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.