Software quality assurance economics

  • Authors:

  • Borislav Nikolik

  • Affiliations:

  • Vidak Quality, 9226 NW Bartholomew Dr., Portland, OR 97229, United States

  • Venue:
  • Information and Software Technology
  • Year:
  • 2012

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Abstract

Context: Software companies invest in quality assurance in order to lower software development and maintenance cost, and to increase revenue and profit margins. To contribute to increase of net income, a quality assurance organization has to consider cost and value of the testware involved in assuring quality of software artifacts, such as requirements, specifications, designs, and code. Objective: This paper proposes a set of economic metrics: testware return on investment, inflation, and cost and value sensitivity to artifact changes and time passage. The paper proposes a set of guidelines on lowering testware cost, on increasing value, on maximizing return on investment, and on when to release. Method: This paper presents an industrial case study data on the relation between test case cost and value, and on cost and value sensitivity to time passage and artifact changes. Results: The industrial case study showed return on investment on test cases of up to 200%, deflation of up to -2% per month, undesirable economic effects, such as test case cost outpacing test case value and rapid test case value depreciation based on time passage. Conclusion: A viable QA organization should measure and improve test case return on investment, inflation, and cost and value sensitivity to artifact changes and time passage.