Quality Assurance and ROI

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In the realm of software development Quality Assurance (QA) is the systematic approach to development procedures and processes which results in an end product that meets the specifications set out in the development plan.
Quality Assurance is not without cost.
Competitive companies have entire departments devoted entirely to QA.
Having an effective QA system in place creates a sense of reliability and confidence in customers.
They can trust defects will be eliminated before the final product is presented.
The cost of QA then is well justified.
Calculations from industry leaders indicate that the costs associated with building a product correctly the first time around are much less than the costs associated with fixing problems after delivery.
In many cases, the cost can be exponentially greater to fix mistakes after the fact.
A company stands to lose great sums of money if it does not implement some form of QA during the production process.
There are obviously the costs a company must undertake to correct problems once they are discovered.
Those costs can be calculated but the cost of future profits lost as a result of tarnished credibility is much more difficult to quantify.
According to Rex Black, president and principal consultant of RBCS, "A good (QA) team should find 85% or more of defects" saving the company in his estimation approximately $500,000 annually.
Ultimately QA is about improving a company's profitability, but the way that overall goal is accomplished is by planning, developing and testing the software at various stages to prevent bugs and the costs associated with repairing them.
Bad software, full of bugs, can cost a company an almost unlimited amount.
External costs such as lost sales, liability, refunds or recalls, and additional support staff to correct and support customers who are having problems all eat away at profitability.
Internal costs associated with a poor or nonexistent QA system include profits lost during delays to market and time wasted by development teams fixing bugs as they arise unexpectedly.
Implementing and closely following good QA standards can help avoid problems before they even arise in the first place.
Employing a detailed and functional Quality Assurance plan avoids these external and internal costs.
A company with a proven record of exceptional QA is often more inclined to develop cutting edge products, perhaps beating competitors to market.
This is extremely important to consider when determining profitability in all industries, but especially so in software development where technology is changing rapidly and developers must keep up with the industry's breakneck pace if they wish to stay relevant.
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