Technical debt

Why is it important to avoid technical debt?

Avoiding technical debt is important because it keeps software reliable, scalable, and easy to update. It is an essential part of IT cost optimization.

When technical debt builds up, it slows down development. Developers spend time fixing old problems instead of improving the product. In a project with one million lines of code, technical debt can cost $306,000 per year—equal to 5,500 developer hours spent on fixes.

Too much debt leads to bugs, security risks, and performance issues. These problems frustrate users and increase support costs.

Some debt is unavoidable, but managing it prevents long-term damage. By reducing technical debt, teams work faster, software stays reliable, and businesses save money.

What are the goals of managing technical debt?

Managing technical debt is essential for keeping software scalable, efficient, and cost-effective. Proper management ensures long-term software health and business success.

Let’s take a closer look at the main goals:

Keeping development efficient

• Prevents developers from spending too much time fixing old code instead of building new features.
• Reduces complexity, making it easier to add new functionality.
• Keeps projects on schedule by avoiding unexpected delays caused by poor code quality.
• Improves collaboration by ensuring code is clean, organized, and well-documented.

Reducing long-term costs

• Saves money by preventing small issues from turning into expensive, large-scale problems.
• Ensures that budgets for new projects aren’t drained by fixing old technical debt.
• Lowers maintenance costs by keeping code easy to update and troubleshoot.
• Helps avoid major system failures that can lead to downtime and lost revenue.

Maintaining software stability and performance

• Keeps software reliable by fixing weak points before they cause serious failures.
• Improves security by addressing vulnerabilities that arise from outdated or rushed code.
• Ensures software remains scalable, allowing it to handle growth without performance issues.
• Reduces bugs and crashes, leading to a better user experience and fewer support issues.

Who is involved in preventing technical debt?

Preventing technical debt requires teamwork between different people inside and outside the business. Each plays a role in keeping software reliable, easy to update, and cost-effective.

Internal stakeholders

• Software developers: Write clean code and improve old code to avoid future problems.
• Engineering leads: Set rules for coding and help teams make good technical choices.
• Product managers: Plan development timelines so teams can work fast without cutting corners.
• Quality assurance (QA) teams: Test software to find bugs and issues before they grow.
• DevOps teams: Manage systems, automate tasks, and ensure the software runs smoothly.
• Business leaders: Make sure money and time are used wisely to keep software strong.

External stakeholders

• Customers and end users: Report bugs and problems that show where technical debt is causing issues.
• Technology vendors: Provide tools and updates that help teams fix and manage technical debt.
• Consultants and advisors: Give expert advice on better coding and software management.
• Regulatory bodies: Make rules to keep software safe, legal, and up to standard.
• Investors and business partners: Support long-term software quality instead of just quick fixes.

What is required to avoid technical debt?

To keep software easy to update and prevent costly fixes, organizations should focus on three key areas: writing clean code, improving development processes, and making smart technology choices.

Write clean and scalable code

Use simple, well-organized code that is easy to read and update. Follow coding standards to keep everything structured. Regularly improve old code to remove problems before they grow. Keep clear documentation so future developers can understand and work with the code without confusion.

Improve development processes

Set realistic deadlines to allow teams to write quality code instead of rushing. Use code reviews to catch mistakes early. Invest in automated testing to find issues before they cause major problems. Think long-term when making technical decisions to balance speed and stability.

Make smart technology choices

Use modern tools and frameworks that are easy to maintain. Avoid outdated or overly complicated technology that causes future problems. Make sure all tools and systems work well together. Regularly check and upgrade technology to keep software fast, secure, and reliable.

Why do attempts to prevent technical debt fail?

Many organizations try to avoid technical debt but struggle with common challenges. These failures often happen due to rushed timelines, unclear responsibilities, and a lack of long-term planning. Without the right strategies, technical debt can build up and become difficult to fix.

Unrealistic deadlines and pressure to deliver fast

Teams are often under pressure to release new features quickly, leading to rushed development. When deadlines are too tight, developers may take shortcuts, skip proper testing, or write messy code just to get things done on time. 

Lack of clear ownership and accountability

Preventing technical debt requires responsibility, but many organizations don’t have a clear system for managing it. Developers might notice issues but lack the authority to fix them. Business leaders often prioritize new features over fixing existing code. 

Poor long-term planning and resource allocation

Many companies focus only on short-term goals and don’t set aside enough resources to manage technical debt. Budgets often go toward new development instead of maintenance and refactoring. Without regular investment in improving code, small inefficiencies turn into major roadblocks. 

Technical debt use cases

Technical debt can slow business growth, increase costs, and cause system failures. Identifying and fixing it early improves performance and stability.

Here are three real-world examples:

E-commerce

Scenario: An online store has slow page loading, leading to high cart abandonment. The checkout system is built on outdated, inefficient code.

Method: The company removes old code, optimizes the checkout process, and improves database performance.

Outcome: The website loads faster, reducing cart abandonment and increasing sales.

Financial services

Scenario: A bank’s outdated system crashes often and has security issues. Fixing it is expensive and time-consuming.

Method: The bank upgrades critical functions to a cloud system through legacy application modernization while keeping old systems running until fully replaced.

Outcome: The system becomes more secure and reliable, reducing downtime and improving customer trust.

SaaS (Software as a Service)

Scenario: A SaaS company struggles to release new features because old, messy code causes bugs and delays.

Method: The company cleans up its code, introduces coding standards, and automates testing.

Outcome: Developers work faster, updates are more stable, and customer satisfaction improves.