Accelerating Legacy Application Modernization with IBM watsonx Code Assistant
A large public-sector social services institution operating nationwide needed to modernize decades-old COBOL and Java systems that were slowing down service delivery and increasing operational risk. Their core applications faced mounting technical debt, rising maintenance costs, and a shrinking pool of legacy-skilled developers.
Partnering with Nexright, the organization adopted IBM watsonx Code Assistant to automate code understanding, refactoring and modernization. The result: faster development cycles, significantly reduced manual effort, and safer migration to modern architectures — without disrupting mission-critical operations.
Business challenge
The organization depended on thousands of COBOL and Java programs powering citizen benefits, claims processing, and financial reporting. These systems had become difficult to maintain, and modernization initiatives repeatedly stalled because manual analysis alone could take months.
Key Challenges:
- Limited visibility into legacy systems
Fragmented documentation and decades of code revisions left teams unsure how applications were interconnected. - High risk of modernization errors
Manual code review created inconsistencies, regression issues, and extended migration timelines. - Shrinking legacy talent pool
Fewer developers were able to maintain or translate COBOL, increasing operational vulnerability. - Slow feature delivery
Modern service expectations required faster releases and new digital workflows that the legacy stack could not support.
The organization needed a reliable, AI-driven modernization accelerator that would reduce risk, compress timelines, and preserve institutional knowledge.
Solution
Nexright implemented IBM watsonx Code Assistant to create an AI-powered modernization workflow spanning code comprehension, refactoring automation, and migration support.
Solution Highlights:
- Automated Code Understanding
Used AI to analyze thousands of COBOL and Java programs, revealing dependencies, data flows, KPIs, and hidden risks in a fraction of the time required manually. - AI-Powered Refactoring Recommendations
Generated modernization-safe suggestions for restructuring modules, optimizing logic, and surfacing duplications — reducing technical debt before migration. - Accelerated Migration to Modern Languages
Enabled automated translation patterns for COBOL-to-Java and API-ready service architectures. - Development Productivity Boost
Provided developers with AI-generated code snippets, test cases, and documentation, improving quality and consistency. - Governed, Compliant Modernization
Maintained strict controls around code changes, audit visibility, and approval workflows, ensuring modernization aligned with internal and regulatory standards.
Solution components
- IBM watsonx Code Assistant
- IBM watsonx.ai
- IBM watsonx Orchestrate (optional for workflow automation)
AI-Driven Legacy Code Comprehension
Automatically maps data structures, logic paths, and dependencies — reducing months of analysis to minutes.
Streamlined Refactoring & Optimization Guidance
AI suggests improvements that strengthen application quality and reduce modernization risk.
Faster Migration to Modular & Cloud-Ready Architectures
Converts legacy logic into clean, maintainable patterns suitable for microservices and hybrid clouds.
Result
- 94% reduction in time to analyze core COBOL modules
Automated insight generation replaced manual code walkthroughs. - 80% reduction in effort to understand and segment complex applications
AI-driven dependency mapping accelerated modernization planning. - Feature delivery accelerated by 50%
Development teams relied on AI-generated code, documentation, and test cases. - Full modernization completed with zero business disruption
Mission-critical systems remained operational throughout the transition. - Significant long-term OPEX savings
Reduced dependence on niche legacy talent and minimized rewrites.
Nexright and watsonx Code Assistant gave us clarity into systems we’ve struggled with for decades. What once took weeks now takes hours. Our modernization roadmap is finally achievable — without risking service continuity.
— CTO, National Social Services Agency