Technical Debt

Technical Debt: Cutting Corners Today, Paying for It Tomorrow

Henry Evans
Henry Evans
Updated on: May 7, 2026
8 min read
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You have an intriguing project idea, which is going to take the market by storm! Sure thing, you want to start implementation as soon as possible. And that’s perfectly understandable. So, you set tight deadlines and push your development team.

However, tapping into implementation at the drop of a hat is not the best choice. You see, by prioritizing only fast delivery, your team may miss crucial steps like testing, debugging, or just write messy code, which can cause havoc.

Key Highlights

  • If the average cost of fixing bugs compared to overall development costs is more than 20%, it means your tech debt is constantly accumulating.
  • Sometimes, technical debt is caused unintentionally, mostly because of factors like lack of team experience, poor design, or incorrect technology choices.
  • Regular refactoring helps your team enhance the codebase structure, resolve issues faster, and significantly improve maintainability.
  • By modernizing a legacy system, you can make it more scalable and maintainable, thus both reducing current technical debt and preventing it from future growth.

While fast delivery of a custom solution is preferable, your product quality is of utmost importance. Hence, if you decide to solely focus on fast time to market, you will definitely end up with technical debt.

Well, the word “debt” itself doesn’t bode well, meaning it is going to cause you plenty of headaches. So, how to manage technical debt and reduce the serious consequences it may cause? Let’s jump into our topic to find out.

What Is Technical Debt? Understanding The Metaphor

What Is Technical Debt?

There are several definitions of technical debt you can come across on the web. But let’s focus on the one suggested by the founder of this term, Ward Cunningham.

Back in 1992, Cunningham was working on the WyStack product and needed to explain to stakeholders how prioritizing speed over quality could become a serious issue in the future, due to the need for resource-intensive code revisions. To make this clear, he compared it to financial debt.

Generally speaking, it helps you move faster in the short term, but the longer you leave it unpaid, the more interest you have to pay. The same applies to code. When you have too many things to adjust, you’ll most likely end up with growing technical debt and may need to open your pocket wider to cover the cost of fixing it.

So, what is technical debt in software development? It’s a budget for maintaining a software system that you know in advance is not perfect. Yes, your team can sort things out somehow and craft some solution with poor code, which could then be hard to fix.

“Shipping first-time code is like going into debt. A little debt speeds development so long as it is paid back promptly with refactoring. The danger occurs when the debt is not repaid.”

— Ward Cunningham, a computer programmer and one of the authors of the Agile Manifesto

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The Price of Speed: How Technical Debt Impacts Your Business?

“Haste makes waste!” This wisdom literally describes the impact of tech debt on software implementation. Generally speaking, if you overlook measuring critical factors like quality assurance and security throughout the software development lifecycle, or do not focus on a solid UI/UX, you may end up with a system that struggles with scalability and performance. And maintaining such a solution is neither going to be cheap nor straightforward.

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For example, aiming to deliver your warehouse management app right away, your team overlooks unit and integration tests. It leads to code duplication and bugs. Every little change causes some breakages. So, instead of employing new features to expand the app’s functionality, your team wastes precious time on fixing issues.

Additionally, being focused on rapid delivery, your team may miss the documentation part, which will make onboarding new developers slower and more challenging in the future, as they will have no clue how the system works. Obviously, sooner or later, they will figure it out, but it will take time to grasp the intricacies.

All these issues emerge due to the debt you borrow to deliver your solution faster. Now you have launched your product, but you do not have the desired results or satisfied customers, of course. With that being said, you either have to go back to square one or tap into big changes. Both scenarios require extra time and expenses.

How does technical debt impact software performance and scalability?

When focusing solely on rapid product implementation, developers may overlook crucial factors such as code quality, system architecture, testing, and scalability. Indeed, these factors are essential for ensuring the software runs efficiently and can scale effortlessly.

Overall, the more technical debt accumulates, the harder it becomes to maintain the system. This, of course, compromises long-term software performance and scalability.

Types of Technical Debt: Can You Completely Escape It, or Is It Bound to Happen?

Types of Technical Debt: Can You Completely Escape It, or Is It Bound to Happen?

Well, while you may think that everything is clear with tech debt and there can’t be too many variations of such a metaphor to consider, there are. Actually, you can come across 10 types of tech debt on the web. But we truly believe that these two deserve particular attention:

  • Intentional: Well, this is the case we’ve already explored. You take that debt on purpose to speed up your product launch. So, your team closes its eyes to some bugs and issues during MVP development with the intention of fixing them later on.
  • Unintentional: Your team may not plan to go on with bugs and handle them afterward. However, they may bump into some issues because of numerous factors such as a lack of experience, poor design, wrong tech stack choice, etc.

So, doesn’t it mean that you can’t escape technical debt on the whole? You see, software development is a dynamic process. With tight deadlines, priority shifts, and requirement changes, even highly professional and trustworthy teams may face challenges.

Eventually, not all tech debts are the same. Some can be solved effectively, while others may be much harder to address. The key is how exactly your team conducts the assessment of technical debt and how they plan on minimizing it.

Well, this is a standalone topic, so stick around, and we’ll cover the best technical debt management strategies shortly. But before that, let’s first look at how to identify serious code issues in your system and measure whether they’re turning into a major concern.

Before It’s Too Late: How to Identify Technical Debt in Your System?

How to Identify Technical Debt in Your System?

You can’t fix what you don’t see, right? And given that tech debt is almost inevitable, it’s critical to detect it in your system early on, so you can manage it promptly. Below are the core steps to assist you along the way:

  • Review code: One of the core causes of technical debt is poor-quality and redundant code. So, utilize analytic tools for code reviews. To simplify technical debt evaluation, it’s worth keeping an eye on CodeClimate, SonarQube, and ESLint, which automatically measure metrics such as code complexity, duplication, and maintainability index.
  • Document the process: When all changes and past bugs are documented, it becomes much easier to make informed decisions and reduce future issues. This will help your team identify and address areas of technical debt early on.
  • Assess system architecture: If parts of your system are overly dependent on one another or your infrastructure is outdated, then you will definitely end up with technical debt. That is because such a system is pretty hard to update, scale, and maintain.
  • Collect developer feedback: This helps identify the pain points within your team, allowing you to understand what is slowing down development and which changes should be made to improve your system’s scalability.

When Technical Debt Crosses the Line: How to Measure and Act Before It’s Too Late?

How to Measure and Act Before It’s Too Late?

After identifying signs of code issues in your system, it’s the right time to measure how serious the technical debt has become. Let’s zoom in on the core metrics that can pinpoint how much debt your system has accumulated.

  • Technical debt ratio (TDR): It measures the average cost of fixing bugs compared to the overall development costs. If the TDR is higher than 20%, it means your tech debt is constantly accumulating. This is the right time to take action before it becomes a bigger headache.
  • Issue rate: This metric shows the number of bugs and reported issues in your codebase. If 15% or more of your overall codebase has issues, it‘s a sign of growing debt.
  • Change failure rate: With this metric in place, you can calculate the percentage of failed changes or deployments. A failure rate of 16% is already a bad sign.

It’s Time to Settle the Bill! Best Strategies to Reduce Technical Debt

Well, you’ve spotted some code issues in your system, so now it’s time to manage them. Of course, dealing with technical debt is not going to be straightforward, but here are some strategies that will lead to its reduction.

1. Consider Code Refactoring

Consider Code Refactoring

This approach is all about restructuring existing code to improve its readability, efficiency, and modularity without changing its functionality.

For example, if you have redundant code across different areas, refactoring can serve as a real helping hand. Specifically, it divides the code into reusable functions or classes, reducing duplication and simplifying code updates.

Making regular refactoring an integral part of your development process allows your team to improve the codebase structure, quickly fix issues, and elevate maintainability.

How does refactoring help reduce technical debt?

Refactoring helps reduce technical debt by improving the structure and readability of the code without changing its functionality. It makes the code easier to maintain, update, and grow in the future, preventing failures and increasing system performance.

2. Employ Automation

Employ Automation

It’s hard to mention areas in business operations where automation doesn’t come to save the day. The same is true for debt management. Just consider how much it will speed up the testing process. Let alone the fact that manual testing is highly prone to errors, and even small overlooked bugs can cause serious issues in the future.

With that being said, incorporating automated tests into your development process can elevate your workflow and decrease code debt.

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3. Leverage Technical Debt Tracking Tools

Leverade Technical Debt Track Tools

One effective strategy in addressing technical debt is to leverage relevant tools that are proven to be highly beneficial in analyzing the codebase to detect issues like poor code, deprecated dependencies, or inefficient structures.

Generally speaking, today, you can find plenty of tools designed specifically for tracking technical debt. Take SonarQube, for example, it’s an excellent option for code quality analysis. CodeScene, on the other hand, is another leading software for managing technical debt, which is specifically highly effective in identifying serious bugs in your codebase.

Many businesses, especially those with complex systems, today prefer custom systems to manage technical debt. That is because these solutions provide more options for advanced system performance tracking, real-time insights, and automation specific to their unique needs. As such, businesses can address code issues more effectively, streamline maintenance, and improve overall system scalability.

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4. Modernize Legacy System

4. Modernize Legacy System

Another prominent way to reduce code issues is by modernizing a legacy system. Actually, it can both assist in minimizing the causes of technical debt and prevent it from happening in the future.

You see, legacy systems rely on old programming languages and frameworks, which typically fail when it comes to optimization and scalability. This, in turn, makes maintenance and updates pretty tough, thus increasing technical debt over time.

Tap into our complete guide on Legacy System Modernization

5. Hire a Skilled Team

Hire Skilled Team

We’ve already highlighted that, in some cases, tech debt can happen unintentionally, and this mostly occurs due to the lack of experience within your team. While you can’t prevent issues from happening altogether, the real question is how you’re going to deal with them.

With a skilled and trained team by your side, the chances of accumulating severe technical debt are significantly reduced. Professional developers may sort things out more easily and address any issues right away.

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6. Avoid Sudden Schedule Changes

6. Avoid Sudden Schedule Changes

Let’s admit, sometimes it’s pretty hard to resist pushing developers and making changes to schedules. Sure, you want to speed up your product implementation, but the truth is that sudden schedule changes will make your team feel overwhelmed, confused, and stressed.

No matter how skilled your team is, when they scramble to deliver your desired features to tight deadlines, many crucial factors for a successful project implementation, like quality, testing, and documentation, will be compromised. This will lay the ground for the tech debt accumulation.

How to prevent technical debt?

If you want to prevent technical debt, you primarily need to ensure your codebase remains maintainable and scalable. The following steps will help you get to the point:

  • Conduct regular refactoring
  • Employ automated testing
  • Modernize your legacy system
  • Collaborate with a professional and trustworthy team
  • Avoid changing deadlines and rushing your team

Balancing Speed and Quality in Your Solution

Covering so many aspects of tech debt, we’re probably on the same page that it’s inevitable, especially when you’re rushing to speed up the product launch. The key is how you address it and prevent further accumulation.

The first and foremost thing you need is a skilled team by your side because they can effectively manage and address code issues, ensuring your project stays on track and maintains high quality.

With many years of proven experience under our belt in providing custom software development services to a wide range of businesses, we know exactly how to deliver your product with optimal speed without compromising its performance.

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