Technical Debt: What is it and Why Does it Matter?

In software development, technical debt is a term used to describe the cost of maintaining and updating code over time. It refers to the short-cuts, compromises, and other trade-offs that are made in the development process in order to meet deadlines or to quickly deliver a product to market. While these shortcuts may seem like a good idea at the time, they can lead to problems down the road that can be time-consuming and expensive to fix.

What is Technical Debt?

Technical debt is often compared to financial debt. Just as financial debt allows us to buy something now and pay for it later, technical debt allows us to develop and launch a product quickly, but with the understanding that we will have to pay the cost of fixing it later.

Technical debt can arise from a variety of sources, including poor code quality, a lack of documentation, and the use of outdated technologies. It can also be caused by short-cuts that are taken in order to meet tight deadlines or to get a product to market quickly.

Why Does Technical Debt Matter?

Technical debt can have a major impact on the long-term success of a software development project. If not properly managed, it can lead to a number of problems, including:

  1. Increased maintenance costs: Technical debt increases the cost of maintaining and updating code over time. As the codebase grows, it becomes more complex and difficult to manage, which can result in longer lead times and higher costs for fixing bugs and adding new features.
  2. Decreased agility: Technical debt can also slow down the development process, making it difficult to quickly respond to changing business requirements or market conditions.
  3. Reduced quality: Technical debt can lead to code that is difficult to understand and maintain, which can result in increased bugs and decreased quality.
  4. Lost opportunity cost: Technical debt takes time and resources away from new development and innovation. This can result in lost opportunities for growth and can limit the ability to quickly respond to changing market conditions.

Managing Technical Debt

Managing technical debt is an ongoing process that requires a balance between delivering value to customers and ensuring that the codebase is maintainable and scalable over time. Here are a few strategies for managing technical debt:

  1. Regular code reviews: Regular code reviews can help identify areas of the codebase that are in need of improvement and can help prevent the accumulation of technical debt.
  2. Refactoring: Refactoring is the process of improving the design of existing code without changing its functionality. This can help reduce the cost of maintaining and updating the codebase over time.
  3. Invest in automation: Automating tasks such as testing and deployment can help reduce the cost of maintaining the codebase over time and can help prevent the accumulation of technical debt.
  4. Plan for technical debt: Technical debt is a natural part of the software development process, but it can be managed and reduced by including it in the project plan and allocating resources to address it.


Technical debt is a critical aspect of software development that can have a major impact on the long-term success of a project. By understanding what technical debt is, why it matters, and how it can be managed, software development teams can ensure that they are delivering high-quality, maintainable code that meets the needs of their customers.

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