Technical debt (or tech debt) refers to the cost incurred when businesses take shortcuts in software development to meet short-term goals, such as speed to market. While these shortcuts may deliver immediate benefits, they often lead to long-term inefficiencies, increased maintenance efforts, and reduced agility. The term “debt” is fitting as it ties back to financial concepts, making it easier for stakeholders to understand how it impacts the bottom line. Just as financial debt accumulates interest, unresolved tech debt accrues costs over time, making it more challenging to address.

Types of Tech Debt

During our roundtable discussion, we identified four distinct types of tech debt that businesses encounter:

Intentional Tech Debt: This occurs when organisations make a conscious decision to prioritise speed over long-term quality. It is known, considered, and accepted with the aim of achieving a specific goal, such as launching a product quickly.

Unintentional Tech Debt: Arises from making decisions with incomplete information. In these cases, teams may not fully understand the long-term implications of their choices, leading to unforeseen technical challenges down the line.

Inherited Tech Debt: When businesses acquire other companies or legacy systems, they often inherit technical liabilities that were not part of their original infrastructure.

Trend-Driven Tech Debt: Adopting new technologies too frequently without sufficient control can lead to unnecessary complexity and inconsistency. As tech leaders, we should take a proactive approach to managing change and resist the allure of constantly chasing new trends.

Tech Debt Management by Business Size

We explored how businesses of different sizes approach tech debt repayment:

Small Businesses: Typically focus on rapid innovation and feature delivery. They take a “0% loan” approach, prioritising growth and profitability over resolving tech debt.

Medium Businesses: Often pay “interest only” on their tech debt. As they stabilise operations and face increased risk due to system entanglement, the fear of failure starts outweighing the opportunity for rapid innovation.

Large Enterprises: Must pay off the “capital” on their tech debt. At this stage, tech debt becomes a significant burden, requiring major investments such as system rewrites or large-scale refactoring efforts.

Identifying and Measuring Tech Debt

A recurring theme in our discussion was the challenge of quantifying tech debt effectively. While senior leadership often acknowledges its existence, they struggle to measure its true impact. Some strategies to identify and track tech debt include:

Tracking Lost Productivity: Measuring the time lost due to inefficient processes, bugs, and rework.

Cost of Delays: Assessing the impact of tech debt on project timelines and operational efficiency.

Employee Mobility Impact: Increased turnover can exacerbate tech debt as new employees may lack awareness of past decisions, leading to inconsistent development practices.

Other Discussion Points

Data Management and Tech Debt

One key insight was the critical role of data in managing tech debt. Aligning data relationships early can help businesses pivot more efficiently in the future. However, the upfront cost of doing so often discourages businesses from investing in robust data structures.

Growth and Team Dynamics

We noted that slower, managed growth allows teams to standardise development practices, resulting in lower tech debt accumulation. In contrast, rapid scaling often leads to inconsistency and technical shortcuts that can become problematic later.

Overcoming Internal Politics

Tackling tech debt often involves navigating internal politics, as addressing it may imply that past decisions were flawed. By focusing on the measurable costs and benefits of remediation efforts and understanding the context of previous choices, leaders can drive more constructive conversations.

Example of Tech Debt Effort

One participant shared an example of how a decision made five years ago resulted in six months’ worth of work to address technical debt. While such efforts may seem daunting, they become manageable when properly planned and understood in the broader business context.

Resisting Unnecessary Change

Over the last 15 years, the industry has seen frequent shifts between monolithic and microservices architectures. As tech leaders, we must resist the temptation to adopt new tools and frameworks simply because they are trending. Instead, maintaining consistency and sticking to a chosen path often yields better long-term results.

Tools to Manage Tech Debt

Several tools can assist in identifying and managing tech debt effectively:

Code Quality and Analysis Tools: SonarQube, CodeClimate, and Snyk to assess code health and vulnerabilities.

Project Management Tools: Jira, Trello, and Asana to track tech debt tasks and integrate them into development roadmaps.

CI/CD Automation: Jenkins, GitHub Actions, and GitLab CI to ensure that tech debt doesn’t accumulate during new feature development.

Dependency Management: Tools such as Dependabot and Renovate to keep libraries and frameworks up to date.

Key Takeaways

Tech debt is an inevitable part of software development but can be managed effectively with the right strategies.

Businesses of different sizes approach debt repayment in different ways, with larger enterprises needing to take more aggressive action.

Measuring and communicating tech debt is crucial to gaining organisational buy-in for remediation efforts.

Proactive data management and resisting unnecessary change can help reduce the accumulation of debt over time.

By recognising tech debt as an ongoing challenge rather than a one-time fix, businesses can strike a balance between innovation and long-term stability.