From tech debt to tech wellness

From tech debt to tech wellness

August 30, 2024

The term tech debt is often spoken about with a certain degree of uneasiness. For many IT leaders today, managing tech debt is a critical component of IT success. As a programme manager who specialises in IT lifecycle management and infrastructure modernisation, I see every day the impact that technical debt can quickly have on an organisation - both operationally and strategically. Knowing when and how to deal with legacy technology can be challenging.

In large enterprises, tech debt - accrued work that is 'owed' to an IT system - often accumulates from quick fixes to meet deadlines or even proof of concepts to progress projects. But these shortcuts can become a false economy, increasing system disorder and inevitably costing more-between 10-20% on top of the original project costs. While some tech debt is acceptable, letting it grow unchecked can hinder innovation, increase costs, and expose organisations to risks like inefficiencies, vulnerabilities, and cyber threats.

The Rising Challenge of Tech Debt

A common mistake is justifying the status quo with "if it ain't broke, don't fix it." This mindset often leads organisations to defer addressing legacy systems, focusing instead on immediate goals. But due to the rapid pace of technological change and the complexity of modern IT infrastructure, tech debt has now evolved from a manageable issue to a strategic challenge.

It's not uncommon in well-established global organisations, to find a patchwork of point-to-point solutions that have grown unwieldy over time, complicating IT environments. For example, during data centre migrations, it is not at all uncommon to face legacy servers running critical applications that are tied to multiple other systems, thereby creating challenges similar to a game of Tetris.

As an organisation you're carrying risk by not addressing such technical debt; the risk that you won't be getting the latest security patches, the risk that if you encounter an issue you won't have support, and the risk that you can't embrace innovation. As new infrastructure technologies emerge quickly, older systems become compatible.

The good news is that the expertise exists to run these migration programmes effectively. With hands-on experience from similar projects across global organisations, the challenges are often common and can be overcome with the right diligent and intrinsic approach. Starting with data gathering and knowledge building.

Minimising your tech debt - where to begin

The key to minimising tech debt lies in lifecycle management. Every application, system, and piece of hardware has a limited effective lifespan. Organisations need to plan for updates or replacements well in advance of end-of-life deadlines. A well-maintained configuration management database (CMDB) is essential, offering visibility into system dependencies and guiding rationalisation efforts. Understanding the interdependencies is crucial to ensure continuity when older applications are switched off. It also provides oversight that can reveal overlaps, where two applications are performing the same task.

For many of our clients at Saros, data centre consolidation is a pivotal step in reducing technical debt. Acknowledging and addressing the associated risks early on is crucial for success. We deploy a thorough approach incorporating detailed analysis on the applications involved and careful decision making on the treatment of legacy applications. Effective change management, including stakeholder collaboration, is a fundamental component in this stage.

When Tech Debt is Justifiable

In some cases, maintaining tech debt can provide stability and continuity, especially in mission-critical environments. Replacing reliable legacy systems could pose significant transition risks. Additionally, in regulated industries, maintaining existing systems may help avoid the costs and effort associated with certifying new solutions. The key is evaluating each situation to determine when it's better to preserve existing systems rather than replace them.

Managing tech debt leads to growth and gains

There is a significant payoff for the investment in analysing, organising and managing decisions on tech debt. Companies that do so experience 20% higher revenue growth than those in the bottom 20th percentile of tech debt reduction, according to McKinsey. Paying down that tech debt can free up an organisation's IT department and engineers to almost 50% more time working on projects that drive value. Of course, it also reduces costs significantly because less time is devoted to complex fixing issues. Uptime and resiliency are also improved; systems are more reliable, leading to better efficiencies and happier end users.

Effectively managing tech debt can lead to tech wellness - where IT infrastructure is robust, scalable, and ready to support future growth, and where organisations can ultimately achieve a more sustainable and efficient IT environment. At Saros, we have seen first-hand the results it can deliver. From data centres to end user computing, we've managed the delivery of large-scale international programmes designed to increase tech wellness and provide the engine for continual growth and productivity.

The one key takeaway? Prioritise and plan for continuous modernisation. Regularly assess the current state of your infrastructure, setting clear priorities for addressing technical debt, and implementing an ongoing strategy to update and optimise systems incrementally rather than waiting for a major overhaul. Having legacy tech isn't always an issue but not understanding it is.

Mary-Ellen Snook

Programme Manager, Saros Consulting

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