{"id":23321,"date":"2022-05-27T09:24:13","date_gmt":"2022-05-27T13:24:13","guid":{"rendered":"https:\/\/www.technewsday.com\/?p=23321"},"modified":"2022-05-31T11:58:19","modified_gmt":"2022-05-31T15:58:19","slug":"technical-debt-and-its-consequences-on-organizations","status":"publish","type":"post","link":"https:\/\/technewsday.com\/staging\/technical-debt-and-its-consequences-on-organizations\/","title":{"rendered":"Technical Debt And Its Consequences On Organizations"},"content":{"rendered":"<p id=\"arIndex_1\" data-ar-index=\"1\">78% of companies took on more technical debt last year, with more than half (56%) stating that they accepted the burden of technical debt because they were obliged to act.<\/p>\n<p id=\"arIndex_2\" data-ar-index=\"2\">Technical debt reflects the implicit cost of additional rework caused by choosing a simple, limited solution, rather than a better approach that would take longer. Simply put, it is the result of prioritizing fast delivery over perfect code.<\/p>\n<p id=\"arIndex_3\" data-ar-index=\"3\">The results of Software AG&#8217;s 2022 Situation report show that only 58% indicate a formal strategy for managing technical debt.<\/p>\n<p id=\"arIndex_4\" data-ar-index=\"4\">According to a report by OutSystems, companies spend more than a quarter (28%) of their IT budgets on dealing with technical debt, compared to about a third (33%) who channel resources into innovation and building new skills.<\/p>\n<p id=\"arIndex_5\" data-ar-index=\"5\">The problem is more complicated in large businesses, where about 40% of the IT budget is earmarked for technical debts. 69% of respondents state that the consequences of technical debt significantly limit the innovation capacity of companies. 60% of respondents state that technical debts ultimately affect performance.<\/p>\n<p id=\"arIndex_6\" data-ar-index=\"6\">The sources for this piece include an article in <a href=\"https:\/\/www.cio.com\/article\/100000901\/it-leaders-take-on-pandemic-tech-debt.html\" target=\"_blank\" rel=\"noopener\">CIO<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>78% of companies took on more technical debt last year, with more than half (56%) stating that they accepted the burden of technical debt because they were obliged to act. Technical debt reflects the implicit cost of additional rework caused by choosing a simple, limited solution, rather than a better approach that would take longer. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[57,349,15],"tags":[],"class_list":["post-23321","post","type-post","status-publish","format-standard","hentry","category-companies","category-development","category-leadership"],"acf":[],"_links":{"self":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/23321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/comments?post=23321"}],"version-history":[{"count":2,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/23321\/revisions"}],"predecessor-version":[{"id":23329,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/posts\/23321\/revisions\/23329"}],"wp:attachment":[{"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/media?parent=23321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/categories?post=23321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/technewsday.com\/staging\/wp-json\/wp\/v2\/tags?post=23321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}