Why Legacy Programming Languages Can Still Bring Business Benefits

While many software developers are drawn towards cutting-edge frameworks and newer programming languages, there remains a significant number of companies that rely heavily on legacy systems. These systems often run on long-supported platforms and are developed using outdated programming languages. Despite their age, these legacy systems can offer substantial business benefits. In this article, we'll explore the advantages of using outdated programming languages like COBOL, and why many companies are still dependent on them.

The Extensive Market for Legacy Systems and COBOL

The market for legacy systems is vast and diverse, particularly among industries that have had little need for major technological advancements. This is especially true in sectors such as banking and finance, where many critical operations still rely on COBOL. COBOL, which stands for Common Business Oriented Language, has been around since the 1960s and is still widely used in these industries due to its ability to handle large amounts of data and its stability.

COBOL’s Continued Relevance in Banking and Finance

One of the key reasons COBOL remains relevant is its utilization in banking and finance operations. These industries have traditionally used COBOL for processing transactions, maintaining records, and managing large databases. It's estimated that over 70% of critical business applications in the financial sector still run on COBOL. This persistence is due to several factors, including the language's robustness, reliability, and the sheer volume of data it can handle.

Solving a Talent Crisis

However, there's a growing concern about the declining workforce of COBOL experts. Many skilled COBOL programmers are aging, with many nearing retirement. This has created a significant talent shortage, with a rapid decline in the number of new programmers entering the field. For instance, the average COBOL programmer is over 50 years old, and it is estimated that mass retirements will occur in the next decade. This talent shortage is a significant challenge for companies that rely on COBOL, as it may result in difficulties in maintaining and updating legacy systems.

Attractive Career Opportunities

Despite this challenge, there are still numerous career opportunities for COBOL programmers in the current market. Companies are willing to pay well to fill the gaps in their COBOL workforce. For example, the average salary for a COBOL job in the United States is around $85,000, which is significantly higher than the average salary for other programming roles. This salary is a testament to the value that COBOL programmers bring to businesses, as they are skilled at maintaining and modernizing a critical aspect of the company's IT infrastructure.

Reasons to Continue Using Legacy Systems

For companies that rely on legacy systems, there are several compelling reasons to continue using them. First, these systems are often highly reliable and stable. They have been battle-tested over many years and can handle high volumes of transactions without failure. Second, they can integrate well with other modern systems, allowing for the gradual modernization of the overall IT architecture. Lastly, these systems often contain valuable historical data that is difficult to re-create or replace. Thus, they remain an integral part of many organizations' IT landscapes.

Conclusion

While it might seem counterintuitive to stick with an outdated programming language like COBOL, there are real and significant benefits to doing so. The persistence of legacy systems and COBOL is driven by their reliability, integration capabilities, and the valuable data they contain. Despite the challenges posed by a growing talent shortage, the demand for skilled COBOL programmers remains high, making it a lucrative and valuable career path. In the current technological landscape, it is important to recognize and value the continued relevance of legacy systems and the professionals who maintain them.