Why Outsource Testing?
Software testing is a vital phase in any software development project. Frequently changing requirements coupled with a reduced product development life cycle has increased the risk of application deployment before a product is ready for the market.
Feb 09, 2009
Software testing is a vital phase in any software development project. Frequently changing requirements coupled with a reduced product development life cycle has increased the risk of application deployment before a product is ready for the market. According to a CIO survey, finding and fixing bugs accounts for almost 50 percent of the total cost of the software project. The same survey reveals that migration of the QA & Testing function to an offshore vendor can save companies up to 75 percent compared to in-house costs. Another survey conducted by the National Institute of Standards and Technology (NIST) finds that US companies spend as much as $60 billion on fixing software defects at the post-release stage. This study also reveals that third party QA & Testing could have saved companies nearly $20 billion.
The direct cost of quality in terms of staff time by itself is a compelling reason for considering a new business model for QA & Testing. More difficult to measure, though just as significant, is the lost revenue in terms of new business and current customer satisfaction that may have turned into increased revenue opportunities. Using an Offshore Outsourcing organization can reduce both direct staffing cost (by using less expensive resources overseas) and lost potential by assuring a higher quality product and ultimately more satisfied customers before the product is launched into the marketplace. Migration to a test driven lifecycle model with the goal of Independent Verification & Validation (IV&V) will give organizations that choose to focus on creating a culture of quality a competitive advantage in the marketplace.
The objective of using Offshore Outsourcing is based on price arbitrage where lower cost resources are used to perform functions that would otherwise be more expensive when compared to domestic staffing. There are always tradeoffs in terms of which functions make sense to port overseas. When a function such as systems architecture is outsourced, many CIO's feel uncomfortable and perceive that they may be losing control of a strategic function or a core competency of the organization, QA & Testing is a prime candidate for outsourcing as the function is considered rote and not perceived by the average IT professional as a career path to greater responsibility within the organization. At the same time, the strategic importance of the QA & Testing function continues to increase in the enterprise in terms of the overall IT budget and the cost of releasing a defective product to the market.
The main benefits of outsourced QA & Testing can be divided into two categories: quantitative and qualitative.
Current economic conditions have forced organizations to focus on the bottom line. Top line revenues continue to be under pressure and cost reduction will be one of the areas where business leaders will focus. Focusing on cost reductions only takes a company so far. The best and brightest organizations are focusing on new product development to assure that once the economy moves in the right direction they are poised to capitalize on new revenue opportunities. Based upon the statistics in the first paragraph, the cost of deploying a software product with significant defects has a staggering affect on both internal costs and marketplace perception. IT organizations that have their QA & Testing functions right-sized spend approximately 25% of the overall IT budget on QA & Testing. One of the main objectives of any outsourcing engagement is to reduce cost. Offshore outsourcing can bring experienced QA & Testers team to the table and save up to 75% of the overall QA & Testing budget. But the benefits don't stop simply at cost alone.
Having a third party perform the more mundane functions allows the organization to redirect resources toward new development projects that can positively impact bottom line revenue. Each stage of the Software Development Cycle (SDLC) requires a unique set of skills and competencies. What is one of the primary roles
The direct cost of quality in terms of staff time by itself is a compelling reason for considering a new business model for QA & Testing. More difficult to measure, though just as significant, is the lost revenue in terms of new business and current customer satisfaction that may have turned into increased revenue opportunities. Using an Offshore Outsourcing organization can reduce both direct staffing cost (by using less expensive resources overseas) and lost potential by assuring a higher quality product and ultimately more satisfied customers before the product is launched into the marketplace. Migration to a test driven lifecycle model with the goal of Independent Verification & Validation (IV&V) will give organizations that choose to focus on creating a culture of quality a competitive advantage in the marketplace.
The objective of using Offshore Outsourcing is based on price arbitrage where lower cost resources are used to perform functions that would otherwise be more expensive when compared to domestic staffing. There are always tradeoffs in terms of which functions make sense to port overseas. When a function such as systems architecture is outsourced, many CIO's feel uncomfortable and perceive that they may be losing control of a strategic function or a core competency of the organization, QA & Testing is a prime candidate for outsourcing as the function is considered rote and not perceived by the average IT professional as a career path to greater responsibility within the organization. At the same time, the strategic importance of the QA & Testing function continues to increase in the enterprise in terms of the overall IT budget and the cost of releasing a defective product to the market.
The main benefits of outsourced QA & Testing can be divided into two categories: quantitative and qualitative.
Quantities Benefits:
Reduced CostCurrent economic conditions have forced organizations to focus on the bottom line. Top line revenues continue to be under pressure and cost reduction will be one of the areas where business leaders will focus. Focusing on cost reductions only takes a company so far. The best and brightest organizations are focusing on new product development to assure that once the economy moves in the right direction they are poised to capitalize on new revenue opportunities. Based upon the statistics in the first paragraph, the cost of deploying a software product with significant defects has a staggering affect on both internal costs and marketplace perception. IT organizations that have their QA & Testing functions right-sized spend approximately 25% of the overall IT budget on QA & Testing. One of the main objectives of any outsourcing engagement is to reduce cost. Offshore outsourcing can bring experienced QA & Testers team to the table and save up to 75% of the overall QA & Testing budget. But the benefits don't stop simply at cost alone.
Having a third party perform the more mundane functions allows the organization to redirect resources toward new development projects that can positively impact bottom line revenue. Each stage of the Software Development Cycle (SDLC) requires a unique set of skills and competencies. What is one of the primary roles