Understanding Technical Debt: A Deep Dive into Its Meaning, Causes, and Solutions

Understanding technical debt

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In the world of software development and IT management, technical debt is what one hears often. No matter whether it is the software developer, project manager, or CTO, to ensure the successful long-term future of the organization, knowledge of technical debt is a must. In this all-inclusive guide, we are going to cover the meaning, definition, and impact of technical debt, along with insights into how you can handle it effectively.

Let’s get started!

Technical Debt Pronunciation

Technical debt is pronounced as “tek-ni-kuhl det.” 

Understand Technical Debt

Like financial debt, technical debt accumulates over time. Interest is paid on that debt; it slows down the process of development and stops everything in its tracks. That is a concept wherein one should think of it as a trade-off. This is cutting corners or skipping certain processes to get the product as soon as possible, but then causes a problem later when scaling, updating, or maintaining the product.

It was in the 1990s when one of the founders of the Agile Manifesto, Ward Cunningham, coined a term for just that: technical debt describes precisely the phenomenon of borrowing resources in the present and promising to pay them back later, this time with interests.

Technical Debt Definition

It may be pretty broad in its definition, but at the very core of technical debt are the following:

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Short-Term Decisions: In order to meet the deadlines, a developer would usually make hasty decisions or take some shortcuts in the coding processes to ensure faster delivery of the features, faster than otherwise if the best practices have been followed.

Compromised Code Quality: It may include bypassing code reviews, using outdated libraries, or abandoning technical standards and producing messy, hard-to-maintain code.

Future Costs: The “debt” surfaces when such shortcuts come back to bite the project later, perhaps during debugging or testing stages or even during the upscaling of the product. Finally, the interest makes innovation or quick delivery of new features difficult to implement.

Technical debt can range from tiny inefficiencies in code to major architectural flaws. When allowed to grow over time, it tends to snowball into reduced productivity, increased maintenance costs, and sometimes even failure of the product.

Technical Debt Meaning

Technical debt best can be described in the context of a software project. The very idea of cutting corners appears attractive, especially when meeting a deadline or implementing urgent features under high pressure. What began as a small debt will easily balloon into a significant bottleneck as the product matures.

Some of the examples of technical debt include

  •  Hardcoded values: Those codes have static values where configurable variables should have been used. It will become hard for future changes.
  •  Lack of documentation: If the developers bypass documentation on the code or architecture, it would be difficult for other developers in the future to understand or even maintain the system. 
  • Spaghetti code: Code that becomes a tangle, where it’s really hard to follow.
  • Outdated frameworks or libraries: Using out-of-date tools that are no longer supported or efficient. Thus, the team ends up wasting time trying to correct things that would have otherwise been avoided with newer technologies.
  • Lack of unit and end-to-end tests: The team fails to execute the unit tests or end-to-end tests, thus the bugs that are hidden can become more expensive to repair over time.

All these short-term helps create the “debt” that comes due with interest as the project matures.

Types of Technical Debt

Technical debt can be classified under various types, based on causes and consequences:

1. Intentional Technical Debt

Definition: This type of technical debt involves the conscious decision to ship a feature quickly, thereby implying that it will eventually have to be improved upon.

Example: Shipping a Minimum Viable Product without optimized code to get quick feedback from users.

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2. Inadvertent Technical Debt

Definition: This form of technical debt occurs when the team unknowingly incurs debt due to ignorance, poor planning, or oversight.

Example: A junior developer writes a bad algorithm, not understanding the effect it will have down the road.

3. Bit Rot

Definition: The quality of code degrades over time as a system evolves and more features are included, making it increasingly difficult to maintain.

Example: A software library becomes obsolete, and replacing it is impossible due to dependencies.

4. Code Quality Debt

Definition: Result of writing messy or hard-to-read code that may work correctly but is hard to understand modify or extend.

Example: Code written by any person, anytime with no respect to the use of naming convention will make it prone to many errors in changing the code.

5. Environmental Debt

Definition: Where the development environment becomes old or inconsistent.

Example: Using an old database system that does not support newer ways of optimization.

How Technical Debt Affects the Software Development?

1. Reduced Rate of Inventing

Technical debt most heavily costs speeding up development. Over time, teams increasingly take more time to invest in working their way out of problems that have made their way into the codebase, rather than innovating and delivering new features. Continually patching the same problem leads to making it a very long time before there are new product cycles that could be released, tested much more, and bug a lot in the cycle.

2. Increased Maintenance Price

Accrued technical debt tends to make it harder to support the code. The longer developers have to spend to identify and fix bugs instead of delivering new features and optimizations might become a source of escalating general maintenance costs and resource consumption.

3. Product Quality

The more technical debt, the higher the chance of errors and bugs in the software. In addition, low-quality code in the system can cause new problems to the system while trying to remove the old ones. A product that does not suit the expectations of the customer or the set industry standards is developed.

4. It cannot scale appropriately

Scaling a system that has major technical debt is a very painful and expensive process. The more complex and messy the codebase, the harder it becomes to scale. Teams have to expend extra resources to re-engineer parts of the system in order to make it scalable; this could have been avoided had technical debt been managed earlier.

5. Innovation Bottleneck

With less time or ability to innovate, the ongoing mitigation of technical debt effects in developers can strangle creativity and make it challenging for the organization to compete with competitors or respond suitably to changes in the market.

What is Technical Debt in Scrum?

Technical debt has an enormous influence on the efficacy and effectiveness of a Scrum team:

Sprint Planning: Technical debt shortens the number of features that can be committed by a team in the sprint. This is so because a portion of that effort must be dedicated toward refactoring or paying for previously acquired debt.

Impact on Velocity: The more extensive the level of debt is, the slower a team becomes and its future sprints.

Debt Backlog: Technical debt items may be part of a separate backlog for teams working with Scrum, prioritized with regular features and improvements.

Example

A Scrum team is racing to complete a feature without proper testing so as to meet the sprint deadline. In the following sprint, they find numerous bugs that take a great deal of effort to resolve, hence delaying new feature development.

What is Technical Debt in Product Management?

This will directly impact the product management perspective because it will reflect on the overall roadmap and strategy of the product being discussed:

Resource Allocation: A proper balancing of time and budget is required to create new features and address existing debt.

Long-term Costs: Avoidance of technical debt increases the cost of maintenance and lost revenue due to performance-related issues or system failure.

Impact on User Experience: Bugs or performance lags are likely to be reflected to users, which can affect satisfaction and increase churn rates.

Example

A product manager working for a SaaS company needs to consider what advantages the new feature would be launched with versus the risks brought along by an unstable system on account of unresolved technical debt.

Technical Debt in Agile

Agile methodologies encourage continuous improvement and change; thus, technical debt management is a prime concern:

Continuous Refactoring: Agile teams refactor code to keep it clean and efficient and address the debt incrementally.

Prioritization: The debt is treated as part of the normal development process; teams are encouraged to prioritize accordingly based on its impact.

Feedback Loops: The iterative nature of Agile ensures that user feedback is acquired quickly, but this also means debt needs to be addressed frequently in order not to slow down future iterations.

Example

In an Agile project, the team assigns a percentage of each sprint to refactoring or reduction of technical debt so that new development and maintenance do not compete.

Technical Debt in Software Development

In software development, technical debt severely hampers productivity and software performance:

Code Smell: Bad practices in codes, such as large classes or methods, make software tough to extend and maintain.

Dependency Management: Outdated libraries or frameworks can increase vulnerability risks and limit the update efficiency of the team about the software.

Developer Morale: High technical debt can frustrate developers who may spend more time rectifying issues than creating features.

Example

A software company fails to refactor a critical subsystem. When a security vulnerability is discovered, the system’s complexity makes the fix time-consuming and costly.

What Causes Technical Debt?

There are several reasons why technical debt occurs. Knowing them will help the organizations prevent it or minimize it at least from the very beginning. Here are the most common causes:

1. Time Pressure

There will be a tendency to compromise the quality of code being written, cut corners, and skip important testing and documentation due to rushed deadlines and pressure to deliver features quickly. It may lead to quicker results in the short term, but the long-term consequence is usually detrimental.

2 No Proper Planning

There will be the case of lowly planned and undefined scope definition during a project. If an application has not been completely thought about in terms of design and architecture, many decisions become easy in the short run but turn bad when the project is highly progressed.

3. Changing Requirements

As the needs of a project’s lifecycle change, especially when using agile methods, developers are often forced to introduce existing code with modifications or add functionality not fit well into the original design. Such changes often bring inefficiencies and become technical debt.

4. Bad Communication

When stakeholders, developers, and other team members are not in a position to communicate among themselves, decisions can result in technical debt. For instance, developers will push for solutions that satisfy them in the moment but in reality do not fit into a broader architectural vision or maybe future requirements of the system.

Sometimes, it simply is because a development team lacks experience or the right skills. Junior developers may make decisions that can be technically possible but don’t necessarily make sense as a long-term choice.

How to Manage and Pay Off Technical Debt

1. Identify and Prioritize Technical Debt

Identification is what debt management entails. Identification can be obtained through code reviews, performance audits, and even through code-quality analysis tools that aid in determining the cleanliness or dirtiness of one’s code.

2. Tie the Debt Repayment Cycle with the Development Cycle

Instead of considering technical debt as a one-time thing, wrap it into the development cycle. Fix aside a portion of time or resources from the development time allocated to pay off debt through refactoring, updating libraries, or improving documentation.

3. Refactoring and Improving Code Quality

A key technique for reducing the amount of technical debt created is regular refactoring of code. This is a clean-up of inelegant inefficient code; it makes them readable and, in so doing, often optimizes their algorithms. Developers should go ahead and follow good coding standards in order not to make any new debt.

4. Use Continuous Integration with Automated Testing

Integrate CI and automated testing into your flow to catch issues early on in the development process. This avoids a long-term accumulation of debt created by poor testing practices and thus maintains the sustainability of the project at large.

5. Improve Communication and Collaboration

Ensure proper communication among all stakeholders. The architecture and design of the project should always be reviewed so that it remains well aligned with future goals, and any change made because of shifting requirements does not contribute to unnecessary debt.

6. Track and Measure Progress

Technical debt is tracked by metrics as well as constant review. This is how one follows up on the progress and ensures that the debt is managed just like that. Useful data on code quality, where the debt is accumulating can be received from tools such as SonarQube, CodeClimate, or GitHub Insights.

Technical Debt vs. Technology Debt

While the terms are often used with interchangeable meanings, they both have a different meaning:

Technical Debt: The shorthand in code and software design is something that needs to be paid later.

Technology Debt: Old infrastructure, systems, or hardware that cannot scale and may even prevent future upgrades of the application.

Example

  • Technical Debt: Code is not written in the right way. 
  • Technology Debt: Using a ten-year-old server that cannot run with modern software applications.

How to Avoid Technical Debt

Implement Code Reviews: Ensure peer reviews are done on the code to maintain quality and catch problems early.

Practice Agile: Integrate refactoring as part of the process to have clean and efficient code.

Automate Testing: Continuous integration and automated tests help catch problems early, and thus the future debt is less.

Invest in Developer Training: Regular training sessions should be made available to keep your team updated with best practices.

Allocate specific sprints or blocks of time to repaying technical debt.

Follow documented and enforced coding standards to make code both readable and maintainable.

How to Measure Technical Debt

Debt Ratio: the ratio of time necessary to fix debt versus that required to build the software. The higher the debt ratio, the more technically debt-ridden a system is.

Code Complexity: To measure the complexity, make use of tools such as SonarQube.

Defect Rates: It is an indicators in those areas of the code in which a high count of bugs are found-technical debt and poor code quality.

Performance Benchmarks: Measure system performance and note when changes occur as new functionality is added.

Team Velocity: If velocity is trending downward, technical debt may be contributing to lost productivity.

Example

A project manager can use Cyclomatic Complexity as a metric to identify parts of the code that are too complex and need to be refactored.

Use Cases

Startup Case

A new service by the startup company is quickly delivered to increase a share in the market though this accrues high amounts of technical debt. There is, after a long time due to these, scalability problems the team can no longer enhance any more new features only refactoring.

E-commerce Platform

 An e-commerce web platform utilizing an outdated payment processing system is described here. Then when the system needs an upgraded regulation supposed to be added, it will struggle with getting it at a cost extra higher than had it gone ahead to actually do it earlier.

Defect Rates vs. Technical Debt: Graphical Representation

The number of defects plotted against time depicts how defect rates go up as the technical debt is accumulated. This might graphically illustrate a reason for controlling debt at an early stage.

Defect Rates vs Technical Debt Graph

Graph Explanation

This Debt Ratio Graph shows the change in this debt ratio over time. The debt ratio initially increases to reflect growing technical debt but then decreases when refactoring or debt reduction measures are taken.

Impact of Technical Debt on Team Velocity Graph

As seen in the graph of the Impact of Technical Debt on Team Velocity, velocity diminishes with the accumulation of technical debt and reduces the capacity of the team to produce new features. When attempts are made to pay down the debt, velocity increases.

Impact of Technical debt on team velocity graph

Role of CyberPanel in Technical Debt Management in Server Environments

CyberPanel

CyberPanel, an open-source web hosting control panel can help significantly in the mitigation and management of technical debt in server environments:

Automated Backups: This will automatically simplify recovery, hence protecting against data loss and reducing the risks associated with outdated configurations.

Optimized Resource Management: This reduces the issue of server maintenance and allows for smoother updates with minimal chances of debt.

Ease of Use: The features in CyberPanel are user-friendly. This lowers the learning curve and prevents knowledge-based debt.

Increased Security: Updates as well as security features would limit the vulnerabilities that technically contribute to technical debt.

Monitoring and Analytics: Helps have insights into the performance of servers that will aid the decisions of the teams hence stopping the environmental debt.

Frequently Asked Questions

1. Define Technical debt in software.

Technical debt in software development means the implied cost of additional work caused by choosing a less optimal or quicker solution rather than a better approach in the long run.

2. How does technical debt impact a project?

Technical debt slows down development, increases maintenance costs, reduces team efficiency, and makes the software more error-prone with time.

3. Which measures are common to calculate technical debt?

Debt ratio, cyclomatic complexity, defect rates, and negative impacts on team velocity or delivery timelines are very common metrics.

4. How could technical debt be avoided/minimized?

 Practices like doing regular code reviews, refactorings, automated testing of any program, and involving stakeholders in a better understanding and prioritizing technical debt.

Final Remarks

Technical debt is something that every software development team needs to face. Though technical debt might provide short-term benefits, such as speed to market, the long-term implications can be disastrous if it is not well managed. Proactive technical debt management by strategies like regular refactoring, effective code reviews, and powerful tools like CyberPanel can minimize these problems. High-quality code with stakeholders’ collaboration helps teams minimize debt, streamline processes, and keep software at its optimal performance.

Keep your codebase clean and future-proof today! Invest in proactive measures and the right tools to secure long-term success for your project.

Hasib Iftikhar
I'm Hasib Iftikhar, a dedicated technical writer at CyberPanel, joining the team in July 2024. With three years of extensive experience in content writing, I specialize in copywriting, article writing, guest posting, affiliate content writing, and SEO. My expertise ensures that each piece of content I create is engaging, informative, and optimized for search engines, helping businesses enhance their online presence and reach their target audience effectively.
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