IAM tech debt: Balancing modernization and legacy identity infrastructure

“As enterprises modernize their identity systems to keep pace
with multi-cloud strategies, they find themselves in a quagmire of
technical debt, complexity, and resource constraints.” – State of Multi-Cloud Identity Report 2025

Technical debt in identity and access management (IAM) is a growing concern for organizations — as they balance the need to modernize their identity systems with the constraints of managing legacy infrastructure. 

According to Gartner, “IAM technical debt impacts quality, delivery timelines, and budgets of IAM teams.1.” It often goes undetected until it becomes a critical issue. The key problem is that companies often prioritize new features over fixing legacy identity controls. So, the accumulated tech debt brings about significant security vulnerabilities, unmet IAM objectives, and dissatisfied stakeholders.

This issue is not unique to IAM, but it does have its own set of distinct challenges compared to general IT tech debt. IAM tech debt can hinder innovation and operational agility for organizations with legacy infrastructures, especially those older than a decade. 

Modernizing legacy systems is essential — first, for improving security, but also for keeping up with competitors who aren’t bogged down by legacy identity environments. A good example is smaller, agile Fintech companies that may have a more streamlined app and user experience than a big bank tied to legacy IT. 

What is IAM technical debt?

Technical debt in IAM refers to the accumulated inefficiencies, outdated systems, and patchwork solutions organizations use to manage user identities and permissions. While the concept is similar to general IT tech debt, IAM technical debt has its own complexities because it directly impacts an organization’s security posture, compliance efforts, and ability to manage access effectively.

One way to think about IAM tech debt is like an “umbrella catch-all,” encompassing legacy systems, outdated protocols, and inconsistent identity governance. For example, many early identity systems relied on simple username and password databases, with credentials stored inside individual applications. That practice is no longer used today due to its inherent insecurity, but it was once common.

Unlike cloud-native organizations that built their IAM processes with modern infrastructure in mind, legacy companies — especially those in sectors like banking or manufacturing — have layered multiple identity solutions over the years without fully integrating them. The result is a fragmented IAM environment, which makes it difficult to apply new security features or maintain best practices across the board.

IAM technical debt goes beyond the use of old systems. It reflects years of decisions that now hinder organizations from adopting modern, efficient identity management practices. While general IT debt may focus on outdated code or hardware, tech debt from identity and access management presents a broader risk, directly affecting the organization’s ability to control access, protect data, and meet regulatory requirements.

How does tech debt accumulate?

IAM tech debt builds up when organizations prioritize short-term solutions without considering long-term impacts. While these decisions may make sense then, they eventually become problematic. 

Companies often rush to meet new regulatory requirements or implement security features by adopting workarounds or shortcuts, deviating from best practices. Over time, this accumulation of decisions weaves a complex web of IAM solutions that are difficult to maintain and integrate with modern tools.

Gartner highlights that this situation is worsened by the scarcity of skilled IAM professionals. “Challenges with finding quality IAM resources and skills require organizations to do more with less, resulting in using workarounds and shortcuts that cause IAM controls to deviate from best practices.” As a result, organizations end up with an IAM environment that is overly complex, poorly integrated, and difficult to modernize.

Which types of organizations are prone to building IAM tech debt?

Older organizations are especially susceptible to tech debt accumulation. Those that have been around for decades often find themselves managing identity systems designed when security standards were far less sophisticated. As noted above, early systems relied solely on usernames and passwords stored within individual applications, which will typically turn into a highly insecure and fragmented identity environment today.

What problems does tech debt cause?

Think of IAM tech debt like a hidden “trap door” in a house — forgotten and unattended but still capable of being exploited and causing many problems.

Security gaps caused by tech debt

The most obvious problem with IAM tech debt is that it creates security risks. The adage about humans being the weakest link in the cybersecurity chain applies equally to legacy systems and outdated identity protocols. Attackers can exploit these vulnerabilities, gaining access through old applications or poorly managed credentials. 

Inconsistent access policies
Legacy systems and patchwork solutions often lead to misaligned or outdated access controls, increasing the risk of unauthorized access.

Inefficient identity lifecycle management
Technical debt can delay user onboarding/offboarding or role updates, exposing sensitive systems to insider threats or orphaned accounts.

Weak authentication protocols
Older IAM systems may lack modern features like multi-factor authentication (MFA), leaving organizations vulnerable to credential-based attacks.

Lack of  interoperability 
Disparate IAM solutions for on-premises, cloud, and hybrid setups result in gaps that attackers can exploit, especially in multi-cloud environments.

Legacy application vulnerabilities
Applications dependent on deprecated IAM protocols lack proper security measures, making them prime targets for attackers.

Inertia and stalled innovation from tech debt

Another key concern is that tech debt stifles innovation. With developers and security teams constantly focused on patching old systems, they can’t dedicate resources to new projects or strategic initiatives. What happens is companies are forced to choose between modernizing their identity environment and maintaining their old systems. The result: a cycle where critical projects are delayed, and tech debt continues to grow.

When tech debt reaches a critical mass, instability can lead to missed objectives and dissatisfied stakeholders, which only undermine the very purpose of IAM: to secure and manage identity effectively.

Ultimately, managing IAM tech debt is like running a manufacturing plant with outdated machinery. While the equipment might still do the job, it’s inefficient, causes risks, and requires constant attention and maintenance. Over time, the plant can’t produce as efficiently as its competitors, who have invested in newer, more agile systems.

The ROI of addressing your tech debt

While addressing IAM tech debt may require significant effort upfront, the return on investment (ROI) is undeniable. Fixing IAM tech debt frees up resources that would otherwise be spent maintaining overly complex and poorly integrated systems. When tech debt is met head-on, organizations can focus on enhancing their IAM capabilities and adopting more modern security practices.

Addressing IAM tech debt leads to security improvements and cost savings by reducing the need for constant maintenance and developer hours. Perhaps the most important thing to note here is that tech debt creates an “opportunity cost,” where the time spent patching old systems could have been used on projects that drive innovation and revenue. Eliminating or reducing IAM tech debt allows organizations to reallocate resources to more strategic initiatives.

For many organizations without resources for new projects or IAM modernization efforts, tech debt is not only a drain on time but also a critical risk. A company needs to find ways to streamline its IAM environments and reduce the burden of legacy systems to move forward.

Finally, there’s the boost to morale. Addressing IAM tech debt can profoundly impact developers and IT staff, who often feel demotivated when their work revolves around maintaining outdated systems. Freeing up these valuable teams to focus on more cutting-edge work can be a huge motivator for current employees and attract top future employees, thus furthering innovation.

Get out of IAM technical debt with Identity Orchestration

The solution to IAM tech debt lies in automation and modernization, and one of the most effective tools for achieving this is Identity Orchestration. Identity Orchestration serves as an abstraction layer that automates the integration of various IAM systems, making it possible to modernize without the risk of breaking older, critical applications. Instead of requiring manual intervention to update or connect legacy and modern systems, orchestration automates these processes, reducing the resource burden on developers and IT teams.

Identity Orchestration is a way to free up what we like to call “wooden nickels” that would have been spent maintaining old systems and instead allocate them to more strategic areas. With orchestration, organizations can bridge the gap between outdated IAM systems and new identity management solutions without disrupting operations.

With Identity Orchestration, you can accomplish your goals in identity security: 

• Leverage your investments
• Complete your migration
• Integrate decades of identity architecture
• Break vendor lock-in
• Use the services that work for your organization

Orchestration also simplifies managing identities across decentralized environments to provide a centralized layer of governance and control.

Modernize identity without spending years unwinding technical debt 

Leveraging Identity Orchestration, organizations can gradually eliminate their IAM tech debt, reduce the risk of security breaches, and free up resources for innovation. 

The key to success here is improving IAM observability, simplifying application enrollment, and replacing outdated tools with modern solutions that include both centralized administration and decentralized enforcement of identity controls.

Watch this video to find out how to get out of IAM tech debt today.

1. Reduce IAM Technical Debt, Gartner Report, January 25, 2024, Nat Krishnan and Erik Wahlstrom
2. Reduce IAM Technical Debt, Gartner Report, January 25, 2024, Nat Krishnan and Erik Wahlstrom