Why technical debt is costing you more than you think

What is technical debt and how does it really impact the business?

Technical debt happens when teams take shortcuts to speed up development. It might be due to rushed timelines, lack of documentation, or bypassing best practices. Like financial debt, it accumulates interest: the longer you delay paying it off (by refactoring or cleaning up code), the more it costs you in the future.

For businesses, technical debt:

Slows down product development: New features take longer to ship because teams must work around messy or outdated code.
Increases maintenance costs: Developers spend more time fixing bugs and less time building value.
Introduces quality and security risks: Patching over foundational flaws makes systems fragile.
Hurts team morale: Developers get frustrated working with hard-to-maintain code.

A widely cited Stripe Developer Coefficient report estimated that developers spend 42% of their time dealing with technical debt and maintenance work [1]. Time not spent on innovation or delivering value to customers.

What are the warning signs of growing technical debt?

Technical debt rarely shows up on dashboards. But if you ask your engineering team the right questions, you might uncover:

Slower release cycles: If the pace of delivery is decreasing despite growing team size, your codebase may be a bottleneck.
High defect rate: Frequent bugs or regressions are often symptoms of poor architecture or fragile integrations.
Low developer satisfaction: If engineers complain about "spaghetti code" or struggle with onboarding, technical debt is likely a problem.
Poor documentation or missing tests: These gaps often signal quick fixes and shortcuts.

The DORA State of DevOps Report highlights that elite-performing teams maintain faster delivery and lower failure rates [2].

Ignoring these signs means you're building on shaky ground. Sooner or later, things break.

How does technical debt affect scalability and long-term product growth?

For CTOs and product leaders, scalability is a top concern. A platform burdened by technical debt struggles to scale because:

It lacks flexibility: Quick fixes are often rigid and hard to extend.
Performance degrades: Poorly structured code leads to inefficient processes.
Hiring becomes harder: New engineers need more time to get up to speed.

Real-world example: In 2012, Twitter had to rewrite much of its backend to fix scalability issues caused by early technical decisions made under time pressure. This delay in scaling cost them speed and innovation [3].

Research by Deloitte also found that 70% of technology leaders cite technical debt as a barrier to innovation, underscoring its strategic weight [4].

If your product is part of your long-term strategy, managing technical debt must also be.

What are the main causes of technical debt?

Technical debt isn't always a bad thing. Sometimes, it's a strategic choice. But understanding its causes helps you make better decisions.

Pressure to deliver quickly: Rushed timelines often lead to shortcuts.
Lack of clear architecture: Without a solid foundation, complexity grows fast.
Inexperienced teams: Poor coding practices or lack of code reviews increase risk.
Neglected maintenance: Post-launch, many companies stop investing in code quality.

Debt builds silently. A culture of "move fast" without "fix later" eventually leads to high interest rates [5].

How can technical debt be measured and tracked effectively?

You can’t manage what you don’t measure. Here are a few practical ways to track technical debt:

Code quality tools: Tools like SonarQube or CodeClimate can detect complexity, duplication, and test coverage.
Cycle time and deployment frequency: Slowing metrics often signal growing debt.
Technical debt ratio (TDR): This is the cost of fixing the codebase divided by the cost of building it. It provides a quantifiable benchmark.
Team feedback: Regular developer check-ins can highlight problem areas.

How can engineering teams address or pay down technical debt without slowing down?

It's a balance. But here’s how successful teams tackle it:

Prioritize high-impact areas: Focus on parts of the code that affect multiple systems or are frequently touched.
Adopt a "boy scout rule": Always leave code cleaner than you found it.
Refactor as you go: Schedule time within sprints for cleanup.
Make it visible: Include technical debt items in your backlog or roadmap.

Proactively managing debt can actually speed up development over time.

When should technical debt become a strategic conversation?

CEOs and product leaders often hear about technical debt only when something breaks. But it deserves boardroom attention much earlier:

During fundraising: Investors may ask about scalability and tech maturity.
When planning growth: If you're expanding to new markets or products, your platform must be ready.
After audits or incidents: If a security or performance issue revealed weak infrastructure, it’s time to act.

Turning technical debt from a hidden cost into a known variable helps leaders make better decisions.

How can cross-functional teams collaborate to manage technical debt?

Managing technical debt isn’t just an engineering issue. Product, design, and business teams must align:

Create shared language: Help non-tech stakeholders understand what technical debt means and why it matters.
Set clear priorities: Balance quick wins with long-term health.
Celebrate improvements: Treat refactoring success like feature launches.

At Mosano, we often guide clients in building internal alignment. When everyone understands the cost of debt, they become part of the solution.

Ready to reduce your technical debt before it slows you down?

Technical debt is more than a code problem. It’s a business problem. And the longer it goes unchecked, the more it costs in time, money, and lost opportunities. By learning to spot the signs early and making it part of your product strategy, you can stay ahead of problems and move faster with confidence.

At Mosano, we help companies build with scalability and quality in mind. If you’re facing challenges with legacy systems, slow development, or unclear architecture, let's talk. We'll help you identify hidden debt and plan for sustainable growth.