Tech debt in outsourcing relationships: Who owns it and why it matters

Outsourcing gives you access to specialized talent and speeds up development, but there's one thing that often gets overlooked in the rush to deliver: technical debt.

Let’s start with a quick refresher. Technical debt is what happens when you choose a faster, cheaper solution instead of a more sustainable one. It’s the "quick fix" you put in place to meet a deadline, only to find that you’ll have to pay for it later in the form of more work, higher costs, and even product instability.

Now, if you’re outsourcing some or all of your tech development, the question is: Who owns the technical debt? And why does it matter?

So, who owns the debt?

In an ideal world, the vendor you’re working with would be responsible for making sure everything they build is scalable, efficient, and well-documented. But as we all know, things don’t always go according to plan, and sometimes the responsibility for tech debt isn’t so clear-cut.

Here’s how it generally plays out:

1. You (the client) own the debt In most cases, the client is ultimately responsible for the tech debt. If your outsourcing partner cuts corners to meet a deadline or deliver a feature quickly, you’re the one who has to deal with it down the line. For instance, if the vendor’s code is hard to maintain or doesn’t scale well, guess who’s left cleaning up the mess? That’s right—it’s you. And trust me, this can end up costing you a lot more than the original deal.
2. The vendor owns the debt Sometimes, the vendor can be held accountable, especially if their work doesn’t meet the agreed-upon standards. If they promised high-quality code and delivered something that’s riddled with issues, they might be responsible for fixing it. But this can get tricky, because often the responsibility for quality isn’t spelled out in detail, so you’ll need to work closely with them to make sure the work is up to snuff.
3. Shared ownership The most effective approach is shared ownership. This is where both the client and the vendor are in it together, regularly reviewing and managing tech debt as the project progresses. You want to keep an open line of communication and regularly address any issues as they come up, rather than letting them snowball into bigger problems later.

Why it really matters

If you don’t manage tech debt well in your outsourcing relationship, it can come back to haunt you. I’ve seen it firsthand—here are a few ways it can really hurt:

1. It costs more in the long run If you ignore technical debt, it will cost you more down the road. Maintenance becomes harder, scaling the product takes more time, and fixing issues becomes a bigger job than if you had just done it right in the first place. I’ve seen companies spend up to 20% more on maintaining systems because they didn’t address tech debt early on.
2. It slows down innovation When you have tech debt piling up, it’s like driving with the brakes on. You want to innovate and add new features, but the debt you’ve accumulated makes it harder and slower to do so. You might find yourself constantly fixing old problems instead of focusing on new opportunities. And in the fast-paced world of tech, this can leave you behind.
3. It hurts product quality When tech debt piles up, your product starts to show it. Performance suffers, bugs creep in, and stability goes out the window. Imagine you’ve outsourced the development of an e-commerce platform, but the backend code is sloppy and not optimized. During peak shopping seasons, your platform crashes. That’s the result of ignored technical debt, and it’s costly in terms of reputation and lost business.
4. Your team gets frustrated I’ve talked to developers who are constantly dealing with the fallout from someone else’s tech debt. They end up frustrated, wasting time on fixes instead of building new features. Over time, this can lead to burnout and even turnover, which is a huge cost for any company.

How to avoid these problems

So, how do you avoid falling into the trap of unchecked tech debt? Here are some things that have worked for me:

1. Set clear expectations from the start Make sure your contract with the vendor clearly defines expectations for code quality, scalability, and documentation. Don’t just focus on the delivery date and cost—be specific about what’s required in terms of long-term sustainability.
2. Stay in sync with your vendor Regular communication is key. Don’t wait until the end of the project to find out if your vendor’s work is going to cause problems down the line. Set up regular check-ins and code reviews to address potential issues before they become bigger problems.
3. Prioritize technical debt Don’t ignore it. In fact, make it a part of your development process. Address tech debt incrementally in each sprint, and make sure there’s time to refactor and improve code as part of ongoing maintenance.
4. Make knowledge transfer a priority One of the biggest risks with outsourcing is losing control over the knowledge. Make sure there’s clear documentation and knowledge sharing between the vendor and your internal team. If your internal team doesn’t understand the code, it’s a nightmare when something goes wrong.

Conclusion

Managing technical debt in outsourcing relationships is critical for long-term success. It’s not just about meeting deadlines — it’s about making sure the solution is sustainable and scalable for the future. By setting clear expectations, staying in sync with your vendor, and addressing technical debt as it arises, you can build a solid foundation for growth and avoid the costly pitfalls that come with ignoring it.

At Devico, we specialize in creating scalable, efficient, and sustainable tech solutions. Our team works closely with you to ensure your projects are delivered with quality and long-term success in mind.

Get in touch with us today to discuss how we can help you manage technical debt and build a strong foundation for future growth.

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