The True Cost of Tech Debt: How Legacy Systems Undermine Innovation

Industry Context
Technology debt, often accumulated through outdated software, unpatched systems, or quick fixes, can silently erode a company’s agility and security posture. While it may seem easier to postpone system upgrades or rely on legacy platforms, the long-term costs can be significant.

Past Challenges
Many organisations that delay modernising their infrastructure face slow product release cycles, struggle to meet evolving regulatory requirements, and become vulnerable to cybersecurity threats. These issues not only hamper innovation but also expose businesses to operational and financial risks.

Real-World Examples
• In 2017, Equifax suffered a massive data breach that resulted in $575 million in fines, traced back to an unpatched vulnerability in Apache Struts.
• Shipping giant Maersk lost $300 million due to the NotPetya ransomware attack, which exploited outdated Windows systems.
• NHS Digital encountered difficulties rolling out COVID-19 dashboards because of fragmented IT architecture and inconsistent data sources.

Opportunity
Modernising core IT infrastructure can accelerate development cycles, enhance compliance, improve resilience against cyber threats, and unlock the potential for advanced data and AI initiatives. Companies that proactively address tech debt position themselves to innovate faster and with greater confidence.

Risks
Failing to tackle tech debt can lead to failed audits, amplified cyber risks, and delayed business transformations, jeopardising competitiveness and growth.

Positive Future + XPS Role
XPS partners with organisations to audit and visualise tech debt across enterprise systems. By aligning IT health with business objectives, we help unlock trapped value and enable smoother, more secure transformation journeys.