What is technical debt and what can you do about it?

What is technical debt and where does it come from?

The simple definition of technical debt is this: it's a situation where earlier technology decisions begin to slow down project development and generate additional costs. It often results from compromises, such as launching an app quickly at the expense of code quality, choosing technology that quickly becomes outdated, or lacking a plan for future growth.

Examples of technical debt can vary, but they all share one thing in common — problems appear later, when the project is already running. Imagine choosing a cheaper and faster solution to beat the competition. At first, everything seems to go smoothly, but over time, each app update becomes harder. The code is difficult to maintain, new features require huge effort, and finding specialists for outdated technologies becomes nearly impossible.

Technical debt also often stems from using frameworks or libraries that were popular at the time but eventually lost support. It's like building a bridge using materials that are readily available today, but in a few years, replacement parts won't exist.

Importantly, technical debt isn't always a mistake — sometimes it's a conscious decision. When speed to market or idea validation is a priority, companies choose simpler, cheaper solutions knowing they’ll “pay later.” The problem arises when the consequences of these decisions are ignored for too long. Just like financial debt — the longer you delay, the higher the interest.

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Why does technical debt arise?

Technical debt arises when, during development, we choose solutions that are quick and convenient “for now” but don’t align with the app’s long-term needs. It’s often due to time pressure or budget constraints — things need to be implemented quickly and cheaply. However, these technological compromises eventually begin to hurt the project.

Main causes of technical debt:

• Time pressure

One of the most common reasons is the need to launch quickly. Racing against competitors or tight deadlines make fast delivery the priority, not code quality. For example, a company releases an app before the holiday season, skipping code refactoring or thorough testing. The result? Short-term success, but every future change requires more work and resources.

• Budget limitations

Not every company can afford a large team or cutting-edge technologies. They often choose cheaper solutions that work but are less scalable or harder to maintain. An example? Choosing a framework that lowers initial costs but quickly becomes obsolete and expensive to update.

• Lack of long-term planning

Technical debt also arises when a project is developed without a strategy. Focusing only on current needs without considering future growth causes problems. For instance, an app architecture may suit a small project but fail under increasing user load.

• Rapid implementation of changes

In fast-moving environments, you often have to react quickly — roll out fixes or new features based on user feedback. When there’s no time to consider how changes affect the whole app, the code becomes messy. These “patches” work in the short term, but over time they make the system harder to develop.

• Lack of regular updates

Technologies that aren’t maintained become outdated quickly. Frameworks or libraries that were cutting-edge a few years ago may no longer be supported today, making app development harder. For example, a company still using AngularJS (which lost support in 2021) must now invest heavily in every change.

What are the effects of technical debt and how do you recognize it?

Technical debt is a problem that gradually starts to affect every aspect of your app and your business. It increases costs, slows down development, and reduces product quality. The biggest problem? Its symptoms build over time — the longer you ignore it, the harder it is to fix.

The effects are especially visible in three areas:

• Increased maintenance costs: Even small changes require disproportionately large effort, because the code is hard to manage and outdated technologies require additional overhead.
• Longer implementation times: New features take longer to build, delaying your response to user needs and competitive threats.
• Lower performance and stability: An outdated system slows down, and every update introduces new bugs.

How do you recognize technical debt?

The signs are clear: every change takes more time and money, new features introduce bugs that weren’t there before, and it’s difficult to find developers familiar with the outdated technologies being used. If this sounds familiar, it’s a sign that it’s time to tackle your technical debt.

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How to reduce technical debt and when is it time to update your tech stack?

Technical debt limits application growth, increases maintenance costs, and lowers user satisfaction. Reducing it is essential for scalability, performance, and staying in line with modern standards. The best strategies include:

1. Code refactoring to improve structure and make future changes easier
2. Regular tech audits to identify outdated components
3. Test automation to catch bugs faster
4. Long-term tech planning to choose platforms that will be supported for years

You should consider updating your technology stack when your current tools start limiting your project. If you're using unsupported frameworks or libraries, each update becomes risky and potentially unsafe. Modernization is also necessary when the app can’t handle increased user demand — for example, it starts lagging or crashing. Another sign is trouble finding developers familiar with outdated tech — or having to pay disproportionately high rates for them.

In such cases, updating your stack is an investment in performance, competitiveness, and user satisfaction. The process should include a tech audit, prioritizing key areas like performance and security, and phased implementation to reduce downtime risk.

Rewriting the application from scratch: when is it the best option?

Rewriting your app from scratch is a drastic but sometimes necessary way to eliminate technical debt. Although costly and time-consuming, it may be the only way to restore functionality, performance, and modern standards.

When is rewriting necessary?

Consider rewriting if the code is too complex or outdated to fix. If every change introduces new bugs, and updating the tech stack would be more work than rebuilding, rewriting might be your best option. A common example: apps written in technologies that are no longer supported, such as AngularJS, where lack of support creates security and staffing issues.

Benefits of rewriting an app:

• Simplified code that’s easier to maintain and extend
• Opportunity to implement modern tech standards that improve performance and UX
• Alignment with current business needs and customer expectations, free from outdated constraints

Challenges of starting from scratch:

• It’s a major investment in time and money
• Requires full team involvement and can delay project delivery
• Expectations need careful management — the process can take longer than expected

That’s why you should analyze whether the long-term benefits outweigh the risks and costs before committing.

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SaaS as an alternative to modernizing your app

Not every application needs to be rewritten or modernized through expensive custom development. In some cases, it’s more cost-effective to replace your system with a SaaS solution.

Why SaaS can solve technical debt problems:

• Faster implementation
• Lower maintenance costs
• No need to handle regular updates or infrastructure
• Frees your team to focus on core business goals
• CRM, ERP, and e-commerce platforms are often replaceable by cloud-based alternatives.

When is SaaS a better choice than rebuilding?

SaaS is a good option when the app doesn’t require highly specific features that must be custom-built. If your current system is expensive to maintain and could be easily replaced by existing software, switching to SaaS may be the natural solution.

Popular SaaS tools as examples:

• Salesforce (CRM)
• Shopify (e-commerce)
• Asana (project management)

These platforms offer extensive features, fast deployment, and customization, while eliminating technical debt and enabling faster business scaling.

Summary

Technical debt is the result of past technology compromises — such as fast go-to-market at the expense of quality or choosing outdated tools. It arises from time pressure, limited budgets, or lack of future planning. Its effects include rising maintenance costs, slower feature rollout, and decreasing system performance. Left unchecked, technical debt can significantly restrict project growth and market competitiveness.

Reducing technical debt requires deliberate planning and strategic actions: code refactoring, regular tech audits, test automation, and tech stack upgrades. In some cases, rewriting the app may be necessary — despite high upfront costs, this allows for cleaner code, modern standards, and a better product.

It’s also worth considering SaaS as an alternative to rebuilding. SaaS solutions remove many of the problems tied to technical debt — offering lower costs, quicker deployment, and freedom from IT infrastructure management. Platforms like Salesforce, Shopify, or Asana can effectively replace custom systems when specialized features aren't required.

Ultimately, the right strategy — whether modernization, rebuilding, or SaaS migration — depends on your project’s needs and business context. What’s important is to act intentionally and avoid letting technical debt spiral out of control.