Businesses love innovation and making things simple both for the organization and the customers whom they serve. Technology was built on that premise and it’s the reason we have so much variety in the selection of technology providers and services in 2023. However, just like the businesses that use technology to enhance their operations, the providers of the technology are running a highly complex operation and working hard to continuously make it profitable.
As technology providers continue to innovate and improve their products and services, they may also accumulate “technology debt”. This can happen when they rush the launch of a new product or feature, use shortcuts to solve problems, or simply neglect to properly maintain and update their systems. It’s normal to see prices rack up but not making it a priority to have paid off is dangerous.
Why is Technology Debt so Detrimental?
The biggest issue with technology debt is that it can make it harder for the provider to continue innovating and improving their technology, in addition to making it more difficult for their customers to fully utilize the technology's capabilities.
Technology debt is like when you use your allowance money as a kid to buy something you want now, but then you don't have enough money to buy something else you need later.
When a company or organization uses shortcuts or quick fixes to solve a problem, they can get things done faster in the short term, but it can make it harder and more expensive to fix or update things in the future. So just like saving money, it's crucial to keep on top of technology debt so it doesn't become a bigger problem later on.
Last year alone, nearly 70% of organizations struggled with rising tech debt costs which was primarily attributed to the pandemic. As a result, many companies are making efforts to reduce their tech debt and invest their cash in more cost-effective solutions. These solutions include:
Open source software: This software is free to use, simple to modify, and distribute. It can make for a cost-effective alternative to proprietary software, which typically requires a license or subscription fee.
Cloud computing: Companies only pay for the computing resources they use, lowering initial costs and providing flexibility in usage and scaling.
Outsourcing: This provides access to specialized expertise at a lower cost than that of maintaining an in-house team.
The main concern with tech debt in this sense is the expense of maintaining, updating, and modernizing technology in the long run. Again, using the pandemic as an example, many companies had to quickly adopt new technical methods to support remote work and online operations alike.
This sudden increase in technology usage and adoption led to a dramatic rise in tech debt for many organizations. As a result, organizations began turning to alternative solutions like the ones listed above.
We’ve done a lot of talking about what tech debt is, but the real question is: how can your business avoid becoming part of the 70%? The answer is simple: stay on top of your technology debt. It may seem like a daunting task, but updating your software systems can save you a lot of trouble in the long run which is a key reason to invest in IT systems.
Aside from the obvious risks and headaches that come with accumulating debt, 6 of the main consequences of not managing tech debt include:
Difficulty in attracting and retaining top talent: Engineers may be less willing to work on a system that is difficult to maintain or update.
Reduced flexibility: The codebase may be difficult to understand or modify, limiting the ability of the organization to adapt to its own changing needs.
Difficulty in integrating new technologies: Branching off the above point, the existing codebase may not be compatible with newer technologies.
Security vulnerabilities: Code that hasn’t been updated may not have been written with optimal security measures.
Hard to scale: The codebase may not be designed to handle increased usage or traffic.
Maintenance costs: It becomes more and more expensive to maintain and update the affected systems, which may result in reduced productivity and higher costs for the business.
Managing The Issue
One of the sure ways to stay on top of your technology debt is by working with a trusted provider who can help you assess your current systems, identify areas of improvement, and, most importantly, implement cost-effective solutions. By being proactive, you can ensure that your organization is well-positioned to take advantage of new technology as it becomes available.
At ISU Corp, we understand the importance of staying ahead of technology debt. That's why we offer a range of services to help businesses like yours assess, manage, and reduce their technology debt. From open-source software and cloud computing to outsourcing, we have the expertise and resources to help you stay ahead of the curve. Contact us today to learn more about how we can help your organization stay on top of tech debt and overall improve your bottom line.
Written By Ben Brown
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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.
Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.
