First Annual CAST Study Reveals Over $1 Million of Hidden Costs in An Average Business Application

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Structural flaws of business applications, such as outages, performance degradation, security breaches, and data corruption, have long been a major driver of high IT cost. This week CAST released the results of the largest software quality study using 288 IT applications from 75 companies in various industries, to provide IT executives with valuable information they need to manage the cost and risk of their IT applications.

The study, which analyzed the problems of these applications and the cost to fix them, revealed that each average-sized application translated into a technical debt of over $1,055,000. It also found that applications in government agencies scored lowest in changeability, an attribute that makes an application easier to modify or to transfer to another team. Low changeability scores indicate an application is more difficult to maintain, a condition that magnifies its technical debt. Results also showed that software quality scores tended to be highest where there was a business mandate, such as higher security scores for the core business applications that run financial services.

These findings stress the importance of fixing structural quality problems in order to avoid risks of outages, breaches, and other costly problems in the near future. If these high technical debts are prevented early on, IT executives can make much better use of their resources to develop new competitive functionality for their businesses. Read the full study results here.

Filed in: Technical Debt
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