Technical Debt – A Costly Roadblock to Federal IT Modernization

Experts in both government and industry agree that if you don’t manage your technical debt, it will end up managing you. It’s become such a challenge to modernization that the U.S. Department of Defense (DOD) has emphasized its importance by including it in the 2022 National Defense Authorization Act (NDAA[i]). FY22 NDAA’s Section 835 required the Secretary of Defense to issue a study on technical debt in software systems and provide the analysis and recommendations for any needed changes to laws or regulations.

Let’s start by understanding what technical debt means in federal IT. Technical debt happens when shortcuts are taken in software development or IT systems to meet deadlines or save costs. These shortcuts can lead to problems down the road, like outdated systems, inefficient processes, or security vulnerabilities.

In federal IT, technical debt builds up because agencies often use legacy systems that are difficult and expensive to maintain. More than half of developers believe their biggest hindrance is the maintenance of legacy systems and technical debt[ii]. Instead of fully upgrading these systems (typically due to the level of effort and organizational change management involved), patches and workarounds are applied that serve as short-term fixes but increase the system’s complexity over time. Eventually, this debt slows down innovation, increases costs, and makes systems harder to secure. It becomes a cyclic problem as accumulated technical debt creates even more issues for far-reaching and costly consequences for the government and taxpayers.

Current State of Federal IT Infrastructure

The state of our government’s technology is, frankly, alarming. Legacy systems – some dating back to the 1970s – are still running critical operations. It’s like trying to run a modern smart home with a rotary phone. According to a 2019 Government Accountability Office (GAO) report, a staggering 80%[iii] of the $90 billion spent on federal IT in the year 2018 went to maintaining these aging systems. That’s $72 billion spent on keeping the lights on rather than innovating!

Take the Internal Revenue Service (IRS), for example. In 2020, they spent about $2.8 billion [iv]out of $11.510 billion just maintaining their IT systems. Imagine spending more than 30% of your household budget into fixing old appliances instead of buying groceries or saving for the future. That’s the reality for many federal agencies. This overreliance on outdated technology isn’t just a matter of inefficiency; it’s a ticking time bomb that threatens the very foundations of our government’s operations and security.

The accumulation of technical debt adversely affects an organization’s ability to innovate and employ new technologies (e.g. digital channels), which makes it harder for the organization to retain its market share, secure clients, and stay on track with market trends.[v]

What’s at Stake Because of Technical Debt?

The consequences of this technical debt are far-reaching and costly. CAST’s 2019 report[vi] estimated that technical debt costs large organizations an average of $3.61 per line of code  – which roughly amounts to approximately $1M financial drain for a typical system with hundreds of thousands of lines of code. While this isn’t specific to federal IT, it gives us an idea of the hidden costs lurking in outdated systems. Multiply this by millions of lines of code across various agencies, and the financial burden becomes staggering.

WSJ estimates that compounded technical debt will cost the U.S. $1.52 trillion to remediate[vii]

But the stakes go beyond mere dollars and cents. Security risks pose a significant threat. Older systems are more vulnerable to cyberattacks, putting sensitive government and citizen data at risk. In an era where digital warfare is a real and present danger, these vulnerabilities could have catastrophic consequences for national security.

Perhaps most concerning is how technical debt hinders innovation. A 2019 GAO report revealed that 10 federal agencies were still using legacy systems at least 40 years old, with the Department of Defense relying on a 53-year-old system for coordinating U.S. nuclear forces operations[viii]. This highlights the direct financial impact of technical debt and how it can impede innovation. In a world where technological advancement is accelerating, this inability to innovate puts the U.S. government at a significant disadvantage.

Challenges Stemming from Poor Technical Debt Management

The impacts of technical debt ripple throughout federal operations, creating a web of interconnected challenges across innovation blockage, cyber and compliance gaps, and talent attrition or recruitment challenges.

Agencies struggle with reduced agility, finding it difficult to adapt quickly to new threats or opportunities when tied to inflexible legacy systems. This lack of adaptability can have serious consequences in areas like cybersecurity, where threats evolve rapidly. Similarly, compliance becomes another area of concern. As regulations evolve, older systems may not meet new standards, creating legal and operational risks. This puts agencies in a difficult position, forced to choose between non-compliance and costly, rapid upgrades.

Talent retention becomes a significant issue as well. Skilled IT professionals are less likely to stay in roles where they’re maintaining outdated technologies instead of working with cutting-edge systems. This brain drain further exacerbates the problem, leaving agencies ill-equipped to manage and modernize their systems. Perhaps most frustratingly, these issues create a vicious cycle. With so much of the budget spent there’s little left for innovation. This perpetuates the reliance on outdated systems, further increasing technical debt.

How to Prevent Technical Debt in Federal IT

Addressing technical debt requires a strategic, multi-faceted approach. Developing realistic and sustainable strategies for modernization is crucial. Agencies need to assess their systems and create a roadmap for updating the most critical and vulnerable areas first. This isn’t just about replacing old hardware; it’s about reimagining processes and systems for the digital age.

Adopting agile practices can help agencies build more flexible, updatable systems from the start. By breaking projects into smaller, manageable chunks and emphasizing continuous improvement, agencies can avoid the pitfall of large, monolithic systems that quickly become outdated.

A practical tool for managing this is DX360°® TechDebt Guardian (TDG). TDG helps agencies identify, manage, and reduce technical debt through auto discovery of issues and recommendation of remediation. DX360°® TechDebt Guardian categories issues by technical debt types such as code, architecture, design, infrastructure, and more, assesses the impact of discovered issues, and recommends reduction strategies with remediation level of effort (LOE) estimates. By providing actionable insights and facilitating risk-based prioritization, it simplifies the management of outdated systems and ensures long-term debt reduction strategies. DX360°® TDG integrates easily with existing IT systems, allowing agencies to streamline the compliance process and manage legacy infrastructure more efficiently.

In addition to tools, investing in training is equally important. Keeping IT staff up to date with the latest technologies and best practices is crucial for long-term success. This not only helps in managing current systems more effectively but also in planning for future needs.

Also Read: Technical Debt Management CIO Strategies

Future Outlook- Balancing Innovation and Debt Reduction

As we look to the future, it’s clear that managing technical debt in federal IT is not just an IT issue – it’s a matter of national importance. The path forward requires a delicate balance between addressing existing technical debt and investing in innovation.

Agencies need to develop long-term strategies that address both immediate needs and future goals. Solutions like DX360°® TechDebt Guardian can play an important role in this transformation by providing agencies with the tools they need to manage existing debt while minimizing the risk of accumulating new debt. With its new features, TDG offers a clear advantage to agencies aiming to modernize their systems without losing sight of compliance and cost efficiency.

Moreover, adopting technologies like AI, machine learning, and advanced analytics offers exciting possibilities. These tools can not only improve efficiency and security but also provide new capabilities that were previously unimaginable.

For agencies looking to take the next step in managing technical debt, consider booking a demo with our team at demo@netimpactstrategies.com to explore how DX360°® TechDebt Guardian can help modernize your infrastructure while reducing the burden of legacy systems.

As we conclude, it’s important to remember that every line of legacy code replaced, every outdated system modernized, is a step towards a more secure and efficient federal government. Managing technical debt is not just about fixing old systems – it’s about building a foundation for a government that can meet the challenges of the 21st century and beyond.

tdg pov 2
About NetImpact

NetImpact Strategies, Inc. is a digital transformation disruptor specializing in high-performing, secure digital solutions that redefine how technology is applied to deliver mission value.

NetImpact empowers clients with DX360°® services that accelerate mission outcomes for sustainable, lasting value using SaaS COTS products built on ServiceNow and Microsoft. Follow NetImpact on their website or LinkedIn for more.