How Does Technical Debt Impact State and Local Governments?
There are many ways that technical debt can weigh on state and local government. They include a lack of agility in the face of sudden challenges, growing gaps between existing IT and emerging technologies, increased cybersecurity threats because old systems cannot be patched, and higher total costs.
“State and local governments accumulate debt when they’re not able to regularly invest in major maintenance of their IT capabilities. Maybe the application or software is not supported any longer, but you keep running it because it works,” National Association of Counties CIO Rita Reynolds told StateTech in a 2022 interview.
Typically, state and local governments invest in modernizing applications but there are many that aren’t over time, Briggs says.
“We find ourselves with increasing amounts of the technology budget going against yesterday’s concerns, and probably even worse, that’s the foundation upon which new is built,” he says.
It's important, Briggs says, not to vilify debt. After all, as financial services professionals might tell a company or an individual, not all debt is bad, and sometimes taking on debt can be strategic.
Unfortunately, he says, when IT modernization projects do get funding in the public sector, they are often addressing one symptom of technical debt. Perhaps a mainframe renewal contract is expiring, and a government or an agency will use that as a trigger to migrate to the cloud.
However, that might forestall government IT leaders from taking a more expansive view of their technology portfolios and developing, say, a comprehensive data strategy to clean data so that it can be used in artificial intelligence applications.
READ MORE: An application assessment can reduce technical debt.
How Can Government IT Leaders Measure Technical Debt?
Some IT leaders measure technical debt as part of their portfolio management strategies as they try to measure how much they are spending incrementally updating pieces of their technology stack, Briggs says.
“IT investment management is a critical part of an effective enterprise management portfolio,” Eric Sweden, NASCIO’s program director of enterprise architecture and governance, writes in StateTech. “Essentially, state government officials must ensure they are making the right capital expenditures and acquiring appropriate services to support the goals of the enterprise. State governments should establish a framework for enterprise portfolio management that includes IT investment management.”
Some IT leaders might go a step further and recognize that when they use a policy engine — software that lets them make, review and enforce rules about how network resources and data can be accessed — they are losing money because the business logic of a certain system might need to be remediated, Briggs says
“Over time, you can start measuring that there’s almost a penalty factor of, ‘Oh, if that has to hit our billing system, there’s dragons in those hills, and we can start measuring the expected overage that’s going to cost us money,’” he says.
The best way to measure technical debt is to plot a graph, Briggs says, that measures the scalability, reliability, extensibility or security of a system (day, data storage) against mission areas and messier concepts, such as how costly it is to customize business logic or not have clear architectural patterns.