Leading Application Modernization Solutions Providers

A lot of banks still push payments through COBOL that's older than the folks looking after it. And honestly? It mostly works. Trouble starts when somebody asks for an API, a cloud bill that adds up, or an AI feature the board read about. Getting old software onto new platforms without shutting anything down is what people call application modernization. Below: why it gets outsourced, and who leads in 2026.

So Why Not Keep It In-House?

The COBOL crowd is retiring. Try finding a 25-year-old who's excited about CICS. Middleware licenses get pricier every year. AI pilots? Plenty of them stall on something pretty boring: the data sits in a monolith, and half the people who knew how it worked have left.

In-house teams know the business rules. What they usually don't have is time, or conversion tools tested on hundreds of similar estates. So the work goes to integrators.

What's pushing projects this year:

• SAP ECC mainstream support ends in 2027
• AI can now convert COBOL to Java, though someone still has to check it

Top Application Modernization Companies in 2026

DXC Technology

DXC moves about 65,000 workloads a year. The service has three parts: advisory with quick pilots, mainframe and legacy migration, and a "modernization factory" for apps and databases.

ISG rates it a Leader in mainframe modernization in the US and Europe. Leonardo's UK business used DXC to cut technical debt. KION Group's infrastructure costs dropped 25%.

• Rehost, rearchitect, or swap for SaaS
• AWS, Microsoft, Google Cloud partner

IBM

IBM makes the mainframe itself. Not exactly surprising, then, that it knows its way around the code on it. The go-to tool is watsonx Code Assistant for Z. Feed it COBOL, get Java services back, plus JUnit tests that check the new code spits out the same numbers as the old.

You don't have to leave IBM Z, either. Many banks convert one service at a time and keep the core where it is.

• COBOL-to-Java with test checks
• Red Hat OpenShift for hybrid setups

Deloitte

Deloitte tends to start with money, not code. Which apps cost too much? Which can simply be switched off? The migration plan comes later (AWS, Google Cloud or Microsoft, depending on the client).

ERP is a big chunk of the work, too. With ECC support running out, clients often fold custom code cleanup into their S/4HANA move. One project instead of two. Makes sense, doesn't it?

• Portfolio review first
• Big SAP and Oracle practice

Tata Consultancy Services

TCS leans on its own software. MasterCraft TransformPlus pulls business rules out of COBOL, PL/I, and AS/400 RPG code, then generates microservices. It can even rewrite JCL batch jobs as Java Spring Batch.

Then there's scale. Thousands of engineers make long mainframe exits cheaper for insurers and telecoms that can't pause for a weekend.

• Business rule extraction
• Data migration built in

Accenture

Accenture's GenWizard platform reads code in 30+ languages. For IBM mainframes, it's paired with AWS Transform, and in July 2026 the two firms published an agent-based method for mining rules from COBOL and DB2.

The selling point? A few weeks to analyze old code and mock up the new app before anyone signs a multi-year deal. CFOs tend to like that part.

• AI agents for code discovery
• Pega and MongoDB partners

Capgemini

Capgemini's a bit of a hybrid: part engineering shop, part cloud team, part operations. After buying WNS in 2025, it picked up a big business process unit too. So an app and the back office behind it can get reworked in one go.

In Europe, data sovereignty is a common reason clients call. Got a rewrite that drags billing, claims or support along with it? That's pretty much home turf.

• Cloud-native rebuilds
• Apps plus process redesign

Infosys

Infosys splits the job between two platforms. Cobalt handles cloud migration. Topaz holds the AI tools for reading old code, mapping dependencies, and automating tests.

Banking is where it shines. Infosys makes Finacle, a core banking system used worldwide, so old banking cores hold few surprises for its teams. Not a bad head start.

• Strong in core banking
• Testing and support in one contract

Final Thoughts

Each of these firms is strong in a different spot. Keeping the mainframe around? IBM and DXC make sense. Need big advisory benches? Deloitte or Accenture. TCS and Infosys win on tooling and headcount, while Capgemini suits cases where processes change along with the code. Past that, it's about the stack, the money, and how much risk the business can live with.

Before You Sign Anything

• Have they done this in your industry?
• Will old and new systems run side by side first?
• Who owns the converted code afterward?

Comparison Table

FAQ

What is application modernization?

Basically, getting old software onto newer platforms, languages or the cloud.

How long are we talking?

Weeks for one app. A full mainframe exit? Often two to five years, sometimes more.

Can AI just handle the COBOL part?

No. It saves time, sure, but a human still has to read and test what comes out.

Is rehosting enough?

Sometimes. It cuts hardware costs but keeps old code problems.

Should everything come off the mainframe?

Nope. Some stuff is cheaper and safer staying put.