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Technical Debt: What It Is, Types, Effective Strategies and Examples

December 19th, 2023
What is Technical Debt.


Reducing technical debt is crucial for ensuring the long-term success, stability, and efficiency of software projects. Here are a few reasons why:

  • Code Quality and Maintainability

  • Risk Mitigation

  • Enhanced Productivity

  • Reduced Maintenance Costs

  • Improved User Experience

  • Agility and Innovation

  • Competitive Advantage


Technical debt is an integral part of software development since, during almost every project, there is bound to be a few bugs that need fixing, or it might need maintenance. 

Tech debt is the cost associated with this future rework. There are many reasons why this happens. It usually occurs when software developers have a tight deadline or cut corners and take shortcuts. 

There are several measures one can take to prevent this; however, there still tends to be a small percent of technical debt. This article provides more details about this, which is often referred to as tech debt and code debt. It also explains how to deal with it and prevent it. 

What is Technical Debt?

Software development teams tend to cut corners or attempt to complete their tasks fast and end up making a mistake of some kind. Such errors tend to surface in the future, at times due to the failure to consider a certain scenario. Thus, tech debt is the future cost of rework that might be necessary due to the bugs or code issues that are likely to come to light. 

Tech debt can equate to many things, like loss of business or loss of time, money, and resources. Some of the reasons for this include:

  • Choosing speed over quality

  • Implementing workarounds instead of solving an issue

  • Legacy code

  • Lack of documentation

  • Bugs

Technical debt is not inherently harmful; sometimes, it's a deliberate decision made to meet deadlines or launch a product quickly. However, if not managed properly, accumulated code debt can slow down development, increase maintenance costs, and impede the ability to innovate or add new features in the future.

Examples of tech debt include:

  • Code Duplication: Repeating similar code across multiple parts of the software rather than creating reusable components.

  • Lack of Documentation: Inadequate or outdated documentation that complicates understanding and maintenance of the codebase.

  • Inefficient Algorithms or Designs: Choosing quick but less efficient solutions that might impact the software's performance.

  • Not Addressing Bugs or Issues: Leaving known issues unresolved, leading to increased complexity and risk of further problems.

Importance of Reducing Technical Debt

It is crucial to the successful operation of any business to reduce technical debt or take necessary measures to avoid it. There can be profound consequences of accumulating too much code debt. It can be as bad as losing a client, but it more often than not leads to an increase in development cost and loss of valuable developer time. 

Importance of Reducing Technical Debt.

Here are a few good reasons why it is vital that you make a proactive effort to reduce the code debt: 

  • It decreases the time and effort required for future updates or enhancements.

  • It enhances the reliability of the product and reduces the chances of unexpected failures.

  • Code with minimal code debt is more scalable and adaptable to changing requirements.

  • Addressing it reduces the risk of future problems and potential system failures in the future. 

  • It minimizes the need for extensive bug fixing, rework, and ongoing maintenance, ultimately reducing the total cost of ownership.

  • This can lead to improved morale, increased job satisfaction, and better team productivity.

  • A product with fewer bugs, better performance, and faster feature delivery contributes to higher customer satisfaction and loyalty.

  • Software maintained with reduced tech debt can be more competitive in the market.

Types of Technical Debt

There are many different types of tech debt, and it is important to understand them in order to take action. By better understanding it, a business can prioritize the issues and address them accordingly. 

Types of Technical Debt.

Some of the popular types of tech debt are: 

  • Code Debt: Repeated code segments that could be refactored into reusable functions or components. Low-quality code that lacks readability, documentation, or adherence to coding standards. Using outdated or unsupported libraries could lead to security vulnerabilities or compatibility issues.

  • Design Debt: Monolithic design or tightly coupled components that hinder scalability and maintenance. Architecture that doesn't align with the evolving needs of the software making it difficult to adapt to changes.

  • Testing Debt: Not covering all functionalities or edge cases in testing, leading to undetected bugs. Relying too much on manual testing rather than automated tests slows down development and increases the risk of errors.

  • Documentation Debt: Lack of proper documentation that can hinder understanding and future development. Documentation that doesn't reflect the current state of the software makes it hard for new developers to understand the codebase. The absence of essential documentation makes it challenging to maintain or extend the software.

  • Infrastructure Debt: Issues related to the underlying infrastructure or technical environment. Using obsolete technologies that limit the software's capabilities or hinder performance. Using obsolete technologies that restrict the software's capabilities or hinder performance.

  • Intentional Tech Debt: At times, developers make tough decisions despite knowing it will lead to code debt. Such decisions are usually made with the intention of going back to it at a suitable time. However, it might also be intentional, with no intention to rectify it. This can be for a quick fix or to meet a design when the code is too complex. 

  • Unintentional Tech Debt: As the name suggests, this arises from poor code that is unintentionally written. It might also be because of code that is not tested or reviewed.  

  • Environmental Code Debt: This usually occurs over a substantial period of time. There are several reasons for this, which are not directly linked to the code or developers. It is due to environmental factors like the operating system, third-party APIs, or other dependencies.

What Is The Cause?

There are many types of tech debt that can accumulate due to various factors throughout the software development process. 

The Impact of Tech Debt.

Here are typical causes:

  • Ongoing development: Businesses have been developing robust software solutions for a very long time and continuously improve them over time. However, with advancements in technology, the older systems tend to become old and inefficient. This tends to affect the performance of the application and all that it is associated with. 

  • Unclear Requirements: Unclear or constantly changing requirements can result in developers taking shortcuts to accommodate these changes quickly, leading to code debt. The same can be said about last-minute changes or requirements, especially when on a tight deadline. This often stretches the firm's resources, and these last-minute requirements are done in haste and might not even be tested in the right manner. 

  • Business pressure: It is not uncommon for businesses to face pressure, especially startups. This leads to firms rushing to release their software product, thus resulting in a high number of bugs and errors. 

  • Lack of expertise: Software professionals strive to stay abreast of the latest updates in technologies. However, not everyone has the technical knowledge or ability to comprehend how things work. This increases the chances of bugs and technical issues arising in the future. Thus, IT professionals lacking in experience and technical knowledge also rake up the tech debt.

  • Integrating modules: There is an increasing use of object-oriented programming concepts, leading to the development of independent modules that are easy to replace or update. However, it is not uncommon for modules to be dependent on each other, and often, changes made down the line will cause a large amount of rework due to their interdependency. 

  • Lack of or insufficient testing: The lack of testing or failure to conduct regression testing will usually result in many bugs surfacing down the line. This will result in tech debt and cost the business time & money to fix.

  • Lack of Communication and Collaboration: Poor communication among team members or between developers and stakeholders can lead to misunderstandings, resulting in suboptimal decisions and code implementations.

  • Simultaneous development: The development strategy for a large project will usually involve a team of multiple developers working simultaneously on various sections of the project. With different teams handling different sections, the chances of miscommunication are high. However, this only comes to light at the end of the project when the code is merged into a single code base. 

  • Delayed code refactoring: Code refactoring is an integral process of maintaining large software projects. This is the process of improving the code structure to optimize the performance and prepare for future changes. However, it is not uncommon for this task to be pushed back due to an increase in workload. This often leads to an increase in tech debt, making it harder to update the software with the new technologies. 

  • Lack of standards: There are several measures one can take to ensure developers follow best coding practices and code to specific standards. However, it often goes wrong for the programming teams who use shortcuts, especially when nearing tight deadlines. Sub-standard coding only leads to having to spend more time and money on software development in the future. 

  • Outsourced software developers:  Outsourcing software development tasks often means having to refactor the code. However, in the case of heavy workloads, this task may be delayed, resulting in a big backlog of work. 

  • Defective leadership: Software projects need a good and experienced team leader, one who can assist with coding issues and guide the team. A failure to lead the team in the right manner is bound to result in issues down the line and greater tech debt. 

  • Tight Deadlines: Rushing to meet strict deadlines might lead to taking shortcuts or implementing quick fixes to deliver on time. This often results in suboptimal code or solutions.

  • Lack of Planning: Insufficient planning or changing requirements can cause developers to make short-term decisions that disregard long-term implications. This can lead to code that isn’t scalable or easily maintainable.

  • Underestimating Complexity: Ignoring the complexity of certain features or functionalities can result in oversimplified implementations that create code debt.

  • Pressure to Ship Features Quickly: The pressure to release new features rapidly can lead to prioritizing speed over quality, resulting in accumulated tech debt.

  • Legacy Systems: Working with legacy systems or outdated codebases that lack proper documentation and modern development practices can lead to the accumulation of tech debt.

  • Ad Hoc Changes: Making unplanned or ad-hoc changes without considering the broader impact on the codebase can introduce code debt.

Consequences of Technical Debt

Ignoring tech debt is a huge financial risk for any business and is something they cannot afford. It often leads to a decrease in productivity and lowers customer satisfaction. It will mean more bugs, higher costs, greater security issues, and usability issues. 

Some of the other consequences of code debt include an increase in maintenance cost, an increase in risk of failure, bad code quality, and lack of innovation.

Empower your software for long-term success!

Start reducing technical debt today.
Our team specializes in identifying, prioritizing, and eliminating technical debt to ensure a robust, high-quality codebase.

Tips To Manage Technical Debt

Managing tech debt is essential for maintaining a healthy and sustainable software development process. The best method to manage code debt is to first assess it by establishing the time necessary to reduce and fix it. It is vital you maintain clear communication with the developers and the entire team to implement and prioritize tasks like refactoring the code, automating the testing, and improving the quality of work. 

It is crucial to reduce code debt and make an active effort to detect the growing tech debt to better manage it. 

How to reduce code debt? 

How to reduce code debt?.
  • Keep a lookout for signs of code debt in your codebase.

  • Establish the areas that impact the stability and performance of your project the most and prioritize them.

  • Do not avoid the testing stage during software development. Automated testing is very effective for this purpose.

  • Maintain high coding standards at all times.

  • Include the process of refactoring the code.

  • Encourage documentation and code reviews among team members to ensure a collective understanding of the code. 

  • Monitor the active effort to reduce debt and use a metric to measure the impact of reducing it. There are many ways to measure the impact, it can be measured with the bug count, code quality and performance. 

  • Spend time to analyze the root cause of the tech debt. 

  • Constantly reassess your strategy to reduce the tech debt by evaluating feedback. 

How to detect a growing code debt:

Detecting growing code debt involves observing various aspects of the software development process and codebase. Regularly assessing them and maintaining a keen awareness of the development process can help identify signs of growing code debt early. This enables teams to proactively address issues before they significantly impact the software's quality and maintainability. Here are a few tips to detect it:

  • Rise in the number of bugs.

  • Slowing pace of software development.

  • Developers fix issues using workarounds rather than finding the root cause of the problem. 

  • Level of code complexity and duplication.

  • Rise in request for rework.

How to Measure Technical Debt?

Measuring the codebase allows you to assess various aspects of the development process to better understand it and reduce tech debt. Here are a few tips on how to accomplish this:

  • Measure the code complexity using standard methods like cyclomatic or Halstead complexity.

  • Measure the repetitive code segments to measure code duplication.

  • Implement a special tool to establish the code debt index within the codebase.

  • Track the number of bugs per line of code.

  • The quality of the tests and overall coverage, as well as effectiveness, also helps with this process.

  • The time spent on the maintenance tasks is a good indication of the code debt.

  • Establish a few KPIs to measure the performance and, in turn, tech debt. One such KPI is to measure the number of new bugs vs the closed bugs.

How Scrum Masters Can Reduce Technical Debt

Scrum Masters play a crucial role in facilitating the Scrum framework and can contribute significantly to reducing technical debt within agile development teams. They do so by advocating a culture of quality, fostering collaboration, and integrating practices to address technical debt into the Scrum framework; Scrum Masters can play a pivotal role in supporting teams to reduce technical debt while delivering high-quality products iteratively.

How Scrum Masters Can Reduce Technical Debt.

Here's how they can help mitigate technical debt:

  • Educate Teams: Foster awareness within the team about the implications of technical debt. Educate team members on how it impacts product quality, productivity, and long-term development.

  • Promote Code Quality Standards: Encourage adherence to coding standards and best practices during development. Work with the team to establish and maintain coding guidelines that prevent the accumulation of technical debt.

  • Facilitate Refactoring: Advocate for time dedicated to refactoring during sprint planning. Help teams allocate time to address technical debt as part of regular development cycles.

  • Prioritize Technical Debt: Collaborate with product owners to prioritize technical debt items alongside feature development in the product backlog. Ensure that addressing technical debt receives appropriate attention and resources.

  • Support Cross-functional Collaboration: Facilitate collaboration between development, testing, and product management teams. Encourage open communication to identify technical debt issues and promote collective ownership of code quality.

  • Conduct Retrospectives: Include discussions about technical debt in sprint retrospectives. Encourage the team to reflect on areas where technical debt has impacted productivity and suggest strategies for improvement.

  • Guide Continuous Improvement: Facilitate continuous improvement by leveraging feedback loops. Help the team implement feedback mechanisms to identify and address technical debt iteratively.

  • Monitor and Track Technical Debt: Use tools or metrics to monitor technical debt over time. Collaborate with the team to establish metrics that quantify technical debt and track progress in reducing it.

  • Encourage Test Automation: Promote the use of automated tests to ensure code changes don't introduce new issues. Advocate for robust testing practices to prevent the accumulation of new technical debt.

  • Coach and Mentor: Provide guidance and coaching to team members on best practices for managing tech debt. Empower the team to take ownership of addressing and reducing technical debt.

  • Regular code reviews: Implement regular code reviews to identify issues in the code.  

  • Enhanced code reviews: Implement machine learning algorithms to automate the process of finding inconsistencies in the code and detecting issues before they become major bugs. 

  • Predictive analysis: Analyze your development strategy using well-established machine learning models to predict areas of potential tech debt. 

  • Incremental improvement: Instead of attempting to eliminate technical debt with several drastic measures, it is a good practice to implement incremental improvements. 

  • Collaborative culture: Encourage more interaction and discussions on the subject of technical debt like how to identify it and manage it.

Tips to Prevent Technical Debt

The popular saying "Prevention is better than cure" is highly relevant here. Since it pays to take the necessary steps to avoid tech debt rather than spend time and money having to deal with it. This can easily be achieved by having a system in place. The system can enforce good coding practices, using AI for analysis. It can also mean advising the team not to take shortcuts or develop a quick fix and also implement a good testing strategy. It is also important to discuss the issue of tech debt with the team and ensure they are fully aware of the implications of accumulating technical debt.

Hire Skilled Developers to Reduce Technical Debt

It will work in your favor to hire specialists to deal with tech debt. Skilled developers have a stronger understanding of good coding practices and the measures to take to prevent code debt. They have a knack for problem-solving and will always adhere to the best coding practices, irrespective of the situation. They will also have a dedicated QA team to test the code and ensure it is free from bugs or errors. 


It is necessary to take appropriate measures to deal with technical debt to enhance the code quality and improve productivity. Doing so also plays a big role in reducing the maintenance cost of the project and increases customer satisfaction. There can be drastic consequences of ignoring the issue of technical debit like even losing the client. Hence, removing technical debit is vital to maintain a healthy codebase.

Maximize your software's potential and reliability!

Hire seasoned professionals to eliminate technical debt and propel your product towards success. Our expert team specializes in identifying, prioritizing, and efficiently removing technical debt, ensuring a robust, maintainable, and high-quality codebase.


Mukesh Ram

Founder and CEO, Acquaint Softtech

I love to make a difference. Thus, I started Acquaint Softtech with the vision of making developers easily accessible and affordable to all. Me and my beloved team have been fulfilling this vision for over 15 years now and will continue to get even bigger and better.

Table of Content
  • Introduction

  • What is Technical Debt?

  • Importance of Reducing Technical Debt

  • Types of Technical Debt

  • What Is The Cause?

  • Consequences of Technical Debt

  • Tips To Manage Technical Debt

  • How to Measure Technical Debt?

  • How Scrum Masters Can Reduce Technical Debt

  • Tips to Prevent Technical Debt

  • Hire Skilled Developers to Reduce Technical Debt

  • Conclusion

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