What is technical debt?

Understand the impact of technical debt on software development. Learn how to manage and mitigate technical debt for long-term code quality and maintainability.

If you've ever incurred financial debt, you likely did it to get something sooner than you would have if you'd waited until you could pay in full, even though it cost you more in the long term. Technical debt (also called "tech debt") works in a similar way. In software development, technical debt refers to future consequences that result from prioritizing speed of delivery over achieving an optimal solution. Choices made to achieve a short-term goal accrue a "debt" that will need to be repaid later in the form of additional work and long-term costs associated with maintaining and evolving the software.

If technical debt isn't addressed, it can accumulate over time and hinder a team's ability to deliver new features, fix bugs, and respond to changing requirements efficiently. And like financial debt, technical debt comes with interest—the longer it persists, the more costly it becomes.

Defining technical debt: intentional vs. accidental

One important aspect of understanding technical debt is recognizing that it can be intentional, accidental, or both. When it's intentional, development teams take on technical debt as a strategic choice to meet tight deadlines or deliver a product more quickly to gain a competitive advantage. The expectation is that the debt will be addressed and repaid.

With accidental technical debt, unforeseen challenges or lack of knowledge may be responsible. For example, developers can inadvertently introduce technical debt while trying to quickly navigate changing requirements or unexpected technical constraints, or because they don't understand the full scope of the problem they're trying to address.

In practice, software projects often incur a combination of intentional and accidental technical debt. It's important for development teams and stakeholders to be aware of the trade-offs involved in accumulating technical debt and to have a plan for managing and repaying it over time. Proactive management of technical debt is crucial to maintaining the long-term health and sustainability of a software system.

Importance of technical debt in software development

Stakeholders and development teams may decide to intentionally take on technical debt for strategic reasons, including:

  • Rapid delivery and time to market: Intentionally taking on technical debt may be a strategic decision to meet deadlines and gain a competitive advantage by getting a product to market quickly.

  • Flexibility and adaptability: By making pragmatic decisions and accepting some level of debt, teams can quickly iterate on features and respond to user feedback, adapting to evolving requirements and market demands.

  • Learning and prototyping: In the early stages of a project, when requirements are still evolving and there's a need for experimentation, technical debt may be incurred as a byproduct of learning and prototyping. Once the requirements are better understood, the debt can be repaid through refactoring and optimization.

  • Risk management: Technical debt can be a way of managing risks associated with uncertainties in project requirements. By deferring certain decisions or taking shortcuts initially, teams can gather more information and make better-informed decisions later, reducing the risk of investing heavily in the wrong direction.

  • Team dynamics and collaborative software development: Acknowledging and managing technical debt encourages open communication within development teams and between developers and stakeholders. It fosters a culture of transparency about the trade-offs made during the development process and helps in making informed decisions collectively.

Types of technical debt

Technical debt has been characterized in multiple ways over time. Some approaches focus on the intent and consequences, while others address the specific nature of the debt. One useful way to categorize the different types of technical debt is based on how they fit into the software development lifecycle (SDLC). These types include:

  • Architecture debt

  • Build debt

  • Code debt

  • Defect debt

  • Design debt

  • Documentation debt

  • Infrastructure debt

  • People debt

  • Process debt

  • Requirement debt

  • Service debt

  • Test automation debt

  • Test debt

For each type, compromises or shortcuts made in that aspect of the SDLC result in issues that may impact the long-term maintainability, scalability, and reliability of the software if the debt is not repaid.

Causes of technical debt

A wide range of factors and circumstances can result in technical debt throughout the software development process. Some common examples of these issues include:

  • Time and resource constraints: Development teams facing pressure to deliver a product or fix a bug quickly may take shortcuts to meet tight deadlines or market demands.

  • Incomplete requirements: When the full scope of a project is not well-defined or changes frequently, developers may make decisions that need to be revisited and refined as the requirements become clearer.

  • Lack of experience or knowledge: Developers may inadvertently introduce technical debt due to a lack of understanding of best practices, design patterns, or the long-term consequences of certain decisions.

  • Legacy code and systems: Integrating new features or making changes in a legacy environment with outdated technologies and architectures may result in shortcuts or compromises.

  • Insufficient testing: Inadequate testing practices, such as the lack of automated tests or insufficient test coverage, can make it difficult to identify and address issues early in the development process.

  • Lack of documentation: Poor documentation can make it difficult for developers to understand and maintain or update the code.

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Examples of technical debt impact on development projects

In the short term, technical debt can provide a boost in speed and flexibility that helps an organization achieve its goals. However, technical debt that is not addressed proactively can have severe consequences for the long-term success of the project. Some of these consequences include:

  • Decreased code quality: Code with design flaws, inadequate testing, or insufficient documentation is more prone to errors and may not meet the desired standards for reliability, performance, and security. Poorly designed or hastily implemented code may lead to a higher incidence of bugs and defects.

  • Increased maintenance costs: Over time, the codebase becomes more difficult and expensive to maintain. Developers need to allocate more time and effort to address issues, refactor code, and implement changes.

  • Compromised security: Outdated dependencies, insufficient testing, and poorly designed security features can create vulnerabilities, exposing the system to potential security breaches.

  • Difficulty in attracting and retaining talent: The perception of a challenging and error-prone codebase may deter potential hires. For existing team members, working with challenging code may lead to frustration, burnout, and higher turnover.

  • Longer time to market: Code that is more difficult to understand, modify, and extend takes more time to navigate. Developers spend more time on refactoring instead of focusing on innovation, extending the time to market for new features and releases.

Identifying and measuring technical debt

Taking steps to proactively identify and measure technical debt is essential to understanding its potential impact on the project and the organization. Some key indicators of technical debt include:

  • Code reviews: Perform regular code reviews to identify code smells, duplication, and other signs of poor code quality.

  • Static code analysis: Use automated tools to analyze code statically to identify potential errors and vulnerabilities.

  • Testing metrics: Analyze testing metrics for indicators of incomplete or inadequate testing, such as low code coverage or a high number of defects.

  • Documentation assessment: Evaluate the completeness and accuracy of documentation to identify deficiencies.

  • Deployment and infrastructure audits: Review deployment processes and infrastructure components for inefficiencies or outdated elements.

  • Dependency analysis: Check for outdated third-party libraries or frameworks.

  • Team feedback: Solicit feedback from development teams regarding challenges, frustrations, and perceived technical debt.

10 best practices to mitigate technical debt

Effectively mitigating technical debt involves a combination of proactive strategies and ongoing efforts. Here are 10 best practices you can implement to manage and reduce technical debt:

  1. Prioritizing refactoring: Regularly allocate time for refactoring to improve code quality and address design debt.

  2. Automated testing: Implement robust automated testing practices to ensure comprehensive test coverage and identify defects early.

  3. Continuous integration and deployment (CI/CD): Adopt CI/CD practices to streamline development and deployment processes.

  4. Documentation updates: Maintain up-to-date and comprehensive documentation to facilitate knowledge transfer and reduce documentation debt.

  5. Training and skill development: Invest in the training and skill development of team members to address people and knowledge debt.

  6. Agile and iterative development: Embrace agile methodologies to adapt to changing requirements and reduce the risk of accumulating technical debt. Using more rigid approaches like waterfall development increases the likelihood of incurring technical debt.

  7. Technical debt backlog: Maintain a technical debt backlog to track and prioritize debt mitigation tasks.

  8. Collaborative decision-making: Foster collaboration and open communication within the development team and between developers and stakeholders to make informed decisions collectively.

  9. Security audits: Conduct regular security audits to identify and address potential vulnerabilities, reducing security-related technical debt.

  10. Regular reflection and retrospectives: Periodically reflect on development practices and project outcomes through retrospectives, identifying areas for improvement and debt reduction.


Technical debt is an inevitable aspect of software development, presenting both opportunities and challenges. While intentional technical debt can be a useful tool to achieve short-term gains, unmanaged and excessive technical debt can lead to damaging long-term consequences. It's important for development teams and organizations to strike a balance between rapid innovation and maintaining a sustainable, adaptable, and high-quality codebase. By understanding the types, causes, and impacts of technical debt, and by adopting best practices for mitigation, you can navigate the complex landscape of software development more effectively, ensuring the success and longevity of your projects.

Frequently asked questions

What is meant by tech debt?

Tech debt, or technical debt, is a concept in software development that refers to the consequences of prioritizing speed of delivery over achieving optimal coding solutions. Like financial debt, tech debt incurs a cost, such as increased complexity and reduced software quality, that must repaid to avoid long-term negative outcomes. Tech debt can be used intentionally as a strategic tool to achieve short-term goals, or it can be introduced accidentally.

What's technical debt in scrum?

Technical debt in scrum refers to compromises made during development to meet sprint goals, sacrificing long-term code quality. It includes shortcuts, deferred refactoring, and incomplete testing that can impede team productivity and increase the risk of defects. Addressing technical debt is essential to maintaining a sustainable pace of development and fostering a codebase that is resilient, easily maintainable, and adaptable to evolving project needs within the scrum framework.

Why is technical debt bad?

Technical debt reduces code quality, slows development, and increases the risk of errors. It impedes adaptability and requires additional effort to rectify, hindering long-term project success. However, technical debt can be beneficial when used strategically to achieve short-term goals. The key to mitigating the impact of technical debt is to address it proactively.

Who pays for technical debt?

The development team and the organization pay the cost of technical debt in the form of increased maintenance efforts, longer development cycles, and a higher likelihood of defects. It can reduce the team's productivity and lead to increased expenses in addressing issues that arise due to compromised code quality.

What are the different types of tech debt?

There are multiple ways to characterize tech debt. One way is to categorize the different types by how they affect different aspects of the software development process, including: architecture debt, build debt, code debt, defect debt, design debt, documentation debt, infrastructure debt, people debt, process debt, requirement debt, service debt, test automation debt, and test debt.

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