Understanding the impact of technical debt

The effects of rapid digitization

In the age of technology saturation and digital-first, companies are beginning to feel the impact of rapid digital transformation. In many cases, the impact is positive and seen in improved efficiency and productivity. However, there are also negative effects that must be tackled head-on, such as the rapid accrual of technical debt.

Technical debt is what happens after making software development or implementation decisions that prioritize speed over quality. Much like financial debt, technical debt requires paying off, but it can be much more complicated and time-consuming than making monthly “payments.”

The infographic below highlights some of the most notable ways technical debt can impact an organization.

Recent events have caused a monumental push for companies to embrace digital transformation and rapidly digitize what were once in-person processes. For some, that meant they adopted new tools and systems well before the infrastructure was in place to properly implement them.

When organizations are focused on paying off technical debt—patching, fixing broken code, documentation—they can’t move as quickly, which can hamstring an organization. Reactionary work, like the work technical debt creates, typically results in much longer completion cycles compared to forward progress.

When teams are focused primarily on identifying and fixing existing issues, it leaves little room to focus on improvements, updates, and future project phases. Constantly looking backward instead of innovating leaves organizations less adaptable and behind in the market, which has proven to be detrimental in today’s hyper-digital environment.

Strategically planning for technical debt can be the difference between playing catch-up and innovating for the future. To learn more about technical debt and its impact on your organization, read our white paper here.