DXC Technology, a Fortune 500 global technology services company, has unveiled a new study that exposes the potentially astronomical costs that technical debt, or “tech debt,” accrues for businesses around the world. Research surprisingly reveals that technical debt could cost organizations billions of dollars. This study offers a rare and timely look at a problem that until now has been largely difficult to quantify.
The survey included 750 IT executives from around the world. Unfortunately, the study reveals that almost half (46%) of business leaders worldwide believe that technology debt significantly reduces their ability to innovate and grow. Alarmingly, 99% of respondents recognize the risk that technology debt poses to their organization, but three in four still see it as a problem that IT management alone must solve. Additionally, 47% identified lack of knowledge as a significant barrier to modernizing their organization, while 38% identified cultural barriers as a stumbling block.
Dave Reid, research director at DXC Leading Edge, expressed concerns about tech debt, describing it as a major obstacle for many companies. Reid said: “Technical debt is a persistent topic at the intersection of business and technology, long known but often misunderstood…Organizations around the world cite it as a major challenge, inhibiting their ability to transform and to serve their customers around the world. future.”
Michael Corcoran, global head of analytics and engineering at DXC Technology, expressed the urgent need for a proactive, organization-wide strategy to address technology debt. He said: “We are at a moment where technological innovation is rapidly accelerating. The way we build, develop and enable our teams and customers is evolving, and with that, our approach to managing the modernization process must evolve as well. “
Corcoran also noted that if business leaders do not prioritize addressing technology debt, it risks leading to significant waste of resources, decreased productivity, loss of talent, and significant performance issues. security. He added: “Sometimes the spread of technology debt within the organization makes it difficult for leaders to step outside of their team’s perspective, and that’s where a neutral third party can provide a holistic view that allows leaders to consider a new perspective.
The study also found that businesses could potentially save up to 39% on costs by reducing technical debt and removing 37% of redundant applications. DXC Technology then developed a four-step plan designed to help companies not only deal with tech debt, but also prevent its accumulation in the future.
DXC Technology’s four-step plan covers reframing debt as part of the modernization process, defining opportunities, identifying and overcoming obstacles, and organizing execution. They argue that a coordinated effort between the business and technical aspects of an organization, led by the CIO and CTO with support from the CFO, is essential to effectively address technology debt.
