Federal Government IT - The Struggles of Legacy Systems

Federal agencies and contractors find themselves caught in a tug-of-war between innovation and inertia. While mission demands grow more complex and cybersecurity threats evolve at lightning speed, much of the government still runs on outdated IT infrastructure. Maintaining these legacy platforms drains budgets, creates security gaps, & limits agility, yet replacing them has proven notoriously difficult. The result: agencies spend the lion’s share of their IT dollars just “keeping the lights on” and leaving little room for IT modernization.

Challenges

1. Budget Crunch: Maintaining Legacy Systems

• Federal agencies spend over $100 billion annually on IT and cybersecurity, with roughly 80% going toward maintaining legacy systems—leaving just a fraction for modernization or new initiatives, per the Government Accountability Office.
• This chronic underinvestment fuels a vicious cycle: outdated systems get increasingly expensive to upkeep, further eroding available modernization funds.

2. Increased Security Risks

• Many aging systems lack modern security controls and are vulnerable to cyber threats. In March 2025, GAO found that several critical IT programs were at “significant risk” in terms of cybersecurity and privacy.

3. Weak or Incomplete Modernization Strategies

• In 2019, GAO identified 10 critical legacy systems needing modernization, yet by February 2025, only 3 had been updated. Several agencies still lack robust plans—including key components like clear milestones or system disposition strategies.
• The IRS still operates hundreds of legacy systems without a clear modernization roadmap;
• Aviation safety systems like the 105 of 138 of the FAA’s air traffic control systems rely on unsupported hardware.

4. Outdated Workforce Skills Requirements

• Legacy systems rely on outdated languages (COBOL, Fortran) and hardware platforms. With many experts retiring or unavailable, agencies face severe workforce shortages and must pay premiums for rare skill sets.

Conclusion

Legacy systems remain a core barrier in federal IT modernization—dominating budgets, exposing agencies to cybersecurity risks, and hampering operational agility. Genesys Impact can offer a critical bridge: reducing maintenance burdens through automation, enabling cloud transitions, shoring up workforce shortfalls, and accelerating modernization with transparent SLAs and smart tooling.

Want to explore how Genesys Impact can drive modernization success for your federal agency or contractor? Reach out to us today so we can discuss the specific strategies and solutions that can bring your organization into the modern age.