The Underlying Threat of Technical Debt in Software Development

Technical debt is a term often used in software development, but how big of an issue is it, and how often do companies face problems from large amounts of technical debt?

Understanding Technical Debt

Like any debt, technical debt becomes a problem when it isn't managed properly. A certain amount of technical debt is almost inevitable in the software development process, as no design is perfect and code can often become inflexible and degrade over time, leading to technical debt. However, the real danger lies in the lack of management and tracking of this debt, and the underestimation of the cost of repaying it. This can cause a system to become technically bankrupt, rendering it impossible to repair, as actions taken to rectify it may introduce more debt and create bugs and performance issues.

Prevalence of Technical Debt

The prevalence of technical debt is quite high, with 90% of businesses, even those not specific to software, having at least one codebase that is technically bankrupt. These businesses are trapped in cycles of desperate feature-adding and continuous bug-fixing, leading to an ever-increasing cost of ownership and development time that surpasses what is necessary. As the debt accumulates, the cost of fixing it also increases. Eventually, systems begin to crash and exhibit logical and stability issues, similar to codebases in software companies. Even in the software industry, around 50% of codebases may be beyond economical repair.

When Does Technical Debt Become Catastrophic?

As technical debt deepens, the system becomes so interconnected and poorly structured that isolating and improving any part becomes a daunting task. This often leads to the creation of more debt, more bugs, and performance issues, making the system toxic and practically unfixable. Companies may try to throw more hardware, more people, and more money at the problem, but these efforts rarely provide a lasting solution. Even under extreme pressure, it may be too complex and challenging for developers to effect such a precise and delicate operation.

Consequences of Technical Debt

Without proper attention and management, technical debt can lead to catastrophic failures. Systems begin to degrade, performance issues become apparent, and data loss can occur. At some point, the system will crash, and as the problem becomes visible, companies are likely to undergo a rewrite or face downfall. The failure to show relevant results, ditch sessions during purchases, and lack of new features can become the tipping point. Financial issues, a shortage of human resources, or market conditions may be cited as reasons for failure, but these are often a result of years of accumulated technical debt.

Real-World Examples of Technical Debt Catastrophes

A consultant has firsthand experience with businesses that failed due to technical debt over the past eight years. These failures were often covered up by publicly cited reasons, such as market conditions, financial issues, or human resource shortages. However, the root cause was almost always technical debt. One major airline's system failed due to a lack of relevant search results, while another company's software issues led to multiple failed software audits and the inability to raise the necessary funds for a rewrite. Technical debt can be a silent killer, resulting in the silent deaths of many businesses over the next decade, and it may be the single most frequent reason for the failure of established businesses. The lack of agility in dealing with technical debt leads to obsolescence and irrelevance within the industry. Companies that can't adapt and evolve will struggle to remain competitive and may eventually fail.