STX Next report highlights the challenge of technical debt

STX Next report finds technical debt, hiring difficulties and security challenges are among the largest barriers for CTOs heading into 2024

More than 90% of global CTOs see technical debt as their biggest challenge heading into 2024, according to new research from IT services and consulting company STX Next.

The company’s Global CTO Study found that 91% of CTOs see technical debt as their biggest challenge heading into 2024, underlining how many businesses face significant long-term issues that could be costly to rectify down the line, unless steps are taken to address capacity problems sooner rather than later.

According to Gartner, technical debt - or tech debt - is accrued work that is ‘owed’ to an IT system. Teams ‘borrow’ against quality by making sacrifices, taking short cuts, or using workarounds to meet delivery deadlines.  

STX Next’s survey found that the second most prominent challenge highlighted by CTOs is capacity, cited by 68%, suggesting that technical leaders are still grappling with staffing and employee attrition.

“Our survey shows that economic uncertainty has placed added pressure on businesses looking to grow and succeed,” Ronald Binkofski, CEO at STX Next said. “The skills shortage in the technology industry that has long been on the minds of leaders continues to place pressure on teams. This is particularly pertinent given the persistent danger of cyberattacks. 

“Overwhelmingly, technical debt and refactoring are the most pressing concern for CTOs, perhaps brought on by the skills shortage leading to sub-optimal solutions being implemented to save time and money. Although driven by necessity in many cases, these short-term fixes will no doubt place strain on businesses as they require more work in the long run.”

Report highlights the main challenges CTOs are facing

The research surveyed 500 global CTOs about the biggest challenges facing their organisation. Other key findings from the research included:

Security is the third most prominent challenge at 62%, suggesting that many are still battling to tame the rise in ransomware and other cyberattacks.

To add to CTOs’ existing woes when it comes to hiring, employee retention is also a significant headache, with 42% of respondents suggesting it was one of their foremost concerns.

Another prominent constraint to performance is lack of budget, with more than half (52%) of CTOs highlighting it.

Overcommitment is another key challenge for CTOs when it comes to delivery. A fifth (22%) said that overcommitment causes problems, followed by technical debt at 14% and communication failures at 12%.
“With capacity being CTOs’ next biggest concern, the data demonstrates a clear need for strategic planning so that businesses can be agile enough to ride out the challenges of the coming years and successfully meet the needs of customers and employees,” Binkofski comments. 

Binkofski believes that scaling will be the biggest area of focus for technical leaders in the next two years.

“As we look ahead to the coming year, success for CTOs will be defined by their ability to balance a commitment to consistent delivery while simultaneously accommodating growth,” he says. 

“Economically and efficiently scaling an organisation’s tech capabilities, teams, culture and processes is no easy feat. To do this, CTOs must embrace technology that can easily be scaled up according to business needs, adopt modern engineering practices, and foster a culture of continuous learning and innovation as a minimum.

“Crucially, it’s also about being careful not to scale too quickly or commit to overly ambitious projects: achieve a balance that is manageable for the business in the long run, and organisations can put themselves on a solid, sustainable growth trajectory.”


For more insights into the world of Technology - check out the latest edition of Technology Magazine and be sure to follow us on LinkedIn & Twitter.

Other magazines that may be of interest - AI Magazine | Cyber Magazine.

Please also check out our upcoming event - Net Zero LIVE on 6 and 7 March 2024.  


BizClik is a global provider of B2B digital media platforms that cover Executive Communities for CEOs, CFOs, CMOs, Sustainability leaders, Procurement & Supply Chain leaders, Technology & AI leaders, Cyber leaders, FinTech & InsurTech leaders as well as covering industries such as Manufacturing, Mining, Energy, EV, Construction, Healthcare and Food.

BizClik – based in London, Dubai, and New York – offers services such as content creation, advertising & sponsorship solutions, webinars & events.


Featured Articles

How Zscaler AI Innovation is Powering Data Protection

With its AI-powered Data Protection Platform, Zscaler is delivering cutting-edge innovations to provide comprehensive data security

How NetApp Unified Data Storage is Powering the AI Era

With powerful unified storage, NetApp is enabling organisations to accelerate AI innovation and unlock the full potential of their data assets

Tech & AI LIVE London – One Week to Go

Just one more week to go until Tech & AI LIVE returns to the virtual stage – May 21 2024

What Adam Selpisky’s Shock Departure Means for AWS

Digital Transformation

SAP & FC Bayern: Technology Drives Efficiency & Scalability

Digital Transformation

EY: Tech CEOs Double Down on Tech, Data & Cyber Investments

IT Procurement