7 Signs Your Company is Drowning in Technical Debt and Effective Solutions to Regain Control

It was supposed to be a quick fix – a temporary workaround to get that critical system up and running again. But before long, this “temporary” solution had become a permanent fixture, creating a web of fragmented, outdated technologies holding the company back.

This is the insidious nature of technical debt. What starts as an easy, expedient choice often snowballs into a much larger problem, silently draining your productivity, security, and bottom line. A Deloitte study revealed that 70% of IT leaders view technical debt as a significant barrier to innovation and market responsiveness.

If this scenario sounds all too familiar, your company may be drowning in technical debt – and it's time to take action. In this article, we'll explore the seven telltale signs that technical debt is weighing you down and how to regain control of your technology systems. So, let’s dig in.

Understanding Technical Debt

What is Technical Debt?

In software development, technical debt is the cost of choosing an easy, quick solution over a better, more sustainable long-term approach. It results from suboptimal design decisions, outdated code, incomplete features, and poor coding practices. As companies continue to patch and band-aid their legacy systems, technical debt accumulates quietly. Initially, minor workarounds become a tangled web of mismatched technologies and inefficient processes.

Technical debt doesn't dissolve on its own—it compounds, escalating maintenance costs, heightening security risks, and diminishing productivity. The longer it's left unaddressed, the more costly and complex it becomes.

To lead in the future, businesses must move away from piecemeal approaches to technical debt and adopt integrated strategies.

7 Signs You're Drowning in Technical Debt

So, how can you tell if your company is drowning in technical debt? Here are seven telltale signs you need help:

1. Frequent system crashes and downtime: Outdated, unstable systems are the critical indicators of technical debt. When your core technologies are past their prime, you can expect more frequent system failures, crashes, and periods of downtime. This not only disrupts productivity but your employees' morale and bottom line – a single hour of downtime can cost a business an average of $300,000, according to a Gartner study.
2. Excessive manual workarounds: As your systems become more fragmented and inflexible, your employees are forced to resort to manual, error-prone processes to get their work done. Whether re-entering data across multiple platforms or creating spreadsheet-based reporting, these workarounds clearly indicate that your technology is holding you back.
3. Difficulty integrating new tools and technologies: When your existing systems are outdated and siloed, adopting new, innovative technologies becomes increasingly challenging. This limits your ability to improve efficiency and productivity and puts you at a competitive disadvantage as more agile competitors leverage the latest tools and capabilities.
4. Skyrocketing IT maintenance costs: Maintaining a patchwork of legacy systems is expensive. From software licenses and hardware upgrades to the specialized IT and engineering staff required to keep everything running, the costs of technical debt can quickly spiral out of control. Gartner estimates that organizations spend 75% of their IT budgets just maintaining existing systems.
5. Slow response to market changes: Outdated, inflexible technology makes it incredibly difficult to adapt to evolving market conditions, customer demands, and competitive threats. When you're bogged down by technical debt, even the simple changes - like launching a new product feature or updating a customer-facing application - can take months, putting you at a significant disadvantage.
6. Frustrated employees and customers: The impact of technical debt isn't just felt on your balance sheet - it also takes a toll on your employees and customers. Unreliable systems, inefficient processes, and subpar user experiences can lead to widespread frustration, diminished productivity, and a tarnished brand reputation.
7. Increased security risks: Outdated, unpatched systems are a prime target for cybercriminals. When you're saddled with technical debt, you're exponentially more vulnerable to data breaches, ransomware attacks, and other security incidents that can have devastating consequences for your business.

The True Cost of Technical Debt

While the signs of technical debt may be obvious, the true impact on your business is often more challenging to quantify. But the numbers don't lie – technical debt costs companies billions annually.

According to a recent Consortium for Information & Software Quality study, the total cost of technical debt in the United States alone is estimated at a staggering $2.13 trillion. That's trillion, with a "t" – a figure nearly as prominent as the entire GDP of Italy. And the problem is only getting worse. The same study found that technical debt is growing at a rate of 24% per year, outpacing the growth of the overall US economy.

In other words, the longer you wait to address your technical debt, the more it will continue to compound and erode your bottom line. However, the financial impact is just the tip of the iceberg.

Technical debt also heavily affects your organization's productivity, innovation, and competitive edge. When your systems are fragmented and outdated, employees are forced to waste valuable time on manual workarounds and inefficient processes.? And your ability to respond to changing market conditions or adopt new technologies is severely impacted.

The result? Lost opportunities, diminished customer satisfaction, and a widening gap between you and your more agile competitors. It's a vicious cycle that, if left unchecked, can ultimately threaten the very survival of your business.

Steps to Overcome Technical Debt

So, how can you break free from the grip of technical debt and regain control of your technology? Here are seven strategic steps we advise clients to do:

1. Conduct a comprehensive assessment: The first step is to get a clear, objective understanding of your current technology ecosystem. Work with a trusted partner like Infoshape to identify your existing systems, understand how they're connected (or not), and quantify the associated costs and risks.
2. Prioritize your pain points: Once you have a complete picture of your technical debt, it's time to prioritize the most pressing issues. Focus first on the areas causing the most significant disruption to your business operations and customer experience.
3. Develop a strategic roadmap: Work with your technology partner to create a detailed plan for consolidating and modernizing your systems. This roadmap should outline your specific milestones, timelines, and resource requirements.
4. Modernize your infrastructure: With a solid plan in place, it's time to start migrating your legacy systems to new, integrated solutions. This may involve everything from database migrations and application modernization to cloud adoption and API integrations.
5. Automate and streamline your processes: As you modernize your technology foundation, look for opportunities to automate manual, error-prone tasks and streamline your core business and reporting processes. This will improve efficiency and free up your employees to focus on more strategic initiatives.

Case Study: Victorian Finance

Challenge

Victorian Finance, a mortgage lending company, was burdened by an outdated loan processing system reliant on inefficient and manual processes.

Solution

Infoshape Software addressed this challenge and developed Mortgage Tracker, which:

• Seamlessly integrates with existing loan origination software to provide real-time updates and comprehensive tracking of all loans.
• Automates reporting and eliminates the need for manual spreadsheet maintenance, providing critical insights into the pipeline, loan officer metrics, and monthly scorecards.
• Generates and assigns tasks based on predefined rules to ensure timely progression and closure of loans.

Result

The solution enabled Victorian Finance to:

• Streamline workflows and increase operational efficiencies.
• Enhance the management's ability to oversee and direct growth effectively due to the automation of critical reporting processes.
• Improve overall business operations and cost management.

For a more detailed exploration of how Mortgage Tracker transformed Victorian Finance's operations, visit the full case study here.

Implementing Technical Debt Solutions to Enhance Business Efficiency

The good news is?that?technical debt is a solvable problem. By partnering with the right technology experts, you can untangle your legacy systems, integrate your data, and modernize your infrastructure – while significantly reducing costs and unlocking new growth opportunities.

That's where Infoshape Software comes in. As experts in software development and IT modernization, we've helped many organizations like yours overcome technical debt challenges and transform their technology systems.

Our proven approach begins with a comprehensive assessment of your existing systems and infrastructure. We'll work closely with your team to identify the root causes of your technical debt, quantify the associated costs and risks, and develop a strategic roadmap for consolidation and integration. From there, our skilled developers and engineers will get to work, leveraging the latest tools and methodologies to migrate your legacy systems, unify your data, and implement new, streamlined processes.

Throughout the process, we'll ensure minimal disruption to your day-to-day operations so you can continue serving your customers without interruption. But the benefits of working with Infoshape go far beyond cleaning up your technical debt.

By modernizing your technology foundation, we'll also help you:

• Improve operational efficiency and productivity.
• Enhance security and compliance.
• Increase agility and responsiveness to market changes.
• Unlock new opportunities for innovation and growth.

Don't let technical debt constrain your business. Schedule a consultation today and take the first step towards liberating your business from the burdens of technical debt.