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Research Report

The Causes and Impacts of Technical Debt

Technical debt represents the cost companies accrue through outdated and highly customized technology, and the lost opportunity cost of not having modern technology that offers more capabilities and flexibility. For technology companies, technical debt can lead to high ownership costs, slower time to value, a loss of competitive advantage, and the inability to transform. TSIA recently completed a survey on the topic of technical debt, and this report will outline the major contributors of technical debt, which systems are most affected, and how technical debt is impacting companies. With aggressive transformation plans, tech firms need to not only create a plan to eliminate technical debt, but also take steps to not create more debt as new investments in technology are made.

Authored By:

John Rasgdale

Distinguished Researcher, Vice President, Technology Ecosystems, TSIA

Publish Date: October 20, 2023

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