Technology leaders are challenged to adapt to the current economic environment – rising inflation and potential economic slowdown. New IT strategies must consider possible limitations on IT spending combined with an increasing risk from cyberthreats and vulnerabilities. IT leaders need to provide more value to the business with smaller budgets that can no longer be spent on “repaying” the technical debt.
Technical debt (or technology obsolescence) in IT infrastructure arises from neglecting the upgrades of technology devices like computers, servers, and applications, leading to outdated systems known as legacy infrastructure. Ignoring unresolved technical debt contributes to its accumulation, posing not only security risks but can be a major cause of financial burden for companies. Unlike financial debt, it is not tangible – therefore many companies struggle to estimate the magnitude of impact caused by technical debt and hence don’t budget correctly for it. To optimise financial performance, it is important to understand all the components of technical debt, budget for the financial impact associated and recognise the severity if left unattended.
This article explores the costs companies can incur, as a result of technical debt accumulating, plus maps out our 4 stage approach to dealing with Technical Debt.
