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What is the “IT debt” of your company?

Recently, an analytical company Gartner published a curious press release , which assesses the size of the global IT debt (IT debt) this year at $ 500 billion, with the potential to increase it to one trillion dollars in five years. What are they talking about?

The concept of "IT-debt" appeared in the back of IT-consultants recently, but has already caused a lot of criticism . This is a kind of metaphor that is intended to hint at the need to pay interest annually (by analogy with government debt), if the company does not spend significant resources on updating its software.

The concept of "IT-debt" is based on two theses.
Based on these two theses, it turns out that every year the company pays "interest" in the form of reduced labor efficiency for the use of not the most current software. The cumulative IT debt of the world economy is supposedly growing and will soon be approaching a trillion dollars.

The growth of IT-debt is directly associated with an increase in the amount of software that is in circulation. For example, one of the corporate software developers estimates IT debt at $ 2.82 for each line of code . Thus, IT debt for an average application of 374,000 lines of code is $ 1 million. The more software in the global economy - the higher its dependence on IT, the higher the IT debt.
Last year, the National Science Society of the United States issued a grant of $ 465 thousand to study the concept of IT-debt and its consequences.

What follows from this and what we do - economists have not yet come up with. Maybe this is just sophistry in the traditional style of business consultants. Such concepts are ideal for powdering the brains of clients from the corporate environment who have ordered consulting services. A sort of horror story in the style of Y2K, they say, if you do not pay for the software upgrade, then all computers shut down increase your debt and will pay interest forever.

Or maybe this is something serious and some kind of negative for the economy. But even if this is the case, then it will be pleasant for the software industry workers to know that the world economy is increasingly dependent on IT infrastructure and has become addicted to information technology. For example, the NYSE Stock Exchange in its current form cannot be imagined without the computer information network and the purely electronic exchange NASDAQ. Many other businesses are also turning into a purely software phenomenon.

Source: https://habr.com/ru/post/105939/

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