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What is Technical Debt?

Ruben Buijs

Founder & Digital Consultant

Written on Aug 10, 2023

2 minutes

Product Management

Technical debt refers to the accumulated cost of choosing an expedient, short-term solution in software development instead of a more robust and maintainable one. It is a metaphorical concept that compares the consequences of taking shortcuts in software development to financial debt. Just as financial debt accumulates interest over time, technical debt accumulates additional work and complexity that must be addressed in the future.


Technical debt can manifest in various forms, such as:

  • Code duplication: When developers copy and paste existing code instead of creating reusable components, it leads to redundant code that is harder to maintain.
  • Lack of documentation: Insufficient documentation can hinder understanding and collaboration, making it challenging for new team members to contribute effectively.
  • Outdated dependencies: Failing to update libraries or frameworks regularly can result in security vulnerabilities and compatibility issues.
  • Inefficient algorithms: Choosing suboptimal algorithms or data structures can impact performance and scalability.


Understanding and managing technical debt is crucial for successful software product management. Failing to address technical debt can have the following implications:

  1. Increased development time: Technical debt makes the codebase more complex and harder to work with, slowing down development processes.
  2. Higher maintenance costs: As technical debt accumulates, it becomes increasingly difficult and time-consuming to maintain the software.
  3. Decreased software quality: Technical debt can lead to bugs, performance issues, and reduced user experience, affecting customer satisfaction.
  4. Limited innovation: When development teams spend most of their time dealing with technical debt, there is less capacity for innovation and new feature development.

How to Use Technical Debt

Identifying and managing technical debt is an ongoing process in software development. Here are some steps to effectively use technical debt:

  1. Recognize technical debt: Regularly assess the codebase, identify areas where shortcuts were taken, and acknowledge the potential consequences.
  2. Prioritize and plan: Evaluate the impact of technical debt on the product and prioritize areas that require immediate attention. Create a plan to address the debt gradually.
  3. Involve the team: Discuss technical debt with the development team and ensure everyone understands its implications. Encourage open communication and collaboration to tackle debt effectively.
  4. Document and track: Maintain a record of identified technical debt and track progress in addressing it. Use project management tools to assign tasks and monitor their resolution.
  5. Prevent future debt: Encourage good development practices, such as code reviews, automated testing, and documentation, to minimize the accumulation of technical debt in the future.

Useful Tips

Consider the following tips when managing technical debt:

  • Regular refactoring: Dedicate time to refactor and improve the codebase to reduce technical debt gradually.
  • Automated testing: Adopt automated testing practices to catch issues early and prevent the accumulation of further technical debt.
  • Continuous integration: Utilize continuous integration tools to ensure that changes to the codebase do not introduce new technical debt.
  • Collaborative decision-making: Involve the development team in decisions related to technical debt to foster shared responsibility and buy-in.
  • Communication with stakeholders: Clearly communicate the impact of technical debt to stakeholders, such as product managers and executives, to gain support and resources for addressing it.
  • Legacy code
  • Code smell
  • Refactoring
  • Agile development
  • Technical backlog
  • Quality assurance
  • Regression testing
  • Continuous delivery
  • DevOps
  • Technical bankruptcy


Technical debt refers to the accumulated software development work that needs to be done in the future due to taking shortcuts or making compromises during the software development process.
Managing technical debt is important because if left unaddressed, it can slow down development, increase maintenance costs, and hinder innovation.
Technical debt can impact software development teams by reducing their productivity, increasing the time required for bug fixing and feature development, and making the codebase more complex and difficult to maintain.
Common causes of technical debt include tight deadlines, lack of proper planning, insufficient documentation, poor code quality, and the use of outdated or inefficient technologies.
Technical debt can be managed by regularly refactoring code, allocating time for debt repayment, prioritizing technical debt issues, improving documentation, and following best practices and coding standards.
Ignoring technical debt can lead to decreased software quality, increased number of bugs and issues, reduced customer satisfaction, longer development cycles, and higher long-term maintenance costs.
Completely eliminating technical debt is nearly impossible, as it is a natural part of the software development process. However, it can be minimized and managed effectively through proactive measures.
Technical debt can be prioritized by considering its impact on the overall system, its potential to cause future issues, the effort required for repayment, and the urgency of addressing it.
Some best practices for preventing technical debt include conducting code reviews, writing clean and maintainable code, continuously testing and refactoring, adopting scalable and modular architectures, and promoting a culture of quality and technical excellence.
In some cases, taking on technical debt intentionally and strategically may provide short-term benefits, such as meeting tight deadlines or quickly delivering new features. However, it should be managed carefully to avoid long-term negative consequences.

Article by

Ruben Buijs

Ruben is the founder of ProductLift. I employ a decade of consulting experience from Ernst & Young to maximize clients' ROI on new Tech developments. I now help companies build better products

Table of contents

  1. Examples
  2. Importance
  3. How to Use Technical Debt
  4. Useful Tips
  5. Related Terms

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