The Paradox of Dysfunctional IT Companies: Thriving in Chaos
Chaos reigns in the world of IT, yet somehow, some of the most dysfunctional companies don’t just survive — they thrive.
Let’s talk about the game-changing, AI-powered, blockchain-enhanced, machine-learning cloud solutions with cutting edge, multi-dimensional scalability, built on a hyper-intelligent, self-optimizing platform, leveraging robust big data pipelines and real-time predictive analytics. These solutions are transforming our future, one disruption at a time.
Meanwhile the reality is less glamorous. The code base is old and messy, new features are constantly added, bugs are either patched up quickly or just ignored. Blank screen all day on the landing page? Who cares? Management is all over the place, they don’t know what software is, but some of them go and warn us that we need to “manage their expectations”, otherwise they will be upset and get you fired. And of course, they have big expectations despite never having written a single line of code in their lives. Employees don’t last more than a year, and the big promises made are rarely kept. The technical leadership? Dinosaurs. The ones who didn’t go extinct — yet. Meanwhile the sales team keeps pushing snake oil while the developers scramble to keep everything from falling apart.
And yet, these companies keep running. Some even grow. How? Let’s take a look at the messy, confusing but oddly successful world of dysfunctional IT companies.
How are they still able to operate? Is it the brand reputation? Is that why despite the countless negative reviews on Google and Glassdoor, people still consider working for them? Or is it because people are desperate for opportunities? Junior and career changer developers are eager to break into the industry and will take any job for little to no money — after all, their real payment is the “experience”.
The Lesser Evil
Some stay afloat because of the communities they support, positioning themselves as the “lesser evil” among competitors. They may be dysfunctional, but most of the product is okay-ish, their mission is noble and they put effort into relationships with the client. They might simply don’t know any better.
The Investor Cash Pipeline
There are the companies who got attached to investors’ money like a lifeline, milking it for as long as possible. They stay afloat by selling dreams and empty promises. Investors pour in millions, and when the company burns through the funds, there’s always another rich friend willing to buy into the hype.
We see it all the time on LinkedIn: “Company XYZ just secured $65Min funding!” — and the comments flood with with “Bravo!”, “Well done!”, “You guys deserved it” and other nonsense. What are they celebrating? The organization just created another boss for itself.
And let’s be honest — this isn’t always sustainable. Rapid growth sounds great until miscalculations happen and the company that scaled up too quickly has to downsize just as fast. Should we really be celebrating these companies? Shouldn’t we be praising the ones who are building a sustainable business model? Shouldn’t organic growth be more valued?
Meanwhile, these investor-funded companies spend ridiculous amounts on hiring and marketing, burning cash as it were infinite. But when the hype runs out, so does he money — and reality hits hard.
The Complexity Trap
Some companies keep clients locked in by making migration a nightmare: poor or incomplete documentation, limited access to your own data, overly complex software, tangled integrations. Switching to another system feels overwhelming, if not impossible. And let’s be honest — it probably won’t happen. That gives plenty of time to convince the client to stay, whether through discounts or promises of new features. Of course, those features may never actually arrive.
Past Reputation
Some companies used to be industry giants, riding high on the reputation they built years ago, when their software was reliable and trusted by thousands of customers. Today, they rely on that past glory and old relationships to stay afloat, still continuing to benefit from their legacy. These companies often share a few common traits: they have strong PR, they maintain the product as cheaply as possible (often relying on junior tech personnel), and they fill senior roles with individuals with impressive CVs just before putting the company up for sale. Once the sale is complete, they cash out and never look back.
My hunch is that there are a few very manipulative individuals who know exactly how to secure a bit exit, and together they make it happen.
Profiting from Public Funds
There is always that one company that seems to snag the majority of government projects, charging sky-high prices for low-quality results. Somehow, they always manage to land the big contract, the funds are secured by taxpayer money and yet the delivered software is pure disappointment: Need something done? Well, how about filling out a document and submitting it into this “perfect” new software? You try setting up 2FA, then downloading the form, only to realize you need Java 11 Microsoft word and Microsoft Edge. You call the institute for help, and they tell you it’s actually easier to just come in person, so you take the next morning off and handle bureaucracy the old-fashioned way: in person with pen and paper.
There is no way these companies would survive without the government ties. The only thing they are really good at is squeezing as much as they can out of those public funds while providing as little as possible in return.
The Other Side of the Coin
Not all companies are chaotic, and dysfunctional behavior isn’t necessarily permanent — it could simply be a phase in the organization’s evolution. The tech world used to be unregulated and once promised easy money, where a quick idea could be turned into app, attracting users and funding. Many companies jumped in, even without a deep understanding of software, just eager for their slice of the pie. The landscape is still changing rapidly. The golden opportunities are disappearing just as quickly as they appear.
Final Thoughts
In panic mode, the focus shifts to maintaining appearances. This strategy might work on the short term, but it won’t last. Customers will eventually notice the cracks and a competitor will rise, moving faster because they already have a blueprint — they have all the functional requirements they need, all the customer feedback from multiple platforms as well as the employee concerns. It’s only a matter of time before people stop wanting to work for that company or use its products.
On the other hand, if product quality is prioritized, employees feel valued, relationships with customers are nurtured, success will follow.
