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In 2021, mergers and acquisitions (M&A) hit a record high of $5.9 trillion—64% higher than 2020.1 Financing was readily available, with interest at near-zero rates all year.2 Then came interest rate hikes, inflation, and war. In 2022, M&A plunged more than 30% to $3.6 trillion.3
The party may have ended, but for many of the merged and acquired companies, plenty of work remains to integrate systems and settle tech debt.
Think of tech debt as personal fitness for your organization’s information technology. The longer you put it off, the more work will be necessary to catch up.
Any time a systems recency update or tech stack upgrade is delayed in favor of spending resources and time on other priorities, tech debt grows. As it does, the real cost of eventually paying the debt increases—with interest.
- IT environments become more complex.
- Operational agility erodes.
- Cybersecurity vulnerabilities multiply.
- Cost redundancies endure.
With the end of cheap lending, now is the time for IT and business leaders to address tech debt. Read on for four guiding principles to keep in mind as you do.