Wednesday, October 4, 2023

Businesses Must Stop Spending on Bad Technology to Reduce Tech Debt

By Prangya Pandab - September 12, 2022 3 Mins Read


As the digital transformation continues, Chief Information Officers (CIOs) must evaluate their tech stack to avoid further debt and the potential increase in attrition costs

Although the time for digital transformation has passed, some businesses are still behind. A successful transformation requires the right resources, including funding and skills.

With businesses continuing to lose money trying to maintain broken systems, IT leaders must consider preparing their companies for an inevitable economic slowdown while facing enormous tech debt and a lack of the right talent to get them out of it.

Don’t Skimp on Quality

Companies take shortcuts by reusing legacy software and bad code rather than addressing the root of the issue and upgrading the technology. Even though they appear to be losing money while temporarily saving a few dollars, they actually continue to do so year after year.

The price of bad code is high; instead of creating or purchasing new software, IT departments spend billions a year recovering bad technology. While it’s easy to blame poor decisions and financial constraints for everything, a significant lack of the necessary talent just makes matters worse.

Also Read: Why Businesses Are Still in The ‘AI Adolescence’ Phase

Hire the Right Talent

Although everyone is tired of the impact of the Great Resignation, many tech organizations and IT departments were left in a bind. While skills shortage is a global issue while solving tech debt, a scarcity of engineers and software developers for hire has left those with jobs being mishandled and left to handle projects that focus on keeping toxic legacy systems in place. If properly deployed, this specialized skill pool might actually boost the global Gross Domestic Product (GDP) by billions over the coming years.

A severe skill shortage is currently in effect for several reasons, including limited access to training and burnout among experienced professionals. The US will have a shortage of over 1.2 million software engineers by 2026, according to the Bureau of Labor Statistics, an alarming prediction for an industry that is already in debt of around billions.

Also Read: Three Approaches for Recruiting and Retaining Gen Z Talent

Assess the Technology Stack

Although it may seem daunting to spend more after having already spent so much money in vain, learning when to let go can ultimately result in significant financial savings. Not all business software solutions are created equal, even while the more well-known ones have a hefty price tag and a team of advisors to help. Businesses must compare options because there are solutions they need – they must examine what they now have, what they use, and what features they don’t use. This can not only save money on the software up front but purchasing an easy-to-try and use solution can also reduce attrition.

Strategizing for the Future

Future planning is essential, and including software engineers and developers at the strategic planning table is a must. Involving front-line employees will ensure that companies have the proper product roadmap, the right resources, and the right technology for the long term. A future-oriented strategy will not only help reduce future tech debt but may also prevent organizations from losing employees.

The time has come for IT departments to provide employees with what they require to boost productivity and pay off tech debt. This includes providing the right tools, the right team, and autonomy.

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Prangya Pandab

Prangya Pandab is an Associate Editor with OnDot Media. She is a seasoned journalist with almost seven years of experience in the business news sector. Before joining ODM, she was a journalist with CNBC-TV18 for four years. She also had a brief stint with an infrastructure finance company working for their communications and branding vertical.

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