Technical debt (also known as design debt or code debt) is "a concept in programming that reflects the extra development work that arises when code that is easy to implement in the short run is used instead of applying the best overall solution".
Technical debt can be compared to monetary debt. If technical debt is not repaid, it can accumulate 'interest', making it harder to implement changes later on. Unaddressed technical debt increases software entropy. Technical debt is not necessarily a bad thing, and sometimes (e.g., as a proof-of-concept) technical debt is required to move projects forward. On the other hand, some experts claim that the "technical debt" metaphor tends to minimize the impact, which results in insufficient prioritization of the necessary work to correct it.
As a change is started on a codebase, there is often the need to make other coordinated changes at the same time in other parts of the codebase or documentation. Required changes that are not completed are considered debt that must be paid at some point in the future. Just like financial debt, these uncompleted changes incur interest on top of interest, making it cumbersome to build a project. Although the term is used in software development primarily, it can also be applied to other professions.
Common causes of technical debt include (a combination of):
It is useful to differentiate between types of technical debt. In a discussion blog "TechnicalDebtQuadrant", Fowler distinguishes four debt type "quadrants" based on two dichotomous categories: the first category is reckless vs prudent, the second, deliberate vs inadvertent
"Interest payments" are both in the necessary local maintenance and the absence of maintenance by other users of the project. Ongoing development in the upstream project can increase the cost of "paying off the debt" in the future. One pays off the debt by simply completing the uncompleted work.
The buildup of technical debt is a major cause for projects to miss deadlines. It is difficult to estimate exactly how much work is necessary to pay off the debt. For each change that is initiated, an uncertain amount of uncompleted work is committed to the project. The deadline is missed when the project realizes that there is more uncompleted work (debt) than there is time to complete it in. To have predictable release schedules, a development team should limit the amount of work in progress in order to keep the amount of uncompleted work (or debt) small at all times.
If enough work is completed on a project to not present a barrier to submission, then a project will be released which still carries a substantial amount of technical debt. If this software reaches production, then the risks of implementing any future refactors which might address the technical debt increase dramatically. Modifying production code carries the risk of outages, actual financial losses and possibly legal repercussions if contracts involve service-level agreements (SLA). For this reason we can view the carrying of technical debt to production almost as if it were an increase in interest rate and the only time this decreases is when deployments are turned down and retired.