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  • Sayantan Roy

    Sr. Solution Architect

  • Published: Jun 15,2025

  • 16 minutes read

Technical Debt Management in Custom Software: A Detailed Guide

Addressing Technical Debt in Custom Software
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    “Technical debt is more than a bottleneck. It’s an unseen cost that undermines agility and innovation,” says Vincent Delaroche, the founder and CEO of CAST.

    The line between speed and stability in any custom development project is thin. 

    Let’s explain. Developers often cut corners while delivering projects. They avoid deep testing, hardcoding logic, and take a route that speeds the software development process. Result? Quality gets thrown off, and technical debt mounts.

    Like any other form of debt, technical debt needs to be paid back. And, in a typical software setting, technical debt can be reduced by adhering to a few unbeatable measures. 

    ET Telecom reports that, according to McKinsey, technical debt from old software and inefficient code is costing the global economy more than $1.3 trillion a year.

    This blog explains those and a lot more, so that business owners like you can have the peace of mind. 

    Want to learn? Let’s go!

    What Is Technical Debt?

    What Is Technical Debt in Custom Software Development?

    Technical debt, commonly referred to as code debt, is the cost of taking shortcuts to align with the custom software development process. Taking these shortcuts is like losing a piece of a puzzle: in the end, everything falls apart. It results in less efficient, harder-to-maintain code that needs additional efforts to fix. 

    Consider financial loan in this case. You avail the loan to meet urgent needs. But you have to pay it back eventually, and with interest. 

    Quite similar to that of a financial loan, even technical debt needs to be paid off. And there is a price to pay as well. While code debt enables faster delivery of a project, it incurs hefty costs in the future, like increased complexity, reduced code quality, and additional time spent on rework and maintenance. 

    What Are the Types of Technical Debts?

    Technical debt can fall into several categories. Some of them are:

    • Accidental: When team members don’t realize they have made errors due to inexperience or lack of knowledge. These include misuse of framework features, poor database schema design, improper API design, lack of scalability planning, and using outdated libraries. 
    • Deliberate: When people have intentionally made a shortcut with the intention of fixing it later. For example, hardcoding values, delaying refactoring, skipping unit tests to meet the restricted deadline, a quick-and-dirty workaround, and a single-layer security implementation. 
    • Bit rot: When code has aged poorly (not kept up with, undocumented, tangled, discarded, or neglected). Examples, using deprecated APIs, outdated dependencies, dead code accumulation, loss of original design intent, and patch-over-patch bug mixes. 

    Understanding and knowing how to recognize the technical debt categories will help you point out and implement the right techniques to reduce them.

    Common Causes of Technical Debt

    What are the Most Common Causes of Technical Debt in Custom-Built Solutions?

    Technical debt doesn’t occur in a day; it builds over time. It happens due to weak planning, changes in market dynamics and requirements, and tighter deadlines. Some of the common causes of technical debt in software projects include – 

    • Time Restrictions and Business Pressures

    One of the greatest challenges faced by most developers is time restrictions and launch pressures. To tackle such scenarios, most development teams choose speed and quantity over quality. They skip crucial steps like testing, code reviews, documentation, feedback, etc. 

    Taking such shortcuts leads to poor implementation, which further need continuous revisits and overhauls. With time, the need for reiterations to fix these quick solutions increases, leading to a mountain of technical debt.  

    • Changing Requirements

    Continuous improvements and vigorous changes are the part and parcel of agile methodologies. But the flexibility of this approach can be a double-edged sword. When developers invest in new feature development without fixing the codebase’s base structure, it leads to software with a fragile foundation. 

    Here, the code becomes demanding, duplicate logic starts creeping in, and integrations become unmanageable, and by avoiding scheduled refactoring to deal with upcoming changes, the complexity increases drastically. 

    • No Proper Documentation

    Documentation often takes a backseat when timelines are tight. But when source code lacks context or explanation, it becomes a black box for new team members. This not only slows down onboarding but also introduces risk—developers may unknowingly break functionality when attempting changes. Lack of documentation also makes it difficult to scale teams, debug issues efficiently, or repurpose existing code.

    • Old Libraries and Frameworks

    Though relying on traditional libraries and frameworks offers short-term benefits, they soon transform into a liability. As time passes, these legacy tools fail to adapt to new and updated security patches, resulting in compatibility and performance bottlenecks. Later, updating such technologies becomes a complicated and high-risk effort that disturbs the current projects and misuses resources. 

    • Inexperienced Developers

    While supporting junior developers is a corporate ethic and also brings fresh perspectives to the table, leaving them unsupervised can lead to poor design decisions and development bottlenecks. These include things like poor naming conventions, over-engineered solutions, or redundant logic. 

    Without proper supervision or code reviews, these errors pile up to increase inefficiencies in the system. With time, it affects scalability, maintainability, and overall software performance. 

    • Lack of Proper Testing

    Rigorous testing is the safety net for software development. To move faster, most teams avoid automated software testing or integration testing, making it harder to implement changes in the future. Besides, being afraid of regressions, developers tend to become skeptical about modifying the codebase. This delays innovation, and the risk of bugs getting undetected increases, causing roadblocks in production. Adequate testing builds confidence and promotes continuous improvement. 

    Why Is It Important to Address Technical Debt in Software Projects?

    Technical debt reduction isn’t just an option; it’s a business imperative. Here is why it is of the essence – 

    • Reduces Future Development Costs: Teams spend less time fixing bugs and more time building features.
    • Improves Performance: Cleaner, refactored code runs faster and is easier to optimize.
    • Boosts Team Morale: Developers prefer working with clean, understandable code. High debt leads to frustration and burnout.
    • Enhances Scalability: Future integrations, feature additions, and scaling efforts are smoother.
    • Strengthens Security: Outdated libraries and quick fixes often harbor vulnerabilities.
    • Improves User Experience: Cleaner back-end architecture enables more stable, responsive, and user-friendly applications.

    Avoiding technical debt is like promoting a leak in your ship that lets it sink. Eventually, your system’s fragility would grow, making it difficult to navigate debt effectively. 

    Tips To Reduce Technical Debt in Custom Software

    7 Best Strategies for Reducing Technical Debt in Custom Software Development

    Minimizing technical debt needs a blend of technical discipline and business buy-in. Here are some proven debt management strategies that can be of help: 

    1. Code Reviews and Pair Programming

    Routine code reviews allow for mistakes and inefficiencies to be recognized early. In addition, it also aids in establishing consistency in clean code principles. Pair programming (two developers working together on the same code) for the same reasons will also encourage knowledge sharing, improve code quality, and provide different points of view on a problem. In addition, they will also counterbalance the propensity to take shortcuts and will lead to more thorough design thinking.

    1. Refactoring Sprints

    Plan a specific time during your sprint cycles to clean up the code you have already written. These ‘refactoring sprints’ are allocated periods of time within the sprint cycles to reduce redundancy, reduce complexity, improve the naming, and enhance the structure of your code already written. Refactoring sprints are a way to manage code quality upfront so that you do not have to halt the software development activity altogether.

    1. Automated Testing

    A well-established automated software testing strategy is a prerequisite to refactoring with confidence and guaranteeing future-proofing. You would want to utilize unit tests at the function level, integration tests on how a system interacts with other systems, and end-to-end tests to establish concrete user journeys for your clients. With automated testing frameworks like Jest, JUnit, and Selenium, you can be assured of refactoring or enhancing your code, and that nothing will break unexpectedly.

    1. Use Static Code Analysis Tools

    Tools like SonarQube, ESLint, and PMD offer a huge benefit by providing community-based automated insight into the software code quality. They highlight issues like code smells, duplicated code, excessive cyclomatic complexity, and violations of best practices. These tools are like a second set of eyes, finding problems before they become major issues.

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    1. Track Debt Like Features

    Consider technical debt items to be first-class citizens in your backlog. These items, like new features, should be estimated, prioritized, and tracked. Assign story points (if appropriate) and consider how these items will also impact velocity for future work. There are many tools (like Jira and Azure DevOps) that will let you label your tasks and also categorize debt-related utility tasks so that they are visible, and you can measure them when looking at your backlog planning.

    1. Invest in Developer Training

    The tools and practices of software development are always evolving. Providing automation developers with continuing education and training (online courses, workshops, or conferences) allows them to keep up with contemporary patterns, practices, tools, and security approaches. A well-educated team will be in a better position to avoid and remediate technical debt in the first place.

    1. Avoid Over-Engineering

    Not every instance of technical debt in custom software needs to be resolved immediately. Instead of striving to achieve theoretical perfection, strive for practical perfection. Pay attention to debt that represents a risk to performance, scalability, or security. Over-engineering wastes time, but it can also add unnecessary complications that, in themselves, can become a form of debt.

    Following the above practices can help you manage and reduce technical debt, ensuring better software development for your business. 

    Avoid Over-Engineering

    What’s the Role of Architecture Reviews and Code Audits in Reducing Technical Debt?

    Architecture reviews and code audits are essential factors of a custom software process. They are valuable for their ability to identify design and implementation flaws before they become larger issues.

    • Architecture Reviews

    Conducted by senior engineers or architects with proven architectural experience, architectural reviews examine the high-level structural elements of an application. The review’s intent is to prescribe modularity, separation of concerns, and adaptability to future change. Architecture reviews help assess the risks of tightly coupled systems, bottlenecks that become resolved in unsatisfactory ways later, issues with scalability, and many others. While architecture reviews can happen at any point, implementation should occur as part of key timelines as a project develops: pre-release phases or when changing to a new stack are common places for architecture reviews. 

    Architecture reviews address two major considerations: structural and non-functional architecture. Non-functional architecture brings items like performance, security, maintainability, etc., to the table. For example, evaluating how a microservices architecture may affect inter-service communication helps avoid latency pitfalls later on. Similarly, looking at the database choice, caching strategy, etc., will save teams from large-scale rewriting later in the project.

    • Code Audits

    A code audit consists of a complete investigation into your software code quality, security, and maintainability. An internal audit will ensure your code is written to your company’s coding standards, whereas an external audit will determine the validity of your assumptions by providing an objective assessment. The audits look at code searching for blind spots, bad practices, or habits we subconsciously adopt as a development team. Auditing can intervene and support any repetitive practices, it will identify opportunities for refactoring, and ensure that critical paths are stable and secure.

    Not all audits are necessarily simply providing syntax checks these days, our audits will ensure your code conforms to SOLID compliance, assess any modules’ testability, discover vulnerabilities in your code, and check security practices, ie, the right methods to handling input and data sanitation. There are also audit tools to consider, like Checkmarx or Fortify. These tools can help automate some of the tasks and understand a baseline of activity, to ensure the health of your code is consistently monitored.

    When used as part of the development lifecycle, both architecture reviews and code audits will mitigate the potential for compounding debt, enhance accountability, and help build a sustainable foundation for growth. Over time, they create a culture of engineering excellence.

    How Do Agile and DevOps Practices Influence Technical Debt Management?

    Agile and DevOps practices fundamentally reshape how technical debt is handled by embedding feedback loops and automation into the development process.

    • Agile Practices

    Agile teams operate in relatively short sprints so that they can adapt and rework often. The opportunity to rework an Agile project is considered one of the greatest strengths of Agile methodology. Just as retrospectives identify what is and isn’t working, there is often code and/or processes that need improvement. Technical debt can be explicitly added to the backlog and discussed during grooming sessions, ensuring it’s not ignored. Agile promotes cross-functionality, which can result in Agile teams working in integrated ways with one another, creating more simplicity in the movement toward refactoring and more effectiveness in developing a better process.

    Additionally, Agile emphasizes incremental delivery and customer feedback. This takes the pressure off developers to respond to problems quickly without creating ambiguity beyond a short-term fix. Technical debt becomes an acceptable by-product of agile workflows, not a hidden risk. Additionally, methods like Test-Driven Development (TDD) or Continuous Refactoring play well with Agile and allow teams to consistently pay down debt.

    • DevOps Practices

    DevOps has automation, monitoring, and continuous feedback. CI/CD allows for smaller and faster deployments, which are easier to tune and correct. CI/CD pipelines have automated testing, linters, and performance checks that lessen the chance that debt gets inadvertently created. Practices such as Infrastructure as Code (IaC) lessen human errors created through manual setups, and configuration management tools can work to create consistent environments.

    DevOps also allows for technical debt reduction by providing visibility into application quality. Real-time metrics on performance, uptime, and errors can provide teams with insight when debt-related issues are affecting the users. Automated rollback mechanisms lessen the fear of releasing changes, encouraging experimentation and iterative improvement.

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    Agile and DevOps fuel a more mindful approach to software development with smaller changes, lower risk, and higher quality code. Both Agile and DevOps practices work to minimize the chances of creating unmanageable technical debt while allowing teams to pay it down early.

    How do we identify and measure technical debt?

    Technical debt is not what we see every day or is readily visible, especially when a software seems to work just fine. But under the surface, outdated libraries, poor code quality, and shortcuts can wreak havoc, silently killing your project, increasing maintenance costs, and reducing scalability opportunities. 

    To identify and measure technical debt, consider the following steps – 

    Identifying Technical Debt

    • Use tools like Code Climate, SonarQube, and Maintainability Index to identify complex or redundant code. 
    • Identify bug pattern. Frequent or recurring bugs signal underlying technical debts. 
    • If a developer hesitates to retouch a certain code area or is continuously complaining about fragile modules, it indicates debt.
    • Gaps in automated testing suggest a higher risk of debt. 

    Measuring Technical Debt

    • Technical Debt Ratio (TDR)

    Use the formula: TDR = Remediation Cost/Development Cost to get an idea of how much rework is needed in your current project. 

    • Code Rework Time

    Calculate your code churn and rework time to measure technical debt. If your developers are spending more time rewriting or reworking code than developing, it’s evident that you are accumulating debt. 

    • Velocity Trends and Defect Density

    A low sprint velocity or higher defect counts indicate issues in your system and debt accumulation. 

    How to balance development and debt reduction?

    Maintaining a proper balance between new feature development and debt reduction is crucial for project health. Often, overprioritizing features can leave development teams with unmanageable technical debt. Similarly, just focusing on cleaning up will affect innovation. 

    Here are some ways to maintain balance between development and debt reduction – 

    • Debt Budgeting:

    Dedicate a consistent percentage in every sprint (say around 15% to 20%) to technical debt reduction and bundle it as part of your process so it can be sustainable and not disruptive.

    • Prioritize High-Impact Debt:

    Not all technical debt is an emergency. Consider putting your attention towards technical debt that highly impacts performance, security, and developer efficiency.

    • Integrate Refactoring with Features:

    When building features, identify and remove any immediate technical debt in and around the feature. This will allow change to be constant, sustainable, and without hindrances to systems.

    • Update Stakeholders:

    Use analogies with non-technical financial decision makers by saying, “Software maintenance is like servicing a car,” so they understand why they should view technical debt reduction as a long-term investment.

    • Track Debt: 

    Maintain a backlog of technical debt items with equal visibility and priority, and treat them as you would do with a feature request.

    When should you consider outsourcing debt resolution?

    Technical debt can swamp internal teams, especially those focusing on product delivery. In such scenarios, outsourcing is a remarkable option for technical debt reduction! Outsourcing frees up your in-house developers from redundant jobs, allowing them to concentrate on innovation while an outsourced specialist addresses your technical debt and optimizes your software.

    Scenarios when outsourcing seems a viable option

    • Limited expertise

    When your team does not possess the needed knowledge or architectural or DevOps skills to resolve complex technical debt, bringing in external consultants here can provide specialized technical know-how.

    • Legacy system modernization

    Taking the time to clean up or refactor legacy systems is difficult and risky. Dedicating another team familiar with legacy code to assist with the modernization process can alleviate risk and provide the needed velocity in dealing with it.

    • Backlogged development pipelines

    When dealing with substantial technical debt that is impacting the velocity of your ability to release new features, leveraging external teams can help reduce the number of blockers without having to pause feature development.

    • Software code quality audit

    Third-party teams can provide objective reporting and assessments, allowing you to identify technical debt.

    • Cost efficiency

    Outsourcing your technical debt work to a custom software development company that specializes in optimization may help you avoid the expense of hiring and onboarding a new full-time resource.

    Planning to outsource custom software development services to reduce technical debt?

    With around 15 years of experience, Unified Infotech is the top choice for custom software development solutions, helping businesses develop faster and smarter. 

    Conclusion

    Technical debt is just a part of the development process, but it doesn’t have to be harmful. Just like you wouldn’t want to rack up too much financial debt, technical debt, if ignored for too long, can become harmful, or become the reason behind the detriment of you, your team, and your customers.

    Technical debt management is about awareness, planning, responsibility, and a structured repayment process. For all organizations relying on custom software solutions, technical debt manifests itself in faster releases, secure systems, improved user experience, and happy developers. Ways to invest in your technical debt management strategy include, but are not limited to, agile technical sprints, architecture or technical review, DevOps and automation, code audits, etc. All of which will enable teams to build better, not just faster.

    Ready to build for the future?

    Take the first step and manage your technical debt today. Partner with a custom software development company near you to analyse your next steps. 

    Or,

    Contact Unified Infotech

    Sayantan Roy

    Sr. Solution Architect

    "Sayantan Roy is the Senior Solution Architect at Unified Infotech. He ensures every project achieves optimal performance and functionality. Being the visionary architect behind complex and innovative solutions, Sayantan meets client needs precisely.”

    Frequently Asked Questions (FAQs)

    How does technical debt affect the performance and scalability of custom software?

    Technical debt can significantly impact both speed and growth potential in the custom software development process. When developers take the easy route, commonly due to restricted project deadlines and a lack of foresight, software becomes less performant and scalable. 

    • Slowing Down: The increased CPU/memory footprint from poor quality code also increases load times. 
    • Scaling: One of the most severe impacts of technical debt is the inability to scale because of inflexible architecture or tightly coupled components that restrict horizontal or vertical scaling. 
    • Fracture Under Load: A runtime system becomes brittle and fragile as traffic spikes.
    • Higher Costs: Organizations tend to make all the right choices at the beginning and accumulate tech debt later. These organizations rationalize spending more on infrastructure rather than spending additional effort on logic optimization.
    • Increased Time-to-Market: Teams can spend more time fixing issues instead of shipping features.

    The net result is that technical debt is not just a developer concern; it fundamentally impacts business agility and ultimately the user experience.

    What is the impact of not addressing technical debt in custom software?

    If you don't take care of technical debt, it will compound into bigger problems down the line. The longer you ignore it, the more expensive and risky it becomes.

    Key Implications:

    • Maintenance Burden: More bugs, more testing time, more testing cycles, all lead to more rework.
    • Developer Aggression: Low morale, burnout, and high attrition because of a messy codebase. 
    • Security Risk: Obsolete libraries or patchy implementations are dangerous for software development, increasing errors and debt. 
    • Slower Feature Rollout: Even small changes will become risky and time-consuming
    • Loss of Market Agility: Product teams will fall behind competitors who maintain cleaner systems

    In short, letting technical debt go unchecked will stifle innovation, drive up costs, and decrease the long-term viability of your software.

    Can technical debt be avoided during the development of custom software?

    You can’t get rid of technical debt altogether, but you can make your problems manageable. Here’s how to do that - 

    • Think Ahead: Develop scalable architectures and code from the beginning with experienced engineers.
    • Effectively Create Clean Code: Follow the best practices (SOLID, DRY, YAGNI), and develop and enforce standards with code reviews.
    • Refactor: Make sure you have allocated enough time to clean up and organize code in every sprint.
    • Automate Testing: Robust test coverage effectively minimizes regressions, making way for adaptability and confidence in changes. 
    • Be Updated: Avoid relying on legacy tech stacks by maintaining dependencies and toolsets.

    Taking some of these steps during development may save time remediating issues and help support a scalable solution.

    What role does code quality play in preventing technical debt?

    Code quality is a defense against technical debt. When code is clean and maintainable, issues generally do not accumulate,

    • Better Readability: Reduces onboarding time and misunderstanding.
    • Better Reusability: Encourages modular design and avoids duplication.
    • Better Testability: Using lean code makes it easier to ensure automated tests.
    • Affordable Refactoring: Small, organized, and clean units are safer and less expensive to change.
    • Long-term scalability: Code that is logical and consistent today will support growth in the future.

    Note: Keeping code quality in mind as you develop is not just a technical decision; it’s a large strategic investment in the lifecycle of your product.

    How can a development team create a plan for managing technical debt over time?

    Dealing with your technical debt must be a systematic and ongoing process. You are not really “paying off” the debt; instead, you are achieving sustainable debt management.

    Here are the steps to develop a management plan:

    • Audit: Perform regular audits using tools or manual reviews to ascertain debt whose risk could hurt your project (like SonarQube).
    • Tag and Track as Debt: Raise the debt issue in your project management system so it can be labeled.
    • Prioritize Your Work: Address the highest priority, most urgent, impactful work first, especially if it has security or performance implications.
    • Allocate Time for Every Sprint: Institute whether it is 10-20% of your total sprint capacity, time to turn technical debt into productive work.
    • Set Team Goals: Define OKDs to reduce complexity or increase test coverage.
    • Review Regularly: Use retrospectives or quarterly planning review / decide technical debts with your whole team to discuss.

    It shouldn't become a large blocker if you can maintain and actively manage your technical debt. With proactive technical debt management, teams can keep innovating without fear of breaking the system.

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