Technological debt is a consequence of neglecting IT solutions. This type of debt is not much different from financial debt – if you do not meet your obligations on time, the debt becomes dangerous. Therefore, it is particularly important to “pay it off” regularly and, above all, to prevent it, i.e. preventive measures. Otherwise, catching up with IT can become extremely difficult. In a report published by Polcom and Intel, “IT investments towards the development of Polish companies in 2021-2022 ” 65 percent of entrepreneurs identified digital debt as an obstacle that significantly hinders the development of their organizations.
Technological debt and its consequences
Avoidance of investment in new technologies, and incompetent and ill-considered creation of new technologies, results in a growing technology debt. IT infrastructure that is not adapted to modern standards and business requirements ceases to be efficient. And this generates costs that may not be visible at first glance. The need for constant change causes capital and operating expenses to rise.
One of the consequences of technological debt could be the stunting of the growth of small and medium-sized companies. SMEs, thanks to cloud solutions, now have the chance to access the latest technologies – the same ones that industry giants are successfully using. This makes it easy for them to increase competitiveness and level the playing field. However, technological debt is an obstacle to growth and innovation.
Moreover, staff shortages can also be caused by the phenomenon of unpaid technological debt. IT specialists pay attention to the company’s technological sophistication. If a company does not keep up with the progressive digitization process and does not use modern solutions, then employees may choose to move to digitally developed competitors.
How to fight IT debt?
Regular updates and thoughtful implementation of changes can benefit a company’s technological adaptation. By not having to make a major evolutionary leap in IT, you can optimize investment and operating costs in your business. What is beneficial for faster IT catch-up is the migration of resources to the cloud.
Cloud computing allows not only cost optimization , but also increased efficiency, improved business scalability and flexible adaptation of IT infrastructure to the current needs of the organization.
In order to manage digital debt effectively, it is necessary to constantly adapt to current customer needs and technology trends. Organizations must be open to change, because the more technologically complex a business is, the more important it becomes to pay off the debt.