02 July 2025

Essenkay has issued a stark warning to UK companies relying on legacy technology, suggesting that such dependence could be exposing them to serious security threats and operational inefficiencies.

The consultancy highlights increasing concerns across various sectors — including manufacturing, engineering, logistics, and professional services — that continue to depend on aging systems despite the availability of advanced cloud solutions.

A recent study by the Financial Conduct Authority (FCA) underscores the extent of the problem within the financial sector, revealing that 92% of financial firms still rely on legacy technology, with 78% of their data stored on on-premise systems. Essenkay emphasises that this challenge is widespread and particularly pressing amid mounting economic pressures on UK businesses.

While legacy platforms may seem to function adequately, they quietly hinder business productivity, create operational blind spots, and introduce significant cybersecurity vulnerabilities. As economic conditions become more challenging, maintaining such systems is not only inefficient but increasingly risky.

Operational inefficiencies are a primary concern. In manufacturing, outdated systems can lead to inaccuracies in stock records, while in logistics, fragmented supplier data hampers operational flow. These legacy platforms often force employees into manual workarounds, which are time-consuming, error-prone, and reduce overall efficiency.

Another critical issue is the proliferation of data silos. Without a modern Enterprise Resource Planning (ERP) system, vital business information can become dispersed across spreadsheets, local servers, and obsolete software, impairing reporting and decision-making processes.

Cybersecurity remains a growing concern, especially as cyberattacks increase in frequency. Government data indicates that half of UK businesses suffer security breaches annually, with recent incidents at major retailers like Marks & Spencer highlighting vulnerabilities. Outdated devices such as old barcode scanners, industrial IoT components, and legacy financial platforms are potential weak points.

Beyond operational risks, Essenkay warns that reliance on obsolete systems can cause companies to miss vital business opportunities. Limited access to advanced analytics and predictive tools prevents organisations from identifying customer trends or operational efficiencies.