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Explaining the Reason for Technical Debt


Ibrahim Gedeon is one of the telecommunications industry’s eminent thought leaders. By combining insight and skill as an applied scientist with a collaborative approach to leadership, he is now CTO Emeritus for TELUS, where he is responsible for all technology development and strategy.
“Technical debt” seems to be the buzzword these days. Simply put, technical debt is the difference between what was promised and what was delivered with a given product or service. In a 2020 McKinsey survey, CIOs reported that 10 to 20 percent of the technology budget dedicated to new products is diverted to resolving issues related to tech debt. Even more concerning, CIOs estimated that tech debt amounts to 20 to 40 percent of the value of their entire technology estate before depreciation. I don’t need to tell you that for larger organizations, this translates into hundreds of millions of dollars of unpaid debt. As CxOs know, the concept is not new. We have to be accountable for how we organize and skill our teams. Simply, I would say two major factors are the reason for technical debt: vendor selection and out-of-touch leadership. Firstly, there’s vendor selection. Using the analogy of a car rental, we can grab any vehicle off the lot and drive off. What we have in theory is a well-maintained vehicle that is usually a year or two old, and if something goes wrong, we simply ask the rental company to change the vehicle. I have done this many times with minimal thought nor penalty.As leaders, we must ensure the technologists who know how the technology operates have a voice and are heard within our team