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Technological Debt: The Hidden Cost of Speed

How to manage technology debt?

Software development is an ever-evolving field that demands to keep up with the latest trends and updates. However, technological debt is a major challenge that many software development processes face, and ignoring it won't make it go away.

What is technological debt?

Tech debt is a concept that describes the long-term consequences of choosing suboptimal technological solutions in software and IT infrastructure. It can result in additional rework, maintenance, and corrections that are often complex and time-consuming, leading to increased costs and decreased productivity.

This type of debt can accumulate over time and eventually become a significant burden on the organization, hindering its ability to innovate and compete in the market. Therefore, it is essential to prioritize the selection of optimal technological solutions to avoid tech debt and ensure long-term success.

Technological debt takes three forms: planned, unintentional, and unavoidable.

  • Planned technological debt is a conscious decision made by development teams to implement a solution quickly, even though it may not be perfect. This approach is often taken when there is a tight deadline or a limited budget. However, it can lead to increased costs in the long run if the solution needs to be reworked or fixed later.
  • Unintentional technological debt occurs accidentally as a result of bad coding practices or inadequate management. This type of technologicaldebt can be caused by factors such as a lack of training, poor communication, or a lack of documentation. It is often the result of developers taking shortcuts to save time or meet a deadline.
  • Finally, unavoidable technological debt is caused by changes in the industry or technology. For example, the introduction of new programming languages or devices can make existing code obsolete or require significant changes to be made. This type of technological debt is often unavoidable, and development teams must plan for it when making decisions about software development.

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Effects of tech debt

Technological debt is often likened to financial debt. While compromises taken during software development to meet deadlines or prioritize new features may seem necessary in the short term, they can have detrimental consequences for the project's overall health and sustainability.

  • Increased Development Costs: technological debt often leads to refactoring and rework in the long run, which can significantly increase development costs. When developers spend more time fixing legacy code than adding new features, overall project efficiency suffers.
  • Reduced Productivity: The constant need to address technological debt issues takes away the time and focus, hindering the ability to work on innovative projects and deliver new features promptly. This can lead to frustration, decreased team morale, and ultimately, reduced productivity.
  • Increased Risk of Outages and Security Breaches: technological debt often manifests in the form of poorly written code, outdated or inflexible architecture, and performance bottlenecks. These issues can increase the likelihood of system failures, data breaches, and security vulnerabilities, putting the organization's reputation and user data at risk.
  • Difficulty Scalability and Adaptability: A codebase burdened with technological debt becomes less flexible and adaptable to changing requirements and technologies. This hinders the organization's ability to innovate, compete in the market, and meet the evolving needs of their users.
  • Impact on Customer Experience: The negative consequences of technological debt often trickle down to the user experience. Performance issues, security breaches, and frequent downtimes can lead to customer dissatisfaction, decreased loyalty, and a tarnished reputation for the organization.

Is technological debt always bad?

While it's almost impossible to avoid technological debt altogether, it can be a necessary evil when the benefits outweigh the cost. For instance, if a company needs to release a product quickly to gain a competitive advantage, it might have to compromise on some aspects of code quality, which could result in technological debt.

However, not all technological debt is bad. In cases where the end quality of the code is not critical, or when time is a constraint, it might be reasonable to incur technological debt. In such situations, developers might choose to implement temporary solutions to meet the immediate needs of the project, even if it means accruing some technological debt.

The key factor that distinguishes good technological debt from bad is the intention to repay the debt on time. Good technological debt is incurred with the understanding that it will be paid off in the future, usually within a reasonable timeframe. In contrast, bad technological debt is incurred when developers knowingly implement shortcuts or hacks without any plan or intention to repay the debt. Over time, this can lead to a snowball effect, where the debt accumulates, making it increasingly difficult to maintain or update the codebase.

Read how to avoid the trap of technology debt in the e-commerce industry. 

Managing technological debt

Although technological debt remains a challenge for software systems, there are effective management strategies that can mitigate its impact and ensure the long-term health of the systems. The best way to manage technological debt is to prevent it in the first place by emphasizing careful planning, thorough requirements analysis, and continuous code review.

However, when necessary, repayment should be approached strategically by prioritizing the most critical and impactful areas of debt. Refactoring, which involves improving the existing code without altering its functionality, can enhance readability, maintainability, and efficiency.

Migration to newer technologies can also be helpful in bringing the software infrastructure up to date, improving performance, security, and scalability.

In some cases, accepting a certain level of technological debt may be necessary, especially when the costs of repayment outweigh the immediate benefits or the debt poses minimal risk. However, this acceptance should be carefully considered and documented to ensure that the organization is aware of the associated limitations and potential consequences.


Technological debt can be a daunting problem for software development companies, potentially having serious implications for the security and functionality of software solutions. However, with the right approach, it is possible to overcome this challenge and achieve great success.

By identifying and prioritizing technological debt, and developing a suitable strategy to manage it, development teams can gradually pay off the debt in a way that maximizes product quality, performance, and security. Effective communication and collaboration are key to this process, ensuring that every team member is involved and contributing their valuable input.

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