TECH DEBT - THE IMPACT ON ROI

Gartner defines technical debt "as work that is “owed” to an IT system when teams “borrow” against long-term quality by making short-term sacrifices, taking short cuts, or using workarounds to meet delivery deadlines." These debts can impact system performance, scalability or resilience.

Introduction

In software development and other information technology fields, technical debt, also known as design debt or code debt, refers to the implied cost of additional rework caused by choosing an easy solution now instead of using a better approach that would take longer. 

Much like financial debt, technical debt can accrue 'interest' if not managed, complicating future modifications. Neglected technical debt may lead to increased software entropy and higher costs for later revisions. Although not inherently detrimental and sometimes essential for advancement, such as in a proof-of-concept, technical debt can often be undervalued, resulting in inadequate attention to its resolution.

Modifications to a codebase frequently require simultaneous updates in related areas or accompanying documentation. Incomplete changes contribute to technical debt, accumulating 'interest' that can complicate further development. This concept, while typically linked to software development, the concept of technical debt applies to other fields as well. 

In summary, technical debt refers to implementation choices that may be advantageous in the short term but create a technical context that could make future changes costlier or impossible, affecting internal system qualities such as maintainability and evolvability.

OAS - Tackling the Tech Debt issue

OAS identifies multiple common causes of technical debt and its potential for expansion, below are few examples:

• Deadline pressure: Under the pressure of looming deadlines, developers might take shortcuts to fulfill urgent demands, which can lead to less-than-ideal solutions.
• Lack of essential skills can result in improper implementation and deployment of a project. This may lead to inefficiencies or conflicts within the system, complicating maintenance and leading to avoidable downtime.
• Temporary Solutions: Developers might implement quick fixes intending to address them more thoroughly later, an action which is frequently overlooked.
• Neglecting best practices and project standards can lead to the accumulation of technical debt, making the code difficult to read, comprehend, and maintain.
• Utilizing outdated or obsolete technologies can result in accumulating technical debt, as they may become increasingly challenging to maintain and less compatible with contemporary systems.
• Insufficient testing of code can result in overlooked bugs or vulnerabilities, potentially leading to complications down the line.

The aforementioned are several examples of which the organization might be unaware of or choose to ignore, yet they can lead to Technical Debt and significantly impact the anticipated Return on Investment (ROI).

To guide organizations in addressing Tech Debt issues, OAS suggests the following steps:

• Initially, when addressing debt, focus on the areas that are currently the most problematic. Refactor portions of the code that hinder even minor modifications, rather than just the parts that are visually unappealing to some engineers.
• Rather than attempting a comprehensive overhaul all at once, it's more effective to gradually transition functionality from older systems and modernize them piece by piece.
• It's advisable to allow clear, common needs to surface naturally before refactoring and generalizing. This approach prevents the unnecessary complexity of premature flexibility and results in a more practical solution.
• Employ visibility tools to objectively quantify debt where possible, aiding in more informed decision-making regarding the aspects, timing, and extent of debt to address.
• Focus on data-driven analysis rather than engaging in emotional debates.
• Tech Debt is inevitable in any project however it's important to approach it calmly and manage it sustainably, rather than seeking instant solutions or falling for unrealistic quick fixes.
• Test everything prior to implementation. Conduct simulations on a regular basis to identify flaws within the project that can be corrected before the project is launched.

Final thoughts

Gartner in their research handbook titled:

Quick Answer: Can Public Cloud Migration Fix Infrastructure Technical Debt?

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questions "can cloud migration fix the Tech Debt debacle?"

In short - "Public Cloud Migration does not inherently solve traditional Technical Debt concerns, and it often introduces new ones" Gartner states.

Effective management is crucial. By proactively managing the technical debt induced by cloud adoption, one can ensure the project's success and the efficient utilization of cloud technology.

However, it is also crucial to recognize that if the organization is lacking the requisite skills or processes to manage technical debt it should consider enlisting the expertise of a third party proficient in the required technology. 

This can be achieved through a Service Level Agreement, which can ultimately lower costs, ensure proper project management, and significantly mitigate technical debt. 

Such a strategy enables leaders to sidestep exorbitant expenses and risks, while guaranteeing that the organization derives maximum benefit from its public cloud services.