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RevStar Consulting | The Alarming Reality of Technical Debt | blog image

It's no secret that technical debt can be a huge issue for companies. But what may be less obvious is the extent to which this debt can damage a business. In this post, we'll explore the reasons why technical debt is alarming for businesses. Keep reading.

1. Technical Debt Can Lead to Technical Bankruptcy.

Technical debt can lead to technical bankruptcy. When a company incurs technical debt, it means that they have borrowed money from the future in order to meet present needs. This can be done by shortcutting development processes, using inferior technology, or taking on too much complexity. Eventually, the debt will need to be repaid, and this repayment can come in the form of higher maintenance costs, lost productivity, or even technical bankruptcy. Technical bankruptcy occurs when a company is unable to repay its technical debt and is forced to declare bankruptcy. This can be a devastating blow to a company, as it can lead to the loss of jobs, customers, and even shareholders. Therefore, it is important for companies to be aware of the risks of taking on technical debt and to plan for how they will repay it in the future.

2. Technical Debt Can Make It Difficult and Costly To Make Changes to a System.

While technical debt can help a company save time and money in the short term, it can eventually lead to major problems. For example, if a company decides to make changes to a system that has a lot of technical debt, it may find that the process is much more difficult and costly than it anticipated. In some cases, technical debt can even make it impossible to make certain changes without completely rewriting the code. As a result, technical debt can have a significant impact on a company's bottom line. While technical debt is sometimes unavoidable, it's important for companies to be aware of the risks involved. Otherwise, they may find themselves in a situation where they are unable to make the changes that they need to stay competitive.

3. Technical Debt Can Cause Frustration and Conflict Among Team Members

Technical debt is the amount of time and effort that a team has to spend on maintaining and updating its technical infrastructure. This can include anything from upgrading software to fixing bugs. When technical debt accumulates, it can cause frustration and conflict among team members. This is because everyone has different priorities for how the debt should be repaid. Some people may want to focus on fixing critical bugs, while others may want to upgrade to new versions of software. As a result, technical debt can lead to disagreements and resentment within a team. If left unmanaged, technical debt can eventually derail a project entirely. That's why it's important for teams to regularly review their technical debt and agree on a plan for repayment. By doing so, they can avoid the negative consequences of technical debt and keep their projects on track.


As we’ve seen, the reality of technical debt is alarming. Companies are struggling to keep up with the growing demand for new features and products while also trying to pay down their debt. This is causing tension within organizations and can lead to missed opportunities in the market. But there is hope. There are ways that companies can overcome their technical debt and thrive in today’s digital age. We’ve outlined a few approaches that you can take, but each company will need to find its own solution based on its unique situation. The important thing is to start somewhere and make progress toward reducing your technical debt.

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