Among the key elements that were foundational in propelling the Industrial Revolution during the 18th century were identical and interchangeable parts because they enabled mass production, reduced costs, and simplified repairs. This innovation transformed manufacturing from a craft-based system to a highly organized and scalable industrial system. The factory model which emerged during this period transformed how goods were made, replacing the cottage industry model. Over time, it evolved into a well-structured system focusing on specialization, standardization, and repeatability, making manufacturing more mechanized while ensuring faster, more efficient production.

Similarly, in today’s world where 90% of businesses are hindered by legacy software applications, modernization has become essential to avoid obsolescence. With the application modernization services market projected to grow at 14.8% CAGR by 2029, enterprises must transform legacy applications into modern, agile, and scalable systems.

However, 79% of application modernizations fail to meet their objectives due to complexity, risk, cost, and challenges with refactoring. This underscores the need for a structured and rationalized approach that leverages the replacement technologies’ cloud-native, modern UIs and code-minimizing capabilities. HTC’s Software Modernization Factory solution revolutionizes application modernization in a repeatable, risk-minimizing, cost-effective, and scalable manner.

Let’s understand it better.

Blueprint for Modernization

As in the process of standing up of a factory that makes physical objects (e.g. automobiles, phones, etc.) each phase of HTC’s application modernization framework builds on the previous phase. This results in a fully functioning Software Modernization Factory that produces cloud-native applications in a high-quality, predictable, and cost-effective manner, ensuring a smooth transformation from legacy to modern systems.

In the Startup/Foundation phase, legacy systems are decomposed to identify redundancies and dependencies, leading to the identification of the appropriate platforms for each application. This phase involves laying the foundation of the software factory by estimating the project scope, drafting user stories, assessing the availability of reusable components, and creating detailed plans of action. By mapping these out, businesses gain clarity before the transformation begins.

In the Operationalization Phase, the software modernization factory is operationalized so that it has the necessary components, processes, and resources to be able to produce high-quality applications in a consistent and repeatable manner that is in keeping with the client’s reference architecture. The focus is on developing reusable components, employing repeatable DevOps processes for traceability, recalibrating plans and estimates, and developing interface connectors, schemas, and processes that bridge old and new systems. Additionally, the current SDLC processes are refined, and supporting artifacts are developed, setting the stage for efficient and ongoing execution in the upcoming Factory/Production phase.

The Factory/Production phase is where transformation takes full flight, i.e. the Software Modernization Factory is up and running with one or multiple development teams working in parallel. Agile methodologies guide the processes, with application modernization tasks executed in multiple 2-week sprints. During this phase, whose duration depends on how many applications are being modernized, the focus is on recomposing and refactoring applications by leveraging the inherent capabilities of modern platforms, refining product backlogs, and creating comprehensive training documentation. Continuous integration and deployment (CI/CD) practices further accelerate delivery timelines. By the end of this phase, legacy systems are replaced with modern solutions, ready for deployment and data migration.

The modernization effort ends with the knowledge transfer and support phase, empowering businesses to manage their new systems independently. Detailed documentation and training sessions ensure the client IT teams are proficient in managing and supporting the newly modernized applications, and being able to create their cloud-native applications on their own–utilizing the Software Modernization Factory framework on an ongoing and continuously improving basis. For clients seeking continued support, HTC’s managed services provide ongoing monitoring, governance, and improvements. This final phase guarantees a smooth transition and long-term sustainable success.

The Benefits of a Software Modernization Factory

A phased and well-defined Software Modernization Factory framework offers numerous advantages for businesses and their IT teams. To begin with, by reusing components and optimizing timelines, companies can minimize redundancies and reduce development and support expenses. Moreover, established processes, automation, and continuous integration facilitate accelerated delivery cycles. What might take months with a traditional approach can now be achieved in weeks, enabling enterprises to bring innovations to market faster.

Along with faster release speeds and reduced development costs, software quality also sees a marked improvement. By incorporating testing and monitoring at every stage, potential issues are identified and resolved early. Additionally, the agile development approach ensures scalability and flexibility, enabling software solutions to adapt and evolve with business needs. Finally, the Knowledge Transfer phase simplifies ongoing maintenance and reduces long-term costs.

Downstream Opportunities to Look Out For

Once modernization is complete, businesses unlock downstream opportunities that enhance the value of their modernized applications. For instance, improved systems enable more reliable application and production support, alongside managed services and monitoring, ensuring continuous updates, performance optimization, and efficient issue resolution. Additional opportunities include regular maintenance, CI/CD and testing automation as a service, cost-effective and rapid customizations with low-code platforms, team upskilling, security and compliance management, predictive analytics, and support for scaling low-code solutions.

Unmatched Expertise That Sets Us Apart

HTC stands out as a trusted partner in software modernization, with its Decompose-Recompose Software Modernization methodology and Agile Software Modernization Factory framework which allows for detailed analysis and seamless transformation of legacy systems. To ensure precise planning and execution, we utilize a high-accuracy estimation methodology that virtually eliminates cost overruns and aligns stakeholder expectations. Furthermore, our reusable components approach significantly reduces development time and cost.

We simplify migration processes with content migration accelerators and our experience with third-party tools such as Sharegate, Quest, SysTools, etc. With a proven track record spanning all major verticals, our consultants have successfully executed Microsoft 365 and Power Platform projects across 50+ countries, supporting millions of users.

Software Modernization Factory in Action

We assisted a Top 10 US bank in modernizing dozens of legacy applications and migrating them to their new Microsoft stack.

A Race Against Time to Modernize

The bank’s CIO set a “drop dead” date for completion of the project. Over 40 internal banking applications, ranging from medium to high complexity, needed to be rebuilt and integrated with the bank’s new Microsoft technology stack in less than 15 months. The client aimed to minimize risk, coordinate efforts across multiple business units, and deliver numerous individual projects on time.

Driving Change with a Tailored Approach

HTC deployed its Software Modernization Factory and Decompose-Recompose Methodologies to drive the modernization process. Through dozens of Agile-based development and implementation projects, our experts led client resources toward a complete transformation of the applications. Beyond modernization, we helped the bank stand up and establish its own Software Modernization Factory–it was trained and was able to continue running following HTC’s completion of the engagement. It enabled the bank to streamline future application modernization and development efforts. Additionally, we also established a reusable components and processes framework and trained the bank’s IT teams to minimize redundant code development and maintenance, further reducing ongoing IT support costs and complexity.

Delivering Success On-Time

Our methodology gave the client clear visibility into project progress while addressing their time commitments. Applications were modernized and migrated using automated tools, ensuring they were cloud-ready for future scalability. All projects were completed on time and within budget, with exceptionally high customer satisfaction. By the end of the engagement, the bank had fully modernized applications and had the internal capability to manage any future technology needs as well.

Driving Forward in The Digital Era

As businesses navigate digital transformation, adopting a structured approach to software modernization is imperative. By following a well-defined framework—beginning with foundational assessments and operational planning, progressing through agile production, and ensuring long-term support—HTC ensures that legacy systems are transformed into future-ready, high-performance assets that meet ROI expectations.

HTC’s Software Modernization Factory Framework modernizes applications and empowers businesses to unlock new opportunities by enabling faster development cycles and high-quality software solutions. Partner with HTC to enhance your digital capabilities and stay ahead in an ever-evolving business environment.