Many organizations struggle with understanding the true cost of technical debt in their ServiceNow environment. Many platform owners know anecdotally where their technical debt lies and the issues that it is causing. But the reality is that that knowledge is not enough to justify the investment of resources for the removal of tech debt – not when there is pressure to use those same resources to deliver the next feature the business would like to employ on the platform. It’s important to keep in mind that tech debt removal is not just about getting rid of messy code or outdated configurations — it’s about the real dollars and missed opportunities that accumulate over time.
So the question becomes: How do you quantify your technical debt so that you can make better decisions around what you remove and what you continue to carry?
Here’s a practical framework to help you do just that. Consider the following three areas:
1. Cost to Remove the Technical Debt
Start simple. Estimate the number of hours required to remove the debt and multiply that by the resource cost.
Formula:
Estimated Hours × Resource Cost = Current Tech Debt Balance
Estimated Hours × Resource Cost = Current Tech Debt Balance
This gives you a baseline figure for what it would take to clean up your instance.
2. Opportunity Cost of Technical Debt
This is where things get interesting. Technical debt often blocks valuable capabilities. Quantify what those capabilities would be worth if they were implemented. Be intellectually honest here, and don't inflate the opportunity cost. We're looking for a reasonable and defensible number.
Example:
Let’s say automating a workflow would save 10 hours per week. If the fully loaded cost of the resource doing that work is $100/week, that’s $5,200/year in opportunity cost.
Let’s say automating a workflow would save 10 hours per week. If the fully loaded cost of the resource doing that work is $100/week, that’s $5,200/year in opportunity cost.
To do this well, you need to:
- Understand the business use cases that are blocked.
- Assign real, measurable value to those use cases.
3. Business Value Created by Carrying the Debt
Sometimes, technical debt exists for a reason. Maybe it’s enabling something valuable — or maybe it’s just legacy baggage. Be intellectually honest here too. If it’s creating value, quantify it. If not, acknowledge that too.
Final Equation:
Cost to Remove + Opportunity Cost – Business Value Created = Real Cost of Technical Debt
A Few Tips:
- Start low-fidelity. Don’t overanalyze. Begin with rough estimates to identify high-impact areas.
- Prioritize by value. Focus on debt that blocks high-value opportunities. If two items cost the same to fix, prioritize the one with the bigger opportunity cost.
Quantifying technical debt isn’t just a technical exercise — it’s a strategic one. It helps build the business case for cleanup and guides smarter decisions going forward.
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