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Technical debt-related information asymmetry between finance and IT

Authors:

Thomas Stablein,

Donald Berndt,

Matthew MullarkeyAuthors Info & Claims

TechDebt '18: Proceedings of the 2018 International Conference on Technical Debt

Pages 134 - 137

https://doi.org/10.1145/3194164.3194180

Published: 27 May 2018 Publication History

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Abstract

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

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Cited By

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Borowa KZalewski AKijas S(2021)The Influence of Cognitive Biases on Architectural Technical Debt2021 IEEE 18th International Conference on Software Architecture (ICSA)10.1109/ICSA51549.2021.00019(115-125)Online publication date: Mar-2021
https://doi.org/10.1109/ICSA51549.2021.00019

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Published In

TechDebt '18: Proceedings of the 2018 International Conference on Technical Debt

May 2018

157 pages

ISBN:9781450357135

DOI:10.1145/3194164

General Chair:
Robert L. Nord
Software Engineering Institute, Pittsburgh
,
Program Chairs:
Frank Buschmann
Siemens, München, Germany
,
Philippe Kruchten
University of British Columbia, Vancouver, Canada

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Association for Computing Machinery

New York, NY, United States

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Published: 27 May 2018

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ICSE '18

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SIGSOFT
IEEE-CS

ICSE '18: 40th International Conference on Software Engineering

May 27 - 28, 2018

Gothenburg, Sweden

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Overall Acceptance Rate 14 of 31 submissions, 45%

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Borowa KZalewski AKijas S(2021)The Influence of Cognitive Biases on Architectural Technical Debt2021 IEEE 18th International Conference on Software Architecture (ICSA)10.1109/ICSA51549.2021.00019(115-125)Online publication date: Mar-2021
https://doi.org/10.1109/ICSA51549.2021.00019

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A portfolio approach to technical debt management

Do Temporary Increases in Information Asymmetry Affect the Cost of Equity?

Bank interest margins under information asymmetry and centralized vs. decentralized loan rate decisions: a two-stage option pricing model

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