Tech debt drains budgets

Companies are spending millions on digitalization, yet up to 20% of IT budgets go toward fixing outdated systems instead of innovation, according to McKinsey and Polcom research. This “technology debt” acts like a hidden tax, consuming 20–40% of IT environments and 10–20% of funds meant for new products.
Polcom’s report shows most firms address the issue reactively: 52% invest only in crises, while 13% rely on costly one-off upgrades. Just 28% follow consistent annual IT plans, and they report the best results—29% say they have adequate computing power and skills. In contrast, 65% of firms without strategy still run obsolete systems.
Cloud migration is seen as a key solution. Eighty-three percent of medium-sized companies plan to adopt IaaS, PaaS, or SaaS, aiming to cut costs, scale flexibly, and accelerate innovation.