Tech Debt

Know the Tech Debt, BEFORE you invest

When any Investment Fund asks us to audit the Tech used by their potential start-up investee, the first question we seek answer for; is "How much is their Tech Debt?"

Let’s first understand what is Tech Debt or Technical Debt.

Simply put, it is the cost of extra rework or re-engineering caused just because team chose simpler approach to solve a problem instead of better approach that would have taken more time to implement. It is a consequence of taking a short-cut during software development in order to achieve goal faster.

So what essentially causes the Tech Debt?

  • Business pressure. Pressure to go-live quickly
  • Long series of project enhancements
  • Lack of process understanding, poor exposure to industry standards, frameworks
  • Sub-optimal architectures and designs
  • Poor tech leadership and ownership
  • Lack of vision to product roadmap

If the tech debt is not repaid in time, teams have to pay interest in terms of,

  • Defects that make the product un-reliable
  • Poor code quality
  • Negative user experience
  • Challenges in scaling
  • Extra investment in terms of time and cost
  • Reduced agility and confidence of the team involved

Below are some of the ways, CTOs, CIOs can reduce their tech debt,

  • Dedicate time and capacity to identify how big is the debt, its impact on your product and then plan incremental sprints
  • Identify points that made team take on tech debt
  • Review software development strategy, re-adjust the delivery plan and publish tech debt tracker
  • Enable knowledge sharing via trainings, exposure to industry best practices, latest tech trends

Virtuoso helps #investmentfunds to identify the Technology Risks and Debts before investing into start-ups, to avoid future risks and ensure that the start-up is built on a future-proof Tech.