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Sunk Costs in Software Development: When Refactoring is not Worth it?

Sunk Costs in Software Development: When Refactoring is not Worth it?

Our previous articles in this series talked about our example company scenario and the sunk cost fallacy specific to the software development community. We even discussed code refactoring in detail.

But regardless of how much you know about risks and chances, there's still a decision to be made. Should you invest in the refactoring process?

There must be certain conditions when it’s not a good idea, right?

Well, our project managers & developers at iRonin.IT had several cases when they needed to refactor code. Some of them taught difficult but precious lessons for good software development practices. Thanks to them, we know how to start the refactoring process to go smoothly all along the way.

So, based on our 12+ years of experience, we’ll share the most common reasons for failing code refactoring.

When the Code Refactoring Process Won’t Bring Your Sunk Costs Back?

1. You just know that your business idea has failed

It could be because the whole business idea, vision, and marketing strategy went wrong from the beginning. If you don’t set clear goals for your business models & lack a well-defined target group, it’s a ride downhill. In such a case, your app won't be profitable even with the exceptionally written code, scalability, and functionalities. 

So, you need more marketing & business strategy? Sadly, no code refactoring can fix that. 

This is a good place for starting anew with an adequately suited team. Especially in case of a failed business idea, a good code can help you quickly pivot in the other direction. 

Surround yourself with good marketing specialists, project owners, and business strategists. Also, remember that there is always an option to use the help of team augmentation. Experienced project managers & developers can always support you with making better decisions for your everyday work on the app project.

2. You chose to refactor your existing code with a team lacking expertise or experience

The human resources factor has been stressed before, but it's time to do it again. Code refactoring is a complex task, and its risks get even higher if you don't stick with specialists on the senior level.

On the one hand, it seems logical that you fear further investments. You've already spent too much money on this one project! But if you genuinely want them recovered, it's time to make some difficult but rational decisions.

And believe it or not, it means to bear the cost of more expensive specialists. The proper antidote to the sunk cost fallacy is not to give up on having money invested but rather to do it right.

And how to do it right? To answer that question, we could brief up everything that has been said: Entrust development to people with considerable seniority in development, know the technology, and have a proven ability to deliver software solutions. An efficient and refined development process (and QA) and the ability to work in a team are also essential for success.

Once again, it’s good to remember about team augmentation. It can be faster, more efficient & convenient for your whole project. At iRonin.IT, we’re happy to advise you if this is the best solution in your case.

How to Make the Refactoring Process Go Smoothly?

We already discussed some practices to stick to when code-refactoring your app.

Let's gather them all here, so you know what can improve your chance of success when doing so, especially in the preparatory refactoring phase.

1. Write missing tests for each feature you are going to refactor

As mentioned before, it's an excellent opportunity to make your code foolproof. Write tests to ensure you cover all scenarios, then update the existing code. If those tests are passing, polish the final solution. It's also a great practice for all new features to avoid future technical debt.

2. Engage senior developers and software architects

It should be clear enough at this point. Stick with experts with senior experience to ensure that no further losses are incurred.

3. Overview of the bug fixes backlog

Control the pace and manner in which debugging takes place. All bugs should be noted in the task backlog and then prioritized to be fixed. Regularly revisit that backlog, ensuring the plan is followed and that the bugs with the biggest priority go into the pipeline as soon as possible.

4. Ensure the clear Definition of Done

An essential part of any project is ensuring everyone is on the same page regarding finalizing code refactoring. Make sure the Definition of Done contains QA and peer code reviews.

5. Get rid of external libraries if possible

Unnecessary external libraries increase the complexity of the application. They make the maintenance more complex and, in turn, the deployment process.

6. Ensure the human readability of the code

In many cases, the code refactoring of classes, methods, and variable names can be beneficial without touching the business logic, as it improves the readability of the code.

How to Make Sure You Never Have to Consider Code Refactoring?

When building an app, there are several good practices you can follow to ensure that you won't have to consider code refactoring later on:

1. Plan ahead

Spend time upfront, designing your architecture and thinking through the potential future needs of your app. This will help you avoid making short-sighted decisions that could come back to haunt you later.

2. Write clean code

Take the time to write clean, maintainable code that follows established coding standards. This will make it easier for each developer to work on your new code shortly and reduce the likelihood of introducing more bugs or code duplication. It's vital if you have a new feature in mind.

3. Test thoroughly

Test your refactored code thoroughly using both automated and manual testing methods. This will help you catch bugs and other issues before they can cause serious problems. It's especially crucial for all new functionalities.

4. Avoid wrong investments

Only invest a little time or money into features you know will be valuable to your users. Focus on building the core functionality of your app first, and then iterate based on user feedback.

5. Choose the right software team augmentation

Choosing the right software development team is crucial to the success of your project. Working with our experienced team, you avoid costly mistakes and ensure your app is built to the highest standards.

Want to Refactor Code? Make Sure You Do it With Experts

Avoiding the sunk cost fallacy doesn't mean giving up on a project. 

At iRonin.IT, with over 12 years of software development experience across various industries, we believe every project can thrive with the right expertise. 

We specialize in software team augmentation, offering skilled developers to guarantee your project's success. If past projects are weighing you down, reach out. We'll assess what went wrong and guide your project, from code refactoring to ensuring user accessibility.

Don't deal with the technical debt alone; consult our expert team and comprehensive checklist for guidance.

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