FPT, SCSK launch COBOL PARK to tackle 2025 ‘digital cliff’

FPT and SCSK have formed a joint venture in Japan that will focus on mainframe and COBOL-based legacy systems in the financial sector.

The new company is called COBOL PARK. It will start operations in October 2025. SCSK will hold a 66.7% stake in the venture. FPT will hold the remaining 33.3%.

The partners plan to target financial institutions that run core processes on COBOL and mainframe platforms. Many of these systems are decades old.

'Digital cliff' risk

The move aligns with concerns in Japan over the so-called "2025 Digital Cliff". This term refers to the risk that ageing systems and shrinking pools of specialist engineers will disrupt business and slow digital change.

Japan's Ministry of Economy, Trade and Industry has warned that many critical systems still depend on COBOL and mainframes. These platforms remain common in banks and insurers.

Mainframes continue to handle large transaction volumes. They are known for reliability and stable performance.

At the same time, the number of engineers who can maintain COBOL code is falling. Many are close to retirement.

The partners say COBOL PARK will address this issue through a mix of maintenance services and modernisation plans. The company will focus on business continuity and structured moves away from legacy platforms.

The joint venture will serve clients in Japan's financial industry, which the companies estimate at around 500 billion yen. The focus will be on institutions that depend on COBOL-based core banking and transaction systems.

Division of roles

COBOL PARK builds on a relationship between FPT and SCSK that has been in place since 2018. The two companies have worked together on IT services in the Asia Pacific region.

SCSK brings more than five decades of experience in system delivery across Japanese industries. It has a broad customer base and long-standing ties with local enterprises.

FPT contributes engineering resources and global delivery centres. The Vietnamese group has a large pool of younger IT staff and has invested in artificial intelligence research.

The venture will use this mix of experience and labour scale. It will focus on maintaining existing code while outlining migration and modernisation options for clients.

FPT also plans to apply AI tools within the joint venture. These tools will support assessment, remediation and conversion of mainframe workloads.

FPT Chairman Dr Truong Gia Binh said the new business sits at the intersection of legacy support and digital innovation.

"FPT and SCSK are at the forefront of application management, infrastructure services, and especially legacy modernization. With COBOL PARK, we are bridging the past, the present, and the future by maintaining legacy systems, supporting current operations, and enabling future innovations. By embedding AI into everything we do, our joint venture can deliver a smarter, future-ready approach to modernization and bring lasting values to our customers", said FPT Chairman Dr. Truong Gia Binh.

Rising maintenance costs

SCSK framed the creation of COBOL PARK as a response to rising costs and security concerns around old systems. It also highlighted the social impact of the skills shortage.

The company said many Japanese groups now view long-running legacy environments as a burden on continuity and growth. These systems require specialised support and frequent patching.

Ageing maintenance staff and a lack of new COBOL talent have increased the risk of failure during upgrades or change programmes. This trend has slowed system renewal in some sectors.

Takaaki Toma, Representative Director, Executive Officer, President of SCSK, linked the venture with a broader agenda for corporate renewal in Japan.

"Legacy systems that have been maintained for a long time by Japanese companies have become a burden on business continuity due to rising maintenance costs and increased security risks. Furthermore, the ageing of maintenance personnel and the resulting shortage of IT talent pose a societal challenge, hindering system renewal and advancement. The SCSK Group has established COBOL PARK Inc. in collaboration with FPT to provide options for business continuity and exit strategies.

"Through this initiative, we aim to accelerate the modernisation of IT systems in Japanese companies, including maintenance and improvement, and promote their advancement and optimisation. Looking ahead, we will continue to leverage our group's comprehensive strengths to enhance competitiveness and corporate value," said Toma.

COBOL PARK will operate initially in Japan. The partners have not disclosed specific customer names or revenue targets.

The joint venture is expected to expand its services as more organisations review core systems ahead of the "2025 Digital Cliff". It may also extend its approach to other markets in the Asia Pacific region that still run large mainframe estates.