nearshore@inetum.com

Technical debt might seem like a minor issue, but it’s a silent killer for businesses, contributing to significant financial losses.

Organizations that tackle their tech debt can reduce costs by as much as 39%, and companies that ignore it risk serious consequences, including reduced productivity, loss of talent, and increased security risks​.

It can stall innovation and lead to complex, hard-to-maintain systems. To mitigate its effects, companies should treat tech debt as part of their overall modernization strategy, engaging the entire organization— not just IT — in its management​.

  • Tech debt and „bad code” cost companies $385 billion every year [source]
  • The average developer spends more than 17 hours a week dealing with maintenance issues, such as debugging and refactoring [source]
  • Organizations today spend an average of 30% of their IT budgets on managing technical debt [source]
  • Nearly 70% of organizations view technical debt as having a high level of impact on their ability to innovate [source]
  • According to McKinsey, 60% of CTOs believe that in their organizations tech debt is rising [source]

Most common symptoms of tech debt: 

  1. Legacy code – old code, which hasn’t been updated in a while (old versions of frameworks/languages) 
  2. Insufficient testing – e.g. vulnerabilities which system owners aren’t aware of 
  3. Hard-coded values – Direct references to specific values in the code instead of variables or configurations. 
  4. Outdated libraries or dependencies – Using old versions of third-party libraries or dependencies that are no longer supported or have known issues 
  5. Lack of documentation – or outdated documentation 
  6. Suboptimal architecture – Difficulty in scaling the application to meet growing needs, poor performance, difficulties in adding new features or integrations with external tools 
  7. Inconsistent coding standards – for example a project where some developers use tabs and others use spaces for indentation can lead to messy and hard-to-read code. 
  8. Deferred upgrades – Postponing necessary upgrades to the system or infrastructure. 
  9. Tightly coupled components – Components or modules of the software are too interdependent, making changes in one component affect others. Changes in one module frequently cause unexpected issues in another. 
  10. Accumulated backlog of bugs – Known bugs or issues are not addressed and keep accumulating in the backlog, large number of user complaints 
  11. Not refactoring – not restructuring existing code to improve its readability, performance, or maintainability without changing its functionality.  
  12. Ignoring deprecated libraries – Continuously using libraries or frameworks that are outdated and no longer supported or recommended for use. 
  13. Code duplication – This refers to having multiple segments of code that perform the same functionality or are very similar, often due to copying and pasting code 
  14. Poorly defined user requirements – Frequent changes in development direction, confusion among the development team, dissatisfaction expressed by users. 
  15. Lack of code reviews – Without code reviews, the likelihood of bugs, inconsistent coding practices, and poor code quality increases. 

Typical tech debt reduction initiatives:

Refactoring Legacy Code

This involves restructuring existing code to improve its readability, maintainability, and efficiency without changing its external behavior. Refactoring helps eliminate redundant code, improve code clarity, and align with current best practices. 

Code Cleanup and Optimization

Performing systematic cleanup of codebases by removing unused variables, functions, or dependencies, and optimizing algorithms or database queries can significantly reduce technical debt.

Refactoring Database Schema

Restructuring database schemas to eliminate redundant data, improve normalization, and optimize queries can enhance data integrity, scalability, and performance.

Legacy System Modernization

Upgrading or replacing outdated systems, frameworks, or technologies with modern alternatives reduces maintenance overhead, enhances compatibility with newer technologies, and mitigates the risk of technical obsolescence. This may also include writing new apps/systems from scratch to replace the old ones. 

Migrating to Cloud Infrastructure

Transitioning from on-premises infrastructure to cloud services such as AWS, Azure, or Google Cloud Platform can provide scalability, flexibility, and cost efficiency. It also encourages the adoption of modern development practices and technologies.

Automated Code Reviews

Integrating automated code review tools into the development workflow helps identify code smells, violations of coding standards, and potential bugs early in the development process, facilitating timely corrective actions

Security Enhancements

Implementing security measures such as encryption, authentication, and authorization mechanisms, as well as conducting regular security audits and patches, reduces the risk of security breaches and technical debt associated with addressing security vulnerabilities retroactively.

Implementing Monitoring and Alerting

Deploying robust monitoring and alerting systems enables proactive detection and resolution of issues, minimizing downtime, and preventing the accumulation of technical debt caused by unresolved problems.

Documentation Improvement

Enhancing documentation, including code comments, API documentation, and system architecture diagrams, helps onboard new team members faster, improves code understanding, and reduces the time required for maintenance and troubleshooting.

Centralized Logging and Auditing

Implementing centralized logging and auditing mechanisms allows for comprehensive tracking of system activities, facilitating troubleshooting, compliance monitoring, and forensic analysis, thereby reducing technical debt related to undocumented or untraceable issues.

Dependency Updates and Management

Regularly updating and managing dependencies, including libraries, frameworks, and third-party services, helps mitigate security risks, leverage new features, and maintain compatibility with evolving technologies. 

User Experience (UX) Refinement

Iteratively refining user interfaces (UIs) and user experiences based on user feedback, usability testing, and industry best practices improves user satisfaction, reduces user errors, and mitigates the need for costly redesigns or re-implementations in the future.

Performance Optimization

Identifying and addressing performance bottlenecks in applications, databases, or infrastructure can enhance user experience, reduce response times, and optimize resource utilization.

Code Standardization

Establishing and enforcing coding standards and conventions across development teams promotes consistency, readability, and maintainability of codebases, reducing the risk of introducing technical debt due to divergent coding practices.

Fighting tech debt – real life examples

Explore our concise case studies across various industries to see how nearshore software development in Poland can effectively tackle technical debt and boost innovation.

HealthTech industry

Cloud-based hearing test platform

Updating the architecture of the remote hearing examination application. As part of the project, the application was migrated to the Azure cloud and its functionalities were expanded.

Industry 4.0

Cloud transformation

An application for automating the process of updating existing configurations and preparing new ones, along with the implementation of Microsoft Azure cloud infrastructure. The solution reduced the work time of two people from about 4 working days each month to approximately 2 hours.

Real Estate

CD-Control System development

Creation of an application supporting forecasting, planning, and budgeting processes. The solution ensured a uniform process of data entry and analysis of the effectiveness of actions across all departments.

Tech industry

Cloud Migration and Application development

Migration to the cloud while ensuring application continuity during the process, increasing stability and efficiency by organizing the entire infrastructure, meeting all security requirements, and ensuring scalability.

Engineering

Cloud Migration and Application development

Ensuring high performance, availability, infrastructure management, and automation through the development and migration of the system to cloud architecture, as well as changing the business model from on-premise to SaaS.

Tech industry

MDM System development

Migration of individual payloads after refactoring the system core and refreshing the user interface.

Tech industry, specialized in AI

AI system development

Implementation of a new version of the application for the conversational system, improvement of the code review process, and modification of automated tests (GUI and API) in accordance with good programming practices – we managed to shorten the testing time by half.

Untitled design

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Types of tech debt

Technical debt can be categorized into several types:

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