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Navigating the Tech Debt Terrain: A Guide for Software Development Organizations

Laura Jennings
April 5, 2024
5 min read

Technical debt, a term coined by software engineer Ward Cunningham, is a metaphor that equates software development to financial debt. Just as financial debt accumulates interest over time if not paid off, so does technical debt—in the form of additional work and cost.

Before we dive in, you might be asking yourself, what does that really mean? Great question, and I am glad you asked. Technical debt, often referred to as “tech debt”, is a concept in software development that reflects the implied cost of additional rework caused by choosing an easy or quick solution now instead of using a better approach that would take longer.

Prioritizing and managing technical debt is crucial for organizations for several key reasons. Here are five that I find extremely valuable to keep in mind:

  1. Maintainability: High tech debt makes a codebase difficult to understand, change, and maintain. This can slow down new feature development and increase the likelihood of bugs.
  2. Product Quality: Over time, high tech debt can impact the quality of the product, leading to poor user experience and loss of customers.
  3. Team Morale: Constantly working on a codebase with high tech debt can be frustrating and demoralizing for development teams, leading to lower productivity and higher turnover.
  4. Cost Efficiency: Although taking on tech debt might seem cost-effective in the short term, it can lead to higher costs in the long term due to the increased effort required to implement changes and fix issues.
  5. Scalability: A system with high tech debt might not scale well when the user base or feature set grows, leading to performance issues.

Therefore, it’s important for organizations to have a strategy to manage tech debt. This could include practices like regular refactoring, code reviews, automated testing, and allocating a certain amount of development time to addressing tech debt. By doing so, organizations can ensure a healthy, maintainable codebase, a high-quality product, and a happy, productive development team.

 

The Cost of Technical Debt

Technical debt can be a silent killer in software development. It starts small—a shortcut here, a workaround there—but over time, these “quick fixes” can pile up, making the codebase difficult to maintain and slowing down the development process.

 

According to the 2020 CRASH Report published by software intelligence company CAST, the average technical debt per line of code for an application is approximately $3.61. For a medium-sized application of 300,000 lines of code, that’s over a million dollars in technical debt! Crazy, right? In essence, technical debt is simply an inevitable part of software development. However, with conscious effort and strategic planning, it can be effectively managed.

By recognizing the impact of technical debt and implementing Agile/Scrum practices to manage it, software development organizations can maintain a healthy codebase, accelerate product development, and deliver higher quality products.

 

Agile/Scrum Practices to Manage Technical Debt

Agile and Scrum practices provide a framework for managing technical debt effectively. Here are some strategies:

  • Regular Refactoring: Refactoring is the process of improving the internal structure of the code without changing its external behavior. Regular refactoring helps keep the codebase clean and manageable.
  • Definition of Done (DoD): Include addressing technical debt in the DoD. This ensures that it is considered part of the regular work and not something to be postponed indefinitely.
  • Sprint Planning: Allocate a certain percentage of each sprint to address technical debt. This ensures that it is regularly paid down.
  • Backlog Prioritization: Technical debt items should be part of the product backlog and prioritized alongside new features and bug fixes.
  • Test Automation: Automated tests help catch regression errors introduced during refactoring or other changes, helping to maintain code quality.

Remember, the goal isn’t to eliminate technical debt entirely—that’s neither possible nor desirable. The goal is to manage it effectively so that your organization can continue to innovate and deliver value to customers without being bogged down by the past.

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