Legacy software is costing South African businesses more than they think.
According to Jacques Burger, senior business analyst at Dariel Solutions, the real danger isn’t downtime it’s the silent build-up of compliance gaps, cyber vulnerabilities, and integration drag that undermines competitiveness.
“Outdated systems aren’t just slow,” says Burger. “They’re a liability hiding in plain sight. If your software can’t adapt to regulatory change or integrate with modern tools, you’re running a risk that grows every day.”
Legacy drag: The hidden cost of standing still
Many firms only notice their systems are outdated when they fail. But by then, says Burger, the damage — from data exposure to workflow bottlenecks — is already done.
“Compliance frameworks like POPIA and the evolving King codes are constantly shifting,” he notes. “If your stack can’t flex with those updates, you’re not just behind — you’re exposed.”
Disconnected platforms also compound the issue. Manual reconciliations, duplicate data capture, and delayed reporting become standard workarounds, increasing cost and reducing accuracy.
A roadmap for renewal
Dariel advocates for a pragmatic, phased modernisation strategy rather than wholesale replacement. Burger outlines five key principles:
- Audit your stack: Identify what you have and where it breaks.
- Prioritise impact: Fix the choke points that waste the most time.
- Integrate first: Optimise data flow before replacing tools.
- Phase upgrades: Keep what works, replace what doesn’t.
- Build security in: Treat compliance and data protection as design layers, not afterthoughts.
“Quick wins free up capital and build internal momentum,” Burger says. “Modernising isn’t a vanity upgrade — it’s a business safeguard.”
The real costs lie in change management
The biggest modernisation expense isn’t software licenses — it’s change management. Testing, migration, and user alignment often account for the bulk of the budget. “Skipping proper testing to save time always backfires,” says Burger. “Rework in production is far more expensive than doing it right the first time.”
He warns that missing “unspoken requirements” from daily system users is another common pitfall: “The people closest to the work know where the real risks sit. Involving them early avoids redesigns later.”
Smart modernisation for lean budgets
For firms modernising on limited budgets, Burger suggests a hybrid investment model — tailor technology where differentiation matters (client experience, reporting, automation) and adopt standardised cloud solutions for everything else.
“Cloud-first thinking gives you scalability, enterprise-grade security, and flexibility without infrastructure overhead,” he says.
Next-gen finance and automation
AI and blockchain are emerging as the next drivers of efficiency and auditability in financial and operational systems. Used strategically, they automate reconciliation, detect anomalies, and enable fraud-proof smart contracts.
“The firms that thrive in the next decade won’t just have better tools,” Burger concludes. “They’ll have the discipline to modernise deliberately — aligning technology with strategy instead of chasing trends.”