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Legacy Systems Continue to Slow Digital Transformation in the Dominican Republic
A new 2026 study reveals that while businesses across the Dominican Republic are expanding their digital transformation efforts, most IT spending remains focused on maintaining legacy infrastructure, limiting progress toward advanced artificial intelligence and automation.
Dominican companies are making steady progress in digital transformation, but outdated technology infrastructure continues to absorb the vast majority of their information technology budgets. According to the 2026 study The State of Digital Transformation in the Dominican Republic, 92% of IT spending is devoted to maintaining existing systems rather than supporting innovation or modernization.
The report, presented by Wilson Calderón, Associate Technical Director at ManageEngine, is based on a survey of 1,000 technology and business decision-makers across Latin America, including 150 respondents from the Dominican Republic. It examines organizations’ digital maturity, technology fragmentation, and readiness to adopt artificial intelligence (AI).
Legacy Infrastructure Remains the Main Obstacle
Calderón said digital transformation has evolved beyond simply digitizing business processes or migrating workloads to the cloud. Today, organizations must integrate data, automate operations, and build technology environments capable of supporting AI-driven decision-making.
However, the study found that 72% of organizations remain stalled in their digital transformation journey. Of those, 31% are constrained by legacy systems, while 41% operate across fragmented cloud environments that make data integration and automation more difficult.
The report also indicates that only 8% of Dominican organizations have reached an advanced level of AI orchestration, highlighting the gap between infrastructure modernization and practical implementation of artificial intelligence.
Technology Fragmentation Continues to Challenge Businesses
Another major finding is the widespread use of multiple disconnected technology solutions. According to the survey, 89% of respondents believe their organizations rely on an increasingly diverse set of digital tools, while 51% still prefer combining several best-of-breed applications instead of adopting a unified technology platform, an approach favored by 35% of respondents.
Although fragmented environments can provide specialized capabilities, they often increase operational complexity and create additional challenges when integrating data across business systems.
AI Adoption Faces Organizational and Security Challenges
Despite these obstacles, 95% of companies believe they already have the infrastructure required to adopt artificial intelligence. The biggest barriers identified are a shortage of specialized talent (18%), weak data governance (18%), and limited executive alignment (16%).
The study also highlights growing cybersecurity concerns. Nearly 64% of organizations reported an increase in successful cyberattacks during 2025, while 73% believe generative AI creates new risks for data security. Calderón noted that cybercriminals are increasingly using AI to launch more sophisticated attacks.
Describing artificial intelligence as “a double-edged sword,” he emphasized that the technology itself is not the primary problem. Instead, organizations need stronger governance policies, better data management, and clearer rules for responsible AI use.
Simplification Seen as the Next Step
According to the study, organizations seeking to accelerate digital transformation should simplify their technology infrastructure, strengthen data governance, and move toward unified platforms capable of supporting artificial intelligence at scale. These measures are expected to improve operational efficiency while helping businesses unlock more value from AI investments.
