Study conducted as a part of the implementation of the project: “Entering American, British and Swedish markets with a comprehensive service of computer programs renovation (refactoring) by Codema”, No. POPW.Ol.02.00-06-0069/22. The project is co-financed by the European Regional Development Fund under the Operational Programme Eastern Poland 2014-2020.
EU funding for the project: 851,663.82 PLN
Optimizing Total Cost of Ownership (TCO) Costs Through Code Refactoring. Investing in Efficiency and Sustainable Business Development.
In today’s dynamic business world, cost optimization is key to achieving success and sustainable company growth. One of the less obvious but highly effective ways to reduce operational costs and achieve long-term savings is code refactoring.
What is Total Cost of Ownership (TCO)?
TCO is a financial indicator that takes into account all costs associated with owning, using, and maintaining a product, service, or solution over its entire lifecycle. It includes not just the purchase cost but also maintenance, repairs, adjustments, and all operations related to the item.
How does code refactoring impact TCO?
The impact is on several levels. It leads to positive effects on TCO as below:
** Reduction of maintenance costs: Code refactoring eliminates redundant, hard-to-maintain sections, reducing the time and resources needed for repairs and modifications.
** Minimizing error risks: Cleaner, more transparent code means a lower risk of errors. Fewer errors = lower repair costs.
** Performance optimization: Better code means better application performance, which translates into IT resource savings.
** More effective change management: Thanks to better-organized code, implementing changes becomes more efficient and less time-consuming.
What are the business benefits of refactoring?
Well-conducted refactoring directly impacts TCO and the overall activity of any company. The main positive outcomes include:
** Cost savings: Reducing maintenance and repair costs leads to a decrease in TCO over the long term.
** Increased operational efficiency: Better code means fewer problems and less time needed to solve them.
** Sustainable development: Investing in code refactoring is an investment in technological stability and sustainable development.
In summary, code refactoring is definitely a key tool for businesses to effectively manage TCO costs. Investing in improving code quality may seem insignificant at first, but in the long run, it brings noticeable benefits in the form of reduced maintenance costs, increased operational efficiency, and sustainable development.
We encourage companies to consider code refactoring with Codema as a strategic step towards optimizing TCO costs, which will bring measurable benefits for their financial stability and business development.
