In the digital era, the state of an organisation’s technical debt speaks volumes about the relationship between IT and the business. Technical debt, the accumulation of outdated systems and quick-fix solutions that later require rework, isn’t just a technology problem, it’s often a symptom (and a cause) of deeper organisational dynamics. When IT is viewed as a strategic partner, companies tend to keep technical debt in check. But when IT is seen merely as a cost centre, technical debt can spiral out of control, leading to lost innovation opportunities and even security crises. This newsletter explores how technical debt serves as a tell-tale indicator of IT-business alignment, the consequences of ignoring it, and best practices for tackling it head-on in partnership with the business.

Technical debt refers to the challenges created by old, outdated systems and quick-fix solutions that later require costly rework. Originally a software development metaphor, technical debt describes the “interest” one pays for choosing an easy, short-term solution instead of a better, more robust approach that might take longer. Just as financial debt accumulates interest, technical debt accumulates complexity and risk over time. For example, skipping proper architecture now may speed up a project, but it means extra work later to integrate new features. Over the years, this debt can build up to the point where a large portion of IT budgets and developer time is spent just keeping the lights on (maintaining old code and systems) rather than building new capabilities. In fact, surveys have found that as much as 25% of development time is dedicated to managing technical debt. This burden grows “interest” in the form of spiralling maintenance costs, more frequent outages, and slower time-to-market for new features.
Unchecked technical debt can become unsustainable, consuming funds far above industry norms and increasing operational and security risks. Old systems often require special support and workarounds, diverting budget that could have gone to innovation. One study noted that technology leaders estimate 20% to 40% of the value of their entire technology estate is tied up in tech debt, a startling figure that shows how much opportunity cost lurks in outdated tech. The longer legacy technology sticks around, the harder and more expensive it becomes to replace, creating a vicious cycle. If left unresolved, technical debt eventually manifests in tangible problems: critical failures, inability to integrate new tools, or security breaches. As a training course summary put it, removing technical debt is often seen as an intangible benefit, but if a risk materialises through a cyber attack or major failure, the cost becomes all too tangible. In other words, pay now (modernise) or pay much more later.
The level of technical debt in a company is often a barometer of how well the business and IT teams collaborate. Healthy IT-business relationships tend to proactively manage and reduce technical debt. In organisations where IT is treated as an equal partner, technology leaders can make a compelling case for modernisation and are given a seat at the table to plan long-term improvements. These businesses view tech updates not as expenses, but as investments in agility, security, and future growth. By contrast, in organisations where IT is viewed as merely a cost centre or support function, technical debt often accumulates unchecked. If the business dictates priorities with little IT input, projects to pay down debt (like replacing legacy systems or refactoring code) get sidelined in favour of short-term business demands. Unsustainable technical debt is a tell-tale sign of a poor IT-business relationship, suggesting that the business may be undervaluing IT’s input and IT might be struggling to communicate the urgency of infrastructure needs.
To illustrate, consider two contrasting scenarios:
IT as Strategic Partner vs. IT as Cost Centre
Aspect
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Strategic Partnership (IT as Equal)
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Cost Centre Mentality (IT as Subordinate)
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Governance & Leadership
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Tech is prioritised at the top. The CEO/CFO actively support IT initiatives, and the CIO has a seat in strategic planning. Business and IT share accountability (e.g. joint steering committees for major projects).
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Tech is treated as a back-office issue. Decisions on projects and budgets are made by business leaders alone. IT is often blamed for tech problems but not consulted on prevention.
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Investment Approach
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Regular investment in modernising systems and paying down tech debt is viewed as necessary for long-term value. Modernisation efforts are funded and seen as business initiatives, not just IT projects. (For example, upgrading an ERP involves re-engineering business processes too, with joint ownership.)
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Upgrades and refactoring are seen as costs to minimise. The business tends to prioritise short-term profit over tech improvements, with 74% of firms admitting they invest in immediate gains rather than modernising legacy systems. IT budget is squeezed to “do more with less”, so legacy systems linger.
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Communication & Planning
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Ongoing two-way dialogue. Business leaders make an effort to understand basic technology constraints, and IT leaders frame technology needs in business terms. Plans are made together, aligning tech roadmaps with business goals.
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Minimal communication until something breaks. Business leaders might say “just make it work” without understanding the implications. IT proposals for infrastructure improvements are often dismissed as not ROI-driven. This disconnect means no shared roadmap for reducing debt.
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Priority Setting
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Balanced priorities. If a legacy system poses risk, both sides recognise it as a strategic issue. There is flexibility to occasionally slow down new features to address foundational fixes. Tech debt is managed as a risk, not just an engineering detail.
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Business priorities dominate. IT is pressured to deliver new capabilities continuously, while maintenance is neglected. Technical debt repayments (system upgrades, code refactoring) keep getting deferred, perhaps until a crisis forces the issue.
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Outcomes
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Lower technical debt, higher agility. Systems are more up-to-date, enabling faster launches and easier integration of new tech. Fewer surprise outages or security incidents, and an IT environment that can support innovation like AI when the business is ready.
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High technical debt, frequent firefighting. Outages or security incidents are more common as legacy components fail (indeed, accumulated tech debt increases operational risks and outages). The organisation struggles with slow time-to-market for new products. Efforts to innovate (e.g. adopting AI) run into roadblocks due to antiquated systems.
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In short, when IT and business work in lockstep, technical debt is kept within sustainable bounds. The business understands why modernisation matters, and IT can advocate effectively for the tech investments that prevent “debt” from piling up. In contrast, a siloed or hierarchical relationship leaves little room to address underlying tech issues. Over time, that neglect becomes visible as creaking infrastructure and escalating maintenance headaches.
It’s telling that business performance often correlates with how well technical debt is managed. A study of 220 companies found those with the lowest tech debt (top 20% in a “Tech Debt Score”) enjoyed revenue growth 20% higher than those with the most debt (bottom 20%). Strong performers tend to proactively pay down tech debt, securing a foundation for future growth, whereas companies that let debt balloon often enter a downward spiral of failed IT projects and stagnation. In fact, organisations in the bottom quintile for tech debt were 40% more likely to have critical IT modernisation initiatives incomplete or cancelled. This isn’t to say technical debt is the only factor at play, but it reflects a broader point: treating IT as a strategic partner goes hand in hand with better outcomes, while treating IT as just a cost leads to mounting invisible problems.
Consequences of Ignoring Technical Debt
So far, we have established that technical debt is a key indicator of IT-business alignment. But what happens when technical debt grows unchecked? The consequences eventually surface in very real ways.
Security Risks: How Legacy Systems Invite Cyber Attacks
One of the most serious dangers of excessive technical debt is the increased risk of cyber attacks and operational failures. Ageing, unpatched systems are soft targets for attackers. When business leaders dismiss upgrades or postpone replacing old software (perhaps viewing it as “just an IT issue”), they may unwittingly be putting the entire firm at risk of a breach or outage. Consider a few real incidents that highlight this threat:

These incidents share a common thread: outdated technology (a form of tech debt) often serves as the weak link that attackers exploit. Studies show nearly half of known exploited vulnerabilities are tied to legacy or unsupported software. Once a system falls out of support, it stops receiving security patches. From that point on, every new vulnerability remains an open hole: one analysis found an average end-of-life software product accumulates 218 new vulnerabilities in just the first six months after support ends. It’s no surprise that attackers actively seek out such gaps. Verizon’s Data Breach Investigations Report revealed that exploiting known (but unpatched) vulnerabilities is the initial breach vector in about 20% of cyber incidents. That's equal to the risk posed by stolen credentials. Gartner has famously estimated that 99% of exploited vulnerabilities are ones already known to IT for at least a year, underscoring that most breaches result from failures to address known issues rather than unforeseen “zero-day” attacks.
Lost Opportunities: Innovation Stifled by Legacy Technology
Even when tech debt doesn’t trigger an immediate crisis, it can slowly choke a company’s ability to innovate and compete. Today’s strategic initiatives (AI, data analytics, cloud, digital transformation) all assume a certain level of technical readiness. When a business pushes IT to deliver new capabilities but won’t invest in modern systems, it creates a paradox: the company wants innovation, but its legacy backbone can’t support it.
According to a global survey in 2025, 68% of companies said outdated legacy systems were preventing them from fully adopting new technologies like AI. In other words, a majority of organisations recognise that their technical debt is directly holding them back from pursuing modern tech initiatives. Technical debt thus becomes a roadblock to strategic business goals. A company that hopes to launch a new digital service or mobile app may find that doing so on top of brittle legacy platforms is slow, expensive, or simply impossible without first upgrading foundational systems. This mismatch leads to frustration: the business side wonders why IT isn’t delivering faster, while IT knows the real issue is the need to overhaul old infrastructure – a task that cannot be done overnight or in secret.
What’s more, customers and competitors won’t wait. If your organisation is stuck with legacy tech, you risk losing ground to more agile rivals. In the same survey, a striking 88% of IT decision-makers were concerned that technical debt was hampering their ability to keep up with competitors. Over half felt that this drag from legacy systems was likely causing them to lose customers to others. In fact, 57% admitted their reliance on legacy systems is likely causing customers to defect due to poor user experiences. These are direct business impacts: technical debt can hit the top line when customers go elsewhere, and the bottom line when internal efficiency lags.
Strategies to Manage and Reduce Technical Debt
The good news is that technical debt is a manageable problem, as long as both IT and the business acknowledge it and work together on solutions. Here are some best practices to tackle technical debt and strengthen the IT-business partnership in the process:
1. Acknowledge and Measure the Debt: The first step is creating visibility. Both technical teams and business leaders need to see technical debt not as a vague concept but as a quantifiable liability. Inventory your systems and applications, and evaluate their “debt”. Factors like age, outdated technology stack, lack of documentation, high maintenance cost, and known security vulnerabilities. Enterprise architecture teams often log attributes of each system (for example, last update date, failure frequency, code complexity). By measuring these, you can identify which legacy systems carry the highest risk and cost. Some organisations assign a simple score or grade to their tech debt (for instance, McKinsey’s “Tech Debt Score” provides a way to benchmark debt levels). If you can’t measure it, you can’t manage it. An honest assessment might reveal that 30% of your applications are end-of-life or that one critical platform is twenty years old – eye-opening facts for executives.
2. Build the Business Case - Translate Debt into Business Impact: To gain support from the business, frame technical debt in terms they care about: risk, cost, and lost opportunity. For each high-debt system identified, articulate the potential impact on operations and strategy if it remains as-is. For example: “Our customer database runs on an outdated platform; if it fails or is breached, we could face days of downtime or regulatory penalties,” or “This legacy billing system is delaying new product launches by X weeks, potentially costing £Y in lost revenue.” Speak the language of the C-suite. One approach is to quantify the “interest” we’re paying on tech debt in monetary terms, e.g. how much extra maintenance budget and staff time a legacy system consumes annually, or the financial hit if a security incident occurred. When technical folks explain the problem in pounds and probabilities, it clicks for business stakeholders. Support your case with industry stats if possible: highlight that your situation isn’t unique (remember that 74% of firms admit they often favour short-term gains over modernising legacy systems) or that companies with heavy tech debt are significantly more likely to see major project failures. These data points create urgency and justify action.
3. Prioritise and Tackle High-Risk Areas First: Not all debt is equal. Use a risk-based approach to decide what to fix, replace, or modernise first. Consider your inventory and business impact analysis, and rank items by a combination of impact and likelihood. Security vulnerabilities, unsupported systems, and bottlenecks hindering strategic projects should rise to the top. For instance, if an old server poses a serious security risk, make patching or migrating it a top priority. If a legacy application is a roadblock for a key AI initiative, put that on the short list as well. Some frameworks suggest categorising systems into buckets like “Tolerate, Invest, Migrate, Eliminate” or “Retain, Refresh, Redesign, Retire”. This helps clarify the approach for each system, whether you maintain it as-is for now, invest to improve it, migrate/replace it, or eliminate it entirely. Quick wins are valuable: if a small refactor or upgrade can significantly reduce risk, do those early. That creates momentum and demonstrates value.
4. Integrate Debt Reduction into the Roadmap: Treat technical debt mitigation as an ongoing programme, not a one-off task. Incorporate debt-removal efforts into your IT roadmap and budgeting. Making the removal of a specific bit of technical debt a pre-requisite for delivering a high-value project, the cost should be clearly outweighed by the benefit. At the enterprise level, maintain a technology roadmap aligned with business strategy that includes system upgrades or replacements in a logical sequence (perhaps spread over multiple years to manage cost). Communicate this roadmap widely: when business stakeholders see a clear timeline for eliminating, say, a problematic legacy platform within 18 months, they know there’s a plan and can lend support. Also be ready to adjust priorities if circumstances change (e.g. a vendor announces an earlier end-of-support date, or a competitor’s move makes a certain modernisation more urgent).
5. Foster a Culture of Collaboration and Continuous Improvement: Reducing technical debt isn’t just a technical endeavour – it requires a cultural shift. Bridge the gap between IT and business by establishing joint ownership of tech improvements. For example, make progress on modernisation a KPI that both business and IT leaders care about, not just an IT metric. Celebrate successes (like decommissioning a legacy system) as company achievements. It’s also wise to educate business leaders on technology basics, so they feel more confident participating in tech discussions. In one case, a CEO sent the entire top management team to technology training courses to boost their understanding of IT concepts. Moves like that can demystify IT for business stakeholders. Equally, IT leaders should practice explaining technical needs in business terms: avoid jargon and focus on outcomes (faster service, reduced risk, enabling new sales channels, etc.). When both sides speak a bit of each other’s language, it’s much easier to tackle technical debt proactively instead of waiting for a crisis.

Conclusion
Technical debt is far more than an IT housekeeping issue – it’s a strategic indicator of how well a company balances short-term wins with long-term health. An organisation drowning in technical debt likely has an IT team without a strong voice, or a business team with a short-sighted mindset (or both). By contrast, organisations that thrive digitally usually have a handle on technical debt, thanks to forward-thinking investments and a respectful collaboration between business and IT. The amount of technical debt a company carries is thus a mirror reflecting the quality of the IT-business relationship: lots of unchecked debt points to misalignment or mistrust, while manageable levels suggest integration and mutual understanding.
For business leaders reading this: What is your company’s technical debt telling you? If every new project seems harder than it should be, or if your IT team are constantly begging for system upgrades, it may be time to recalibrate the partnership. Engage with your IT leadership, ask what obstacles they face, and be willing to invest in clearing those roadblocks. The cost of addressing technical debt is not trivial, but as we’ve shown, the cost of not addressing it can be far greater, whether through security breaches, lost competitive edge, or stagnating growth.
For IT leaders: use the language of strategy and risk to make your case. Show how tech debt isn’t just an engineering nuisance but a lurking business risk and a handbrake on innovation. When you frame technology proposals in terms of business outcomes, you elevate the conversation to where it belongs – at the level of strategic decision-making.
Until next time, remember: a strong IT-business partnership doesn’t just reduce technical debt; it turns technology into a true driver of success, rather than a drag. IT Strategy Matters!
Dan – The IT Strategy Coach
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