Understanding Technological Debt: Definition, Issues & Examples

Article | Podcast
Understanding Technological Debt: Definition, Issues & Examples

Definition and genesis

In the ever-evolving world of software development, a crucial yet often misunderstood concept is that of technical debt. Technical debt refers to the accumulation of suboptimal solutions, outdated practices, and shortcuts during the development of software systems.

While these compromises may seem harmless at first, they can lead to various issues, hindering progress, innovation, and the overall performance of a project.

The term “technical debt” was coined by Ward Cunningham in 1992. It describes the consequences of choosing suboptimal technological solutions, inefficient practices, or taking shortcuts during the development process. Over time, these decisions can lead to software vulnerabilities, decreased functionality, or an architecture ill-suited for future needs.

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The impact of technical debt

A study conducted by OutSystems in ten countries, including France, reveals the profound impact of technical debt in the software development industry. Approximately 69% of IT professionals view technical debt as a significant barrier to innovation. It affects the performance of 61% of companies and is expected to continue impacting them in the future.

The Concept of Technological Debt: Definition, Issues & Example

Technical debt is like an old, unreliable car. While it may still run, it’s costly to maintain and limits your plans due to its unpredictability, just as technical debt hampers agility and comes with a high cost.

Types of technical debt


Technical debt can take various forms. It often stems from language or framework complexities (52%), employee turnover (49%), or the need to meet tight deadlines (43%). Additionally, it can be categorized into two primary forms: code-level and architectural.

  • Code-Level Technical Debt: This type relates to coding practices, such as poor use of programming languages, incorrect module usage, or inefficient coding that impacts functionality.
  • Architectural Technical Debt: Here, the focus is on the overall system architecture. It occurs when initial design decisions limit the system’s adaptability for future changes.

Why technical debt goes unaddressed

Technical debt is frequently left unaddressed for several reasons:

  • Procrastination: Teams may postpone addressing technical debt, leading to complications down the line.
  • The developers’ priority: Developers may prioritize new features over addressing existing debt.
  • Client Misunderstanding: Clients may question the need to address debt, especially in the early stages of development.
  • MVP Approach: Minimum Viable Products (MVPs) often prioritize quick development, leaving technical debt for later.

The consequences of accumulating technical debt

Failure to address technical debt can result in:

  • Security issues due to unpatched vulnerabilities.
  • Reduced stability, causing the introduction of new bugs.
  • Limitations in system flexibility and adaptability.
  • Decreased overall productivity of development tasks.
  • Hindered innovation and project evolution, especially in rapidly changing technological landscapes.

Addressing technical debt requires cost analysis & strategic action


The cost of addressing technical debt depends on the scale of the project and its accumulated issues. Startups allocate approximately one-third of their budgets to handle technical debt, while larger companies may dedicate up to 41% of their resources to resolve these issues.

How to address technical debt

Prevention is the best strategy, but once it accumulates, addressing technical debt requires an incremental approach. Here are some key steps:

  • Maintain Good Documentation: Thorough documentation helps mitigate future technical debt by ensuring a clear understanding of the project’s intricacies.
  • Prioritize and Plan: Address technical debt progressively by allocating a portion of each sprint to tackle issues.
  • Test and Validate: Use tools and experienced developers to assess the project’s code and architecture, identifying potential areas of technical debt.


Technical debt is a common challenge in software development. While it may not always be visible to clients or end-users, it can significantly impact the performance and adaptability of a project. Addressing technical debt should be an ongoing effort, integral to the development process.

By recognizing the types of technical debt, understanding its impact, and adopting preventative strategies, software development teams can navigate the complexities of technical debt more effectively.

Uncover the vital concept of technical debt and its influence on software development in this enlightening podcast episode. Explore a comprehensive breakdown of technical debt, including its origins, the ramifications of neglecting it, and practical techniques for handling and mitigating technical debt within your software endeavors.

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