GenAI, agentic AI reshape transformation methods, ISG Provider Lens^® report says

Enterprises in the U.S. are adapting mainframe systems to current requirements with a focus on business processes and AI-enabled automation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Mainframes ― Services and Solutions report for the U.S. finds that enterprises are shifting modernization strategies toward business-led transformation for improved agility, resilience and long-term efficiency. Increasingly, they use AI to interpret legacy systems while maintaining operational continuity in complex and regulated environments.

"U.S. enterprises are redefining modernization by focusing on business outcomes rather than technical conversion alone," Bill Huber, partner, Digital Platforms and Solutions, at ISG. "This approach allows organizations to modernize critical systems while preserving stability and compliance."

Companies in the U.S. are adopting an approach that uses generative AI to extract and validate legacy business rules before changing applications, the report says. This method enables subject matter experts to confirm application logic and maintain functional equivalence through parallel automated testing. It reduces the risks of transformation while supporting both continued use of mainframes and migration to cloud-native architectures. Through this approach, organizations are making more accurate modernization decisions and better aligning the process with business priorities.

Many U.S. enterprises are embedding AI-driven operations and automation into mainframe environments to improve resilience and reduce operational disruption, ISG says. AI for IT operations (AIOps), enhanced with generative AI, provides predictive monitoring, anomaly detection and self-healing to reduce downtime and manual intervention when problems arise. Companies are combining these capabilities with strengthened security practices, including encryption, multi-factor authentication and IBM Resource Access Control Facility (RACF) hardening. Together, these measures improve system reliability and security in hybrid environments.

Organizations in the U.S. are standardizing DevOps pipelines and API-enabled architectures to integrate mainframes with distributed systems, the report says. CI/CD pipelines automate development, testing and deployment, enabling teams to release code faster and with greater consistency. Many companies are exposing core functionality through APIs and adopting microservices for hybrid execution. These changes increase flexibility and allow incremental modernization that does not disrupt critical workloads.

"U.S. enterprises are combining AI with structured modernization practices to achieve faster outcomes while maintaining control," said Pedro L. Bicudo Maschio, lead author of the report. "Service providers play a key role in enabling secure, phased transformation that balances innovation with operational stability."

The report also explores other mainframe modernization trends in the U.S., including the adoption of governance-first frameworks with human-in-the-loop checkpoints and hiring and training programs to mitigate talent shortages. It includes one quadrant with a global scope, covering Mainframe Application Modernization Software providers.

For more insights into the mainframe-related challenges faced by U.S. enterprises, along with ISG's advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The 2026 ISG Provider Lens Mainframes ― Services and Solutions report for the U.S. evaluates the capabilities of 56 providers across four quadrants: Mainframe Technology Consulting, Mainframe as a Service, Application Modernization Services and Mainframe Application Modernization Software (Global).

The report names DXC Technology, Kyndryl, TCS and Wipro as Leaders in three quadrants each. It names Capgemini, Cognizant, Ensono, HCLTech, Infosys, LTM and Tech Mahindra as Leaders in two quadrants each. Accenture, Amdocs, AveriSource, AWS, CPT Global, FNTS, Google, Heirloom Computing, Hexaware, mLogica, Mphasis, NTT DATA, Rocket Software, TmaxSoft and TSRI are named as Leaders in one quadrant each.

In addition, Atos, CloudFrame, Coforge, FNTS and HCLTech are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG's definition — in one quadrant each.

In the area of customer experience, mLogica is named the global ISG CX Star Performer for 2026 among Mainframe Services providers. mLogica earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from DXC Technology, FNTS, Hexaware, Kyndryl and TSRI.

The 2026 ISG Provider Lens Mainframes ― Services and Solutions report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Press Contacts:

Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com

Eric Arvidson, Matter Communications for ISG

+1 978-518-4542

isg@matternow.com

U.S. Enterprises Accelerate Mainframe Modernization