Technical debt is a growing issue for many organizations. Forrester’s Q2 2024 Tech Pulse Survey revealed that only 21% of US IT decision-makers report no significant technical debt. In contrast, 49% face moderate levels, and an alarming 30% struggle with high or critical debt. This growing burden — caused by past decisions, time constraints, or external pressures — competes with the ability to pursue new initiatives. Like financial debt, tech debt accrues interest, too. The longer it remains unresolved, the more resources are required to fix it. It impacts the delivery of new projects and weakens operational resilience, including security.
Acknowledge, Accept, And Act Upon Tech Debt
The first step in managing tech debt is to acknowledge its presence and recognize that not all tech debt is bad. Sometimes, it’s taken on intentionally to meet deadlines, with a plan to address it later. Application portfolio rationalization with architecture reviews help identify redundant and overlapping applications. They offer opportunities to consolidate and merge functionality, reducing overall complexity. Analyzing bugs and service tickets can also help identify potential problem areas. From these insights, immediate action plans should be developed to address the identified issues.
Tech Debt Is A Silent Killer Of Your Innovation Strategies
Tech debt can act as an innovation killer by diverting resources away from new ideas and projects. In Forrester’s Modern Technology Operations Survey, 2023, 16% of global digital and IT professionals said that their firms do not prioritize addressing technical debt, leading to negative impact for stakeholders. To tackle this challenge, companies can benchmark operational costs against industry best practices, implement sustainable cost optimization programs, and closely monitor and analyze regular maintenance expenses.
Do Not Let Your Tech Debt Lead You To Tech Bankruptcy
Early intervention is the most cost-effective way to prevent tech debt from spiraling into tech bankruptcy. Tech bankruptcy occurs when debt becomes so overwhelming that maintaining or upgrading systems is no longer feasible, requiring drastic measures like complete overhauls or abandoning outdated technologies. To avoid this, incorporate technical debt into the same product backlog as new features, tracking it by time to resolution. Escalate and investigate any significant delays, as failing to address this backlog poses a serious risk.
Future-Proof Your Investment Strategies
Managing tech debt is an ongoing process that requires commitment from the entire development team and its stakeholders. By acknowledging and strategically addressing tech debt, organizations can maintain the agility and health of their software systems, ensuring they continue to meet the needs of users and the business. In our survey, US IT and technology decision-makers indicated that their firm, on average, is dedicating 20% of its IT budget to this cause.
Read our report, The State Of Technical Debt In The US, 2024, to learn more about the current state of technical debt in organizations. Request a guidance session with me to discuss effective strategies to manage your tech debt.
