Tech Debt

552 Words2 Pages

The CFOs are highly responsible for the IT functionality. In several companies, IT department now directly answers to the CFO. Now CFO has turned strategic and their utmost important task is to avoid tech debt and enhance the processes and services as technology platform develops. Tech debt isn’t a new term; basically, it refers to the lack of attention in building effective software development projects. Such insufficiencies are seldom produced when the future time isn’t considered or if shortcuts misfire. Financial officials, however, see tech debt and the aspects which cause inefficient usage of technology from a different perspective than the IT department does. The risk linked to running IT department poorly might result as the biggest …show more content…

Usually, 30 percent of the complete debt load depends on hiring an inefficient IT leader. Often the CFO fails to acknowledge the traits of an IT leader. Previously, companies use to put employees with high computer abilities in the IT team. But, in today’s time, this is not enough! The IT leader should know the right way to execute and handle key apps, deliver significant data and develop a good customer experience. The second point is the poor oversight. Around 25% of the tech debt basically stems from the inefficiencies in reporting, discipline as well as strategic focusing. Malfunctioning and outdated systems stand third in the picture with 20% of the role in the tech debt total. Irrational spending stands 4th with 15% of debt responsibility. It could be because of over spending, under spending, poor allocation of resources and more. You can set spending benchmarks by looking out for the expenses of similar sized companies in your segment. Last but not the least factor responsible for tech debt is chaos, standing at 10%. Several companies have cross-functional procedures, incomplete data, separate systems which cause chaos leading to tech

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