Is tech debt holding back your business?
A new study has found that choosing ‘inferior but fast’ solutions over the ‘right’ solution costs companies more than just money, as they put them at risk of ‘technical debt’.
The DXC Technology report explains that after a series of trade-offs and bad decisions, companies can end up in technology debt, which in turn leads to sub-optimization that can be difficult to undo.
The global survey of 750 C-suite IT executives found that almost half (46%) believed technology debt was hindering their ability to innovate and grow.
Poor technology choices hinder business growth
The report comes at an important time for the industry, as companies face difficult decisions about their service providers amid rising costs. Other recent studies have also found that companies may be spending too much on the wrong solutions.
According to the analysis, more than a third (37%) were able to retire redundant applications after addressing their technology debt, realizing significant financial savings. Another 39% noticed their cost savings.
The key to tackling the problem, DXC says, is to reframe the obstacle. Companies should see it as an opportunity to modernize their services and solutions, which has never been more prevalent in a landscape of new and emerging AI technologies.
Michael Corcoran, Global Lead for Analytics & Engineering at DXC Technology, said: “If business leaders do not commit to addressing technology debt now, it will result in a loss of resources, productivity and talent, and have huge implications for safety.”
The company also points to the value of a neutral third party, who could potentially take a broader view of the company, where having technology debt across multiple departments could make it difficult for executives to organize.