What Is Technical Debt And How Is It Affecting Your Business?

All businesses are familiar with the concept of financial debt, but are you aware of the dangers posed by technical debt? 

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Technical debt refers to the future cost incurred because of decisions to save time and money when implementing or upgrading new tech tools in the short term. The most obvious example of this is failing to update hardware or software. Although it saves money in the short term, it ends up costing more later on when productivity dips, more repairs are required, and the upgrades do eventually need to be made. Overall, it would have been cheaper to make the upgrades straight away. 

Technical debt is something that often goes unnoticed and it could be costing your business a lot of money. In fact, dealing with tech debt could help you resolve financial problems in the business and cut costs moving forward. Read on to find out more about why tech debt happens and what you can do about it. 

Why Does Tech Debt Happen?

There are two main reasons why tech debt happens; time and money. In some cases, there is a serious time constraint in place and that means that businesses cut corners. Say, for example, a business is developing a new sales system and they want it up and running in the next month. The development team will cut corners to meet that deadline, but this will lead to more issues in the future. The business then has to absorb the cost of patching those issues and fixing all of the bugs. 

Trying to save money is the other big reason why tech debt occurs. Your office computers might be running a little slow but you want to save money so you don’t replace them. However, that debt is repaid when they start breaking and you see a drop in productivity and you have to pay for an IT specialist to keep repairing them. 

What Can You Do To Resolve Tech Debt?

There are a number of things you can do to reduce tech debt in your business but the most important thing is to look ahead to the future. Start thinking long term and instead of focusing on what will save you time and money in the next month or two, think about what will improve your business over the next five to ten years. You should also work with an experienced company like IT Ally LLC, who can help you implement long term solutions and avoid tech debt. Once you start taking this approach, you can reduce tech debt in the future. 

You also need to assess your current tech debt and identify areas where there are issues. In some cases, you may be able to resolve the problem but you may also have to absorb the extra costs and focus on avoiding the same situation in the future. 

Tech debt is a hidden drain on business resources and if you don’t get on top of it, you may experience some significant financial problems as a result. 

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