In the rush to deliver on a project quickly, it’s easy to overlook the long-term consequences of cutting corners. When teams prioritize the fast delivery of a project over quality, they risk overlooking future complications that arise from settling for a simpler approach instead of one that requires more time. This would be referred to as technical debt.
What Is Technical Debt?
Technical debt refers to the implied cost incurred in the future due to taking shortcuts during a project’s development. Similar to financial debt, but instead of paying interest, it is paid in the form of refactoring software until the technical problem is solved. In short, technical debt represents the trade-off between quick delivery and long-term maintainability.
The Hidden Costs of Technical Debt
Technical debt can pose some detrimental consequences across multiple dimensions to your business. First, it leads to increased operational costs as organizations spend additional time and resources fixing issues caused by earlier shortcuts or underinvestment during development. Over time, this technical debt contributes to lower software quality, affecting user experience and customer satisfaction.
If your company is looking to expand, technical debt hinders that scalability, especially when outdated or poorly designed systems cannot support growth. It also introduces security vulnerabilities, making systems more susceptible to breaches. Perhaps most critically, addressing technical debt requires significant time and effort, which can delay time-to-market for new features or products. Without a proactive strategy, technical debt can snowball into a costly and disruptive force.
From an enterprise project management lens, technical debt can get in the way of planning your transformation strategies, as outcomes are misaligned with the original objectives. You’ll find mass amounts of maintenance, stabilization and duplicative development costs that will increase the “speed-to-market” on getting user adoption and smoother processes in your organization.
Identifying Technical Debt in Your Systems
While we have mapped out what technical debt is and some of the hindrances it can cause to your company, let’s take a look at some specific examples of technical debt in your systems:
- Outdated Software Development Platforms: Legacy systems that rely on complex, non-standardized code often create technical debt. In contrast, modern rapid application development platforms, like low-code or no-code, offer a visual approach, saving up to 50% of coding effort
- Delayed IT Infrastructure Upgrades: Postponing upgrades leads to a compounding increase in technical debt. Unsupported hardware and software become more expensive to maintain and pose security risks.
- Slow Provisioning with Legacy Infrastructure: Outdated infrastructure slows down capacity provisioning, delaying product launches and increasing operational costs compared to modern alternatives.
- Business Pressures: Releasing products prematurely often results in technical debt, especially when changes or improvements are left incomplete. This goes hand in hand with a lack of understanding of technical debt, as employees may think they are helping by completing tasks on time but have no idea the long-term consequences of poor quality.
Types of Technical Debt
Technical debt can take many forms across your IT landscape:
- Design Debt: Caused by rushed architecture decisions or over-reliance on vendors, this type of debt can limit future innovation.
- Code Debt: Includes poorly written, duplicated or outdated code. Refactoring helps but real progress requires mobilizing developers to address root issues.
- Infrastructure Debt: Comes from aging IT components that are hard to maintain and slow to respond, often due to budget constraints or complex systems.
Why Managing Technical Debt Is Critical for Project Success
Here’s why managing technical debt matters and how to approach it effectively:
- Risk Management: Ignoring technical debt can lead to system failures, security breaches and operational hiccups. Addressing it early helps mitigate these risks, ensuring smoother and more reliable operations.
- Cost Efficiency: Proactive management of technical debt reduces costs in the long run by avoiding costly fixes and minimizing maintenance efforts. This approach allows organizations to allocate their budgets more effectively and avoid unanticipated expenses.
- Innovation: By reducing technical debt, teams can free up resources and invest in innovative projects that enhance the organization’s edge over competitors. This fosters a culture of continuous improvement and keeps the company ahead in the market.
How to Evaluate Technical Debt
Evaluating technical debt involves identifying and assessing areas where quick fixes or poor-quality solutions have been implemented, often due to time constraints or resource limitations. Here are some strategies to consider when assessing your technical debt.
- Inventory and Documentation Review: Regularly review codebases and system architectures to identify areas of technical debt. This thorough examination helps you understand the scope and impact of the debt, making your remediation efforts easier.
- Performance Metrics Analysis: Analyze performance metrics to pinpoint bottlenecks and inefficiencies caused by technical debt. By understanding these metrics, teams can target specific areas for improvement and enhance overall system performance, thereby reducing technical debt.
- Engage with Stakeholders: Collaborate with stakeholders to understand how technical debt impacts business operations and prioritize remediation efforts. Engaging with stakeholders ensures that the technical debt is addressed in a way that aligns with business goals and objectives.
- Risk Assessment: Identify and evaluate potential operational disruptions and security vulnerabilities associated with technical debt to establish an effective mitigation strategy. This assessment helps in identifying the most critical areas that need immediate attention, reducing the risk of a major issue.
Building a Smarter Path Forward
Technical debt isn’t inherently harmful; it’s a natural byproduct of fast-paced development and evolving business needs. However, when left unaddressed, it increases software complexity, drives up rework costs and hinders long-term project success. Because technical debt directly affects an organization’s total cost of ownership and ROI, it’s important to balance short-term delivery goals with long-term maintainability to keep systems stable and scalable over time.
At Withum, our team of experts can help you assess your current systems, identify hidden debt and build a roadmap for sustainable growth.
Authors: Collin Forster, Jack Lanza and Kim Gordon, MAcc, CSM | [email protected]
Contact Us
For more information on this topic, please contact a member of Withum’s Project Management Services Team to learn how we can help your business manage technical debt and build long-term value.
