Test Automation –
Most organizations are aware that test automation brings benefits. It is important to quantify these benefits to understand if your efforts are on the right track or you need to make some changes to leverage its full potential. However, calculating the ROI of test automation may not be a simple or straight forward calculation because automated testing improves the profitability in three ways. Cost is the most obvious parameter but significant improvements in speed and quality also add to the overall efficiency and savings that a company makes.
Our test automation ROI calculator helps you quantify and measure the total return on your investment on test automation when compared with manual testing in terms of –
Test faster, often, and more with test automation
Increase product quality by 25%
Reduce defect leakages and increase test coverage
Test Automation – ROI Calculator
ROI - First Year
Here is your ROI for the first year with test automation. Due to initial investment in test automation tools and resources, you can see that the cost in the first quarter is significant. However, from Quarter 2 onward, it is projected that you will start getting the benefits of investing in test automation.
This is calculated based on 3 parameters – Speed, Quality, and Cost. For detailed breakup, check out each tab.
While comparing manual testing and test automation, the major benefit for test automation is the test execution speed. Manual testers can work 8 hours a day and execute test cases manually. Whereas test automation tools can practically work 24 hours and execute test cases automatically. You can run a significantly large number of test cases in a short time. This results in improvement in time and cost for go-to-market.
The earlier you find a defect, the easier, cheaper, and quicker it is to fix it. Test automation enables instant detection and remediation leading to a tighter feedback loop. Teams can set up automation execution to run as soon as the code is ready. So practically, you are investing less time on testing while increasing your test coverage substantially. The key benefit of this speed is not only faster readiness of your product but also a high-quality output with fewer bugs in production.
It has been proven that product quality increases by 25% when you align test automation with the right type of testing. Test automation helps minimize defect leakages from start to finish in the software development cycle. It also reduces the risks of manual errors and oversights. It is easy to miss critical bugs during manual testing phases only to find them in the final product review at the customer end. With test automation, you can discover bugs in the early stage of development where they are easier and cheaper to fix. Also, test automation increases test coverage as testing can be done frequently.
As shown in the calculation below, test automation looks costlier than manual testing until you achieve the breakeven point. This is mainly because of 2 things –
- Automation engineers are costlier than manual testers (although less automation engineers are required in comparison to manual testers)
- Investment in automation tools adds up to the test automation infrastructure costs
However, it is important to note that the high infrastructure cost is a one-time investment which is reflected in Quarter 1. But from Quarter 2 onward test automation starts becoming cheaper and the more viable option in the longer run.
Factors that make test automation more cost efficient include defect leakages and the scope of test coverage. When you factor in these benefits, manual testing is certainly the more expensive choice in the long run.
From Quarter 2 onwards, the automation tool implements test execution on its own. Your investment in automation in terms of test execution and human resources reduces considerably. The savings are not only monetary but also in terms of time and effort required to release a successful product.