Technical Debt-Related Information Asymmetry between Finance and IT

This position paper proposes a new stream of research targeted at technical debt as a source of information asymmetry between finance and IT professionals involved in information technology investment decisions. Finance teams interact with technology teams in several ways, predominantly when business cases require review and during the annual budgeting process. During these discrete interactions, finance teams are required to digest large amounts of technical strategy and architectural information chock-full of technical terminology and diagrams. Typically, the estimates for effort are soft and risk is difficult to measure. It is within this context that finance approves budgets and projects that inevitably result in the accumulation of technical debt. This paper discusses some of the dynamics at work between finance and IT teams within large complex organizations when they meet to make technology investment decisions. In addition, future research is proposed aimed at reducing information asymmetry, thereby leading to improved IT investment decisions and better management of technical debt.(1)