Do You Allocate Resources Regularly to Refactor or Update Legacy Code?

As a leader of a scaling tech-driven business, your resources are already spread thin. Every pound counts, and it’s tempting to focus solely on developing new features and scaling products, rather than tending to older parts of the codebase. But here’s the uncomfortable truth: if you’re not allocating resources to regularly refactor or update your legacy code, you're setting your company up for technical debt and operational inefficiencies that could seriously derail growth.

Here’s why legacy code should matter to you—and how you can go about making sure it stays under control.

What is Legacy Code, and Why Should It Be a Priority?

Legacy code doesn’t necessarily mean ancient, dusty systems written in obsolete programming languages (although it can). It often refers to any code that is difficult to maintain, modify, or extend because of outdated practices, poor documentation, or technical debt that has built up over time. In fast-growing companies, the product may have outpaced the initial architecture. Engineers may have cut corners to meet tight deadlines, leaving behind a trail of code that isn't scalable or reliable.

The costs of ignoring legacy code are significant. From lost developer productivity as they wrestle with messy, unstructured code to missed opportunities for innovation, the impact of not addressing legacy code can spiral. For many founders and CEOs, though, it’s easy to overlook this issue until it’s too late. You’re growing, the product works, and the investors are happy. Why fix what isn’t (visibly) broken?

The Strategic Pitfalls of Neglecting Legacy Code

There’s a quote often attributed to software development: “Code is like a garden; if you don’t tend to it, it grows wild.” It’s not that you’ll wake up one day and find your product completely unusable. But over time, the codebase becomes harder to work with. Small bugs take longer to fix, new features take more time to develop, and innovation becomes slower.

In my experience working with fast-scaling companies, I’ve seen that one of the biggest risks to ignoring legacy code is strategic misalignment between business goals and technology capabilities​. Your business might be pushing for faster go-to-market, more features, and new product lines, but your outdated code could severely limit your ability to achieve those goals efficiently.

The tech team might struggle to maintain velocity, leading to frustration among the developers and tension between departments. Worse yet, the growing complexity of the code can make the system more prone to crashes, bugs, and security vulnerabilities, which can damage your reputation and customer trust.

Regular Refactoring: The Key to Avoiding Technical Debt

Refactoring is the process of restructuring existing code without changing its external behaviour. It’s essentially a tidying-up exercise. You might not see immediate, exciting results from it, but the long-term benefits are clear. Well-refactored code is easier to understand, debug, and extend. It also becomes more scalable, meaning your systems can handle the demands of your rapidly growing user base without constant firefighting.

In your context, regularly allocating resources to refactor legacy code is a preventive strategy. It’s a bit like maintaining a car. You wouldn’t wait until your engine fails to service it, right? You change the oil, check the brakes, and keep the tyres inflated so that your car runs smoothly for as long as possible. The same is true for your codebase. Routine maintenance avoids costly breakdowns down the road, allowing your business to scale smoothly.

How to Allocate Resources Effectively

One of the main reasons why CEOs and founders hesitate to allocate resources to refactor legacy code is that it seems to offer little immediate return on investment. After all, wouldn’t those resources be better spent on launching new features, marketing initiatives, or customer acquisition?

However, here’s the thing: refactoring should not be seen as a drain on resources. Instead, it’s an investment in your company's long-term scalability, agility, and product quality.

Here’s how you can effectively manage resource allocation for refactoring:

1. Make It Part of the Routine Development Cycle

Treat refactoring as an integral part of your development process, not a separate or occasional task. Just as engineers write tests or review pull requests, refactoring should be baked into the workflow. This doesn’t have to be a massive undertaking each time. Regular, incremental improvements can lead to significant results over time.

This can be done by setting aside a portion of each sprint specifically for code maintenance. Even if it’s just 10-15%, this ensures that legacy issues don’t accumulate unnoticed.

2. Prioritise Based on Business Impact

Refactoring for refactoring’s sake isn’t useful. It’s essential to prioritise efforts based on where the legacy code impacts the business the most. Is there a part of your product that’s frequently buggy, or an area that’s difficult to add new features to? Focus your efforts there. Engineers can work with product managers and other stakeholders to identify the parts of the codebase that need the most attention and will deliver the greatest business value.

3. Tie Refactoring to Metrics

One of the reasons refactoring is undervalued is that it doesn’t have obvious, quantifiable results—at least not in the short term. However, you can measure its impact by tying it to productivity metrics like cycle time, bug frequency, and developer satisfaction. These indicators will show whether your refactoring efforts are paying off. Over time, you should see fewer bugs, quicker time to market for new features, and happier engineers who aren’t constantly tripping over technical debt.

4. Build a Culture That Values Code Quality

To ensure that resources are consistently allocated to refactoring, it’s important to foster a company culture that values code quality as much as innovation and growth. This starts with leadership. When the C-suite actively supports a focus on long-term sustainability and scalability, rather than just quick wins, it trickles down to the rest of the team.

Celebrating refactoring successes and sharing stories about how cleaning up the codebase has led to faster development or fewer incidents can help shift the mindset. Leaders should also provide incentives for engineers to refactor legacy code, such as recognition programs or even dedicated refactoring days.

5. Leverage External Expertise

If your team is small or relatively inexperienced, bringing in external expertise can be an effective way to handle refactoring. A fractional CTO or an external consultant who specialises in technical debt can provide strategic insights on how to structure your refactoring efforts to align with business goals​. They can help ensure that you’re not just fixing surface issues but are addressing the underlying architecture that will allow your company to scale effectively.

The Long-Term Benefits of Refactoring

Ultimately, companies that prioritise regular refactoring are better positioned to innovate, scale, and maintain high levels of customer satisfaction. Your codebase is the foundation of your product, and neglecting it can undermine even the most ambitious business strategies.

By allocating resources regularly to update and refactor legacy code, you’re ensuring that your technology can grow with your business, rather than holding it back. Yes, it’s an investment, but it’s one that will pay dividends in the form of increased developer productivity, faster innovation, and a product that is built to last.

In conclusion, while it may seem like an overhead cost, the real question is: can you afford not to refactor? The answer, especially for fast-scaling tech companies, is a resounding no.