Legacy Systems Definition: Legacy systems utilize outmoded programming languages, software and/or hardware that typically are no longer supported by the respective vendors.
The issue: Legacy systems persist because of the expense, effort and potential risk of business interruption associated with the movement of data and key business processes to more advanced and contemporary technologies. Legacy systems, however creaky, are typically viewed by non-technical executives as tried and true technology, and thus have the power of inertia behind them.
Many leading financial services firms are heavily reliant on decades-old legacy systems. Further complicating the situation, financial firms that have been built through a series of mergers often must manage a variety of incompatible legacy systems inherited from their predecessor organizations.
In general, legacy systems tend to be given inadequate resources for their proper maintenance, even when an upgrade to contemporary technology is not being contemplated seriously. Oftentimes, non-technical executives tend to assume that they can continue to run on the cheap, and underestimate the risks of taking this approach.
Job opportunities: As older information technology professionals retire, it becomes increasingly difficult for the firms that still run legacy systems to find replacement talent with the requisite skills. Ironically, even in firms where such legacy systems are mission-critical (e.g., when they are necessary for closing the daily books, generating client trade confirmations, producing client account statements, etc.), IT professionals with the latest skills are the most sought after.
In sum, while IT professionals with outdated skills theoretically should find ample opportunities within the financial services industry, given the persistence of legacy systems, this is not necessarily the case. To maintain employability, keeping current with technological developments is critical, even for positions in which they may not be needed.
