A new study has revealed that choosing “inferior but quick” solutions over the “right” solution is costing businesses more than just cash as they risk “technical debt.”
The report from DXC Technology explains that businesses can find themselves in tech debt after a series of trade-offs and poor decisions, which in turn lead to suboptimization that can be hard to undo.
The global survey of 750 C-suite IT execs found that almost half (46%) considered tech debt to be inhibiting their ability to innovate and grow.
Bad tech choices are preventing business growth
The report comes at an important time for the industry, as companies face tough decisions about their service providers amid rising costs. Other recent studies have also found that businesses could be spending too much on the wrong solutions.
According to the analysis, more than one-third (37%) were able to retire redundant applications after addressing their tech debt, helping them to make considerable financial savings in the process. A further 39% noted their cost savings.
The key to addressing the issue, says DXC, is reframing the obstacle. Companies should see it as an opportunity to modernize their services and solutions, which has never been more prevalent in a landscape of new and emerging AI technologies.
Michael Corcoran, Global Lead for Analytics & Engineering at DXC Technology, said: “If business leaders don’t commit to addressing tech debt now, it will lead to loss of resources, productivity, talent, and have huge security implications.”
The company also notes the value of a neutral third party, who may be able to take a broader look at the company where having multi-department tech debt could make it hard for execs to organize.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!