New Delhi, Oct. 27 -- The Amazon Web Services (AWS) outage last week can serve as a reminder that even the most reliable public clouds can stumble. For global enterprises, it reinforced a quieter truth: the mainframe-the decades-old computing workhorse-remains indispensable.
Once dismissed as relics of the past, mainframes are regaining significance as firms modernise without dismantling the legacy systems powering their mission-critical workloads.
"Mainframe is not dying; it is evolving," says Rakesh Ravuri, Chief Technology Officer and Senior Vice President of Engineering at Publicis Sapient. "Clients want agility and cloud integration but cannot afford to replace the core overnight."
Over 70% of Fortune 500 companies still rely on mainframes for core operations, particularly in banking, financial services, telecom, and retail. IBM estimates that more than 90 of the world's top 100 banks process billions of secure transactions daily on mainframes..
Indian IT majors such as TCS, Infosys, Wipro, HCLTech, and Tech Mahindra continue to support mainframe-heavy clients across North America and Europe. These firms are hiring engineers proficient in COBOL, JCL, and DB2-while combining those skills with expertise in DevOps, AI, and API integration.
Skills gap meets opportunity
The resurgence brings a familiar challenge: a widening skills gap. Most veteran mainframe programmers are nearing retirement, while universities have shifted focus to Python, Java, and cloud computing. A report by ISG found that 60% of enterprises face shortages in mainframe talent, particularly for modernisation projects.
To bridge this, companies are investing in large-scale skilling initiatives. IBM's Z Xplore programme, for instance, partners with Indian universities and IT firms to train young engineers in modernisation tools such as Linux on Z and AI-enabled automation. Firms are also reskilling internally. "It's more cost-effective to train existing staff than recruit externally for such niche skills," says an HR head at a mid-sized IT firm. The aim is to create a hybrid workforce fluent in both COBOL and cloud.
India's mainframe edge
India has emerged as a global hub for mainframe modernisation. Once limited to maintenance, Indian teams now lead containerisation, API enablement, and DevOps integration for global clients.
US-based managed services provider Ensono has made India its largest talent base, with 60% of its business tied to mainframe services. "For some clients, 60-80% of revenue flows through mainframe systems," says Jeff VonDeylen, CEO of Ensono. "The demand for modernisation amid a global skills shortage has made India indispensable."
Ensono's Mainframe Academy trains both fresh graduates and mid-career professionals, boasting over 90% retention among its alumni.
Modernisation and market dynamics
Mainframe modernisation is now a key growth area for IT services. According to Kyndryl, the world's largest mainframe service provider, enterprises report ROI of 288-362% from modernisation projects spanning integration, cloud migration, and on-mainframe optimisation."Mainframe has become the AI-fuelled catalyst of hybrid enterprise strategies," said Hassan Zamat, Global Practice Leader at Kyndryl. "Organisations are modernising to unlock value while preserving resilience and security."
Still, 70% of companies struggle to find multi-skilled mainframe talent, while 74% depend on third-party partners. Nearly all (94%) said regulatory and security concerns strongly influence their modernisation strategy.
The compensation catch-up
After years of stagnation, mainframe professionals are commanding premium pay. Mid-level developers in India now earn 15-20% more than peers in Java or .NET roles, while senior architects bridging mainframe and cloud earn significantly higher.
"There's a perception that mainframe is old school," said Anil Kumar Ethanur, co-founder of Xpheno, a Bengaluru-based staffing firm. "But it's one of the most stable and rewarding career paths for those with the right mix of legacy and modern skills."
Balancing modernisation with continuity
Not every enterprise is rushing to abandon the mainframe. Firms such as Mirae Asset Sharekhan are shifting to microservices-based architectures for scalability and speed, but continue to rely on mainframe cores for high-volume transactions. "It's about coexistence, not replacement," believes Madhusudhan Warrier, CTO of Mirae Asset Sharekhan.
Paramjeet Singh Bhasin, VP at Tech Mahindra, wrote in a blog that the mainframe transition should focus on re-platforming and hybrid architectures that leverage mainframe strengths while integrating with cloud services. This approach, he said, helps firms maximise IT investments while gaining agility.
While public clouds remain vital for innovation, mainframes continue to form the secure, mission-critical backbone of enterprise computing. As one Bengaluru-based developer puts it, "Mainframes are like the heart of the enterprise-you can't just rip it out overnight."
For Indian tech professionals, the message is clear - as AI and cloud reshape IT, mainframe fluency is emerging as the comeback skill of the decade.
Published by HT Digital Content Services with permission from TechCircle.