How Tech Debt Will Hold Your Business Back from Seeing Success

While it might be tempting to take advantage of deals, sales, and even “free” technology, it’s crucial that you acknowledge you’re losing something valuable as a trade-off. The problem with tech is that “cheap” and “quick” doesn’t translate to “effective” and “valuable.” If you’re not careful, you might find yourself a victim of “tech debt,” an issue that can create serious problems for your business.

Breaking Down Tech Debt

Tech debt consists of the costs you will eventually incur as a result of quick fixes rather than following a strategic approach to your IT. Here are some examples:

• Electing to underinvest in hardware
• Neglecting to update, upgrade, or patch software
• Failing to train employees
• Not scaling the way your business requires

I know what you’re thinking—big deal?—but rest assured that these issues can escalate into larger problems over time, if you let them.

Tech Debt and Larger Costs

Let’s break tech debt down into a series of logical stages that you can expect to experience should you incur it.

The less reliable your technology is, the less reliable you seem. Working with a business with unreliable tools is frustrating, and you can only expect your customers to put up with you for so long before they jump ship for a more reliable option.

Cheap technology that needs frequent fixing costs you more versus more stable options. This one is basic math. A less expensive technology that requires more fixes throughout the day will be more expensive for you than a newer, properly maintained option, even if the new tech is double the cost. Here’s an example using tech that needs to get fixed 10 times per day.

10 * x > 1 * 2x

In this case, being cheap doesn’t pay off in the end.

Older technology makes expanding your business plans more difficult. It’s hard to scale a business when you’re relying on legacy systems that weren’t built with this kind of scaling in mind. You’ll face greater costs over time while you struggle to grow.

Older technology is more susceptible to security issues (and their costs). Legacy systems are inherently less secure than more modern ones, so you’re looking at greater risk and potentially even greater costs over time with older technology.

Out-of-date technology leads to slower and more complicated work processes. Some tools just aren’t meant to keep up with today’s fast-paced business environment. Keep your IT updated so you don’t incur costs over time, either from wasted time or wasted opportunity.

Let’s Solve Your Tech Debt Problem

If you suspect your business’ technology is holding you back, don’t waste any more time or money. Contact Phantom Technology Solutions today to get a consultation on how you can address the issues your technology creates. Learn more by calling us at (800) 338-4474.