Technical debt is a common challenge for companies that make quick technological decisions to address immediate needs. It is the result of choices made with only the short term in mind. If these are not quickly corrected, these decisions lead to accumulated costs, reduced productivity and a slowing of innovation. It is a common issue in the area of software development, and can have major repercussions on IT management. Our strategic IT services experts can help you understand this important issue in more depth.
Technical debt definition
Technical debt is a concept used to describe the long-term consequences of technological decisions made under pressure or for quick gain. Ward Cunningham introduced the concept in 1992, comparing technical debt to financial debt. When a company adopts an interim solution or fails to keep its systems up to date, it incurs a debt that will have to be “repaid” later in the form of corrections, updates or complete overhauls. If left unaddressed, this debt can build up over time and eventually lead to significant costs for the company.
Technical debt manifests itself in obsolete systems, poorly structured source code or IT infrastructures that no longer meet the company’s needs. If left unmanaged, it can lead to significant additional costs and compromise overall operational efficiency.
Causes of technical debt
Several factors contribute to the creation of technical debt. Here are the most common:
- Lack of regular updates: Obsolete systems are one of the main causes of technical debt. Delayed software updates lead to security and performance problems.
- Temporary solutions: In an emergency, temporary solutions are often adopted to meet demands. These choices, while necessary in the short term, create a technical debt that must be repaid by adapting or replacing the initial solutions.
- Poor-quality code: Code quality plays a decisive role. Rapid development practices that don’t respect best practices create a debt that can only be rectified through costly refactoring operations.
- New, unanticipated requirements: Requirements sometimes change in ways that cannot be predicted, and existing systems have to be adapted accordingly. This can create additional debt if the potential for change is not integrated into the development process from the outset.
Technical debt challenges
The challenges of technical debt are numerous, and can have a direct impact on a company’s performance, competitiveness and capacity for innovation, thereby generating significant IT risks. Here is a more detailed description of the main issues companies will face:
1. Productivity slowdown
Technical debt can lead to a significant reduction in productivity within a company. When obsolete systems or unoptimized software are used, employees waste time working around technical limitations, dealing with recurring bugs or waiting for responses from slow systems. This reduces the overall efficiency of teams, which can have repercussions on project delivery times.
2. Higher maintenance costs
The more technical debt a company accumulates, the higher its maintenance costs. Systems that have not been updated and infrastructures running on outdated technologies,require frequent intervention to remain functional. These repairs and adjustments can cost far more than an initial investment to avoid the problem. Additional costs are also linked to the increased risk of breakdowns, service interruptions and security breaches.
3. Increased security risk
Obsolete and out-of-date systems are particularly vulnerable to cyber attacks. The accumulation of technical debt exposes a company to increased security risks, since hackers can exploit known flaws in uncorrected systems. Cyberattacks can result in significant financial losses, the compromise of sensitive data and damage to the company’s reputation. By neglecting technical debt, companies are putting themselves and their customers at risk.
4. Difficulty integrating new technologies
A high level of technical debt can make it difficult to integrate new solutions and technologies. When an infrastructure is aging or has not been designed to evolve easily, integrating new functionalities or adopting innovations (such as cloud computing, artificial intelligence or mobile solutions) becomes complex and costly. This can limit a company’s ability to respond rapidly to new market trends or customer needs.
5. Impact on innovation
Technical debt holds back innovation. Companies that spend a lot of time and resources maintaining aging or non-optimized systems can’t devote those same resources to innovative projects. Technical debt creates a lock-in effect, preventing the company from focusing on the development of new products, services or processes that could help it remain competitive.
6. Loss of competitive edge
Companies that accumulate too much technical debt risk losing their competitive edge to competitors who are more agile and better equipped to innovate. By being held back by obsolete or non-upgradeable systems, they can miss out on opportunities for growth, new markets or strategic partnerships. A company that is too focused on managing its technical debt often finds itself out of step with market expectations and customer needs.
Types of technical debt
Here is a summary of the most common types of technical debt:
- Intentional technical debt: Deliberate choice to sacrifice quality in the short term to meet urgent needs, with the intention of correcting the situation later.
- Unintentional technical debt: Unintentional accumulation due to errors, lack of follow-up or inadequate development practices.
- Technical debt related to obsolescence: Technologies or systems that have become obsolete (not updated), leading to safety risks and high maintenance costs.
- Technical debt due to growth, new needs and development processes: Systems are no longer able to keep pace with changing business requirements, creating a mismatch between needs and technological capabilities.
Measuring your company’s technical debt
Assessing technical debt is key to limiting its negative effects. Here’s how:
1. Take stock of obsolete system infrastructure
An assessment of infrastructure and software can identify systems that no longer meet current needs, or that have not been updated in a long time. These systems must be given priority.
2. Audit of code quality
Technical debt can also be assessed by analyzing source code. Poorly structured or difficult-to-maintain code is a strong indicator of technical debt. An audit will help identify areas requiring improvement.
3. Follow-up on requests for additions and corrections
A growing number of requests for modifications or corrections is also an indicator of technical debt. Rigorous management of these requests helps to limit the accumulation of debt.
4. Cost estimates
Future costs associated with technical debt must be calculated, including maintenance, development and upgrade costs. This information helps determine whether the debt is manageable, or whether it will require significant resources in the future.
How to manage and repay technical debt
To effectively manage technical debt, you’ll need to make strategic decisions so you can repay it while maintaining IT system performance. Here are some concrete actions to consider:
1. Prioritize upgrades
Critical or obsolete systems must be treated as a priority. A plan must be put in place to carry out necessary upgrades, and to verify that temporary solutions are replaced by more robust and durable alternatives.
2. Improve development practices
Introducing strict coding rules and best practices helps limit the creation of new debt. Development teams should focus on quality rather than speed, even under tight deadlines.
3. Budget planning
Reducing technical debt requires financial resources. Remember to integrate these costs into your company’s IT budget, so they do not get out of control.
4. Maintain technological flexibility
The chosen solutions must be adaptable enough to accommodate future needs without requiring expensive new developments. By opting for scalable solutions, it is possible to manage technical debt without it becoming an obstacle to productivity.
Flexible business solutions for managing technical debt
Managing technical debt requires tailored business solutions capable of meeting both current and future business needs. Here are a few approaches:
- Flexible, scalable tools: When you choose solutions that can adapt to market trends and internal needs, it helps limit the creation of new technical debt. It’s important to use software that can be easily updated, and that offers the possibility of adding new functionalities without altering system performance.
- Implementation of agile development processes: Agile methodologies make it possible to manage technical debt proactively, in such a way that each development or modification is carried out with long-term impacts in mind. This helps to centralize requests for additions and corrections, while avoiding the accumulation of additional debt.
- Adopt a long-term approach: It’s important not to focus solely on short-term results. Taking the time to assess any future implications of technological choices can help avoid the creation of technical debt. Proactive, flexible systems management helps prevent problems before they become critical.
Call on IT outsourcing experts to help you manage technical debt
Technical debt is a necessary evil in many situations, but it needs to be dealt with quickly and effectively. If not properly managed, it can become a burden for companies, hampering their productivity and ability to innovate. By adopting a proactive approach and implementing rigorous management strategies, it is possible to bring this debt under control and maintain a company’s long-term competitiveness.
Calling on Groupe SL’s IT outsourcing services can be a strategic solution for software deployment and effectively managing your technical debt. With recognized expertise in IT systems optimization, Groupe SL offers tailor-made solutions for assessing, reducing and preventing the accumulation of technical debt. Our flexible, proactive approach leaves you to focus your efforts on growth and innovation, while we keep your IT infrastructures running efficiently and adapt them to current and future IT project management challenges.
