AI adoption and maturity in IT operations. The report delves into what separates leaders in application operations from those stuck in an ineffectual 'intermittent' approach to modernization.

While AI adoption is widespread among large enterprises, operational maturity lags significantly behind. While nearly nine in 10 organizations have adopted AI tools, the vast majority (approximately 90%) remain stuck in reactive modernization cycles. Only 12% have managed to break free and transition to a fully continuous, AI-driven optimization model.

The core modernization advantage

Mature organizations are abandoning one-off initiatives in favor of a continuous modernization engine. These organizations are leveraging AI to drive measurable gains:

• Release velocity: Achieving 45% faster product and feature releases.
• AI-led security: Shifting to AI-driven vulnerability management, realizing a 48% reduction in risk exposure.
• Architectural scalability: Improving systems maintainability and scalability (36%) while aligning IT more closely to business goals (34%).

"The era of intermittent application modernization is no longer sustainable," says Josh Burks, SVP and Global Leader of Managed Services at Thoughtworks. "Our research with IDC confirms that a reactive, project-based modernization approach leads to high costs, security vulnerabilities and significant people impact. To maintain a competitive advantage and deliver AI that works, organizations are moving away from risky one-off interventions and toward a model of continuous modernization."

"Enterprise security and operations are rapidly becoming AI-led, yet most organizations lack the maturity to realize the expected benefits," says Jennifer Thomson, AVP Global Services Insights at IDC. "The shift we are seeing is a move toward a 'human-in-the-loop' strategy where human expertise is reserved for strategic architectural decisions and complex problem solving. By focusing on pipeline intelligence and automated security, organizations can finally bridge the gap between IT operations and business objectives, replacing outdated headcount pricing with shared-risk models that incentivize speed and scale."

A new commercial reality

As organizations struggle to break free from reactive maintenance, the report highlights that AI is moving from promise to practice in application operations; however, success will be defined by proof of value, data quality and a fundamental realignment of people and processes. Organizations are moving away from people-heavy, headcount-based pricing in favor of:

• Innovation milestones: 56% of organizations want contracts tied to continuous improvement mandates.
• Shared risk: 43% are seeking risk-reward sharing models for modernization initiatives.
• Value-based KPIs: Success is increasingly measured by speed, resilience and customer experience rather than simple uptime.

To bridge the gap, Thoughtworks outlines a 180-day action plan focused on proving value through pipeline intelligence, AI-guided remediation and upskilling teams in AI/ML literacy, also identified as the top critical skill across all sectors.

Supporting resources:

• Read more about the Thoughtworks Managed Services.
• Keep up with Thoughtworks news by visiting the company's website.
• Follow us on X, LinkedIn and YouTube.

Methodology:
The research was conducted by IDC and surveyed 500 senior IT and digital decision-makers across the United States, the United Kingdom, Germany, and APJ, spanning large organizations (1,000+ employees) in manufacturing, finance, retail, and life sciences, with respondents primarily acting as technology decision-makers or key influencers and representing organizations that already use AI or plan to adopt it within the next two years.

About Thoughtworks
Thoughtworks is a global technology consultancy that integrates design, engineering and AI to drive digital innovation. We are over 10,000 Thoughtworkers strong across 47 offices in 18 countries. For 30+ years, we've delivered extraordinary impact together with our clients by helping them solve complex business problems with technology as the differentiator.

Media contact:

Justine Manche
VP, Brand and Communications
Email: [email protected]

Kathrin Jansing
Head of Public Relations for Europe and interim for Americas
Email: [email protected]

Michelle Surendran
Head of Public Relations for APAC and India
Email: [email protected]

SOURCE Thoughtworks