As the CFO or the Chief Financial Officer of the Company, you must understand the primary responsibility of reducing the negative technology debt of your business. It is your duty to schedule the financial strategy of the company. As technology is a crucial part of any business setting the right financial strategies for it is incumbent upon any CFO. Under normal circumstances, the CFO is dependent on the CIO or Chief Information Officer for understanding the technological part. It is very useful of the CFO to have some idea about a technical part for understanding technical debt. If the CFO has no understanding of the technical part, then it’s hard for him to make right decisions about the financial direction of the company. Here are a few things that can be done to reduce the technological debt of a company.

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Finding The Right Place

There are certain places in the enterprise where technical debts are obvious. One of those locations is the software development life-cycle of your company. Any debt in this process should be addressed immediately. If the software development team takes time in refactoring the wrong codes then-then, this debt will keep accumulating and take a large shape. It will be harder to correct the wrong codes as it will become cumbersome. One must be able to scrutinize the entire process of a company and find out the regions where technological debts are growing and reduce them.

Legacy Systems in the company

There are a few legacy systems in the company known as the end of life. There are hardware, software, development and support costs, used to support the costs of the company referred to as the end of life systems. As a CFO you should replace these systems as soon as possible. These systems not only take a portion of your entire budget but also employ a lot of IT resources. As a CFO it is your responsibility to replace these systems as soon as possible and cut costs so that you can reduce your technological debt.

Differences from financial debt

There are vast differences between technological debt and fiscal debt. If you have enough financial resources, it becomes easier for you to repay financial debt. However, that is not the case with technological debt. With a good team of software professionals, it is sometimes harder to pay technical debt. Even after restructuring and refactoring of some codes, the programs might not run. It can be a massive headache for the company. To know some ways out of it, you can click here.

Good and Bad Debts

Some technological debts are real. It is crucial that you should be able to differentiate between real tech debts and bad tech debts. Some debts can enhance your net worth and shares of the company in the market. If you launch a product which has some insignificant faults but does excellent in the market, then it is a good technological debt for you. These deficits generate good value for your business, enhance the reputation of your company and are excellent for the financial situation of the enterprise.

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