Jamie Phillips discusses technical debt and how services can help reduce complexity and pay back technical debt over time. Technical debt occurs when short term design decisions increase long term maintenance costs. Services help achieve separation of concerns and make the system more modular and manageable. A phased approach is recommended to transition an existing system to use services, starting with a pilot project to prove out the concepts before applying them more broadly. Services improve interoperability, agility, and align technology with business needs by defining capabilities independently of their implementation.