The price of everything, and the value of nothing…
It was Oscar Wilde who said that a cynic is someone who knows the price of everything, and the value of nothing. How does this apply to the world of IT where low cost offshore models have come to dominate?
The low day rates offered by offshore providers are certainly attractive. Unfortunately, these rates do not guarantee you an overall lower testing cost. An inexperienced, low skilled test team, although cheap on a daily basis, can very quickly end up costing an organization a lot more through delays, missed opportunities, defects and lack of focus.
The key for any CIO, to create value through testing, is to focus on and understand the Total Cost of Testing. And in order to do this, they have to realize that the lowest day rate is very unlikely to deliver true value.
But how do you know if you are getting value? Below, if you are experiencing any of these signs, it’s a good indicator that your ‘Total Cost of Testing’ is in fact out of control:
- High proportion of project costs in testing
- High level of SME input/support required
- Cost of defects found in production environment
- Defects found late on in SDLC
- Long testing cycles delaying delivery of business benefits
Although Experior utilize highly skilled SAP domain experts we find that we are more cost effective than competitors offering a lower day rate. Using our skills, knowledge, and experience we are able to work quicker and smarter, with a high degree of accuracy and focus on providing greater value more cost effectively.
Our risk-based methodology is dynamic and relies on input from both the business and project teams. This allows us to streamline testing and concentrate efforts on what matters most – outcomes. Our methodology and approach, although well-defined, further tailored to achieve the best fit with each customer. This ensures that clients receive a service best suited to their goals and objectives. We aren’t your average testing team that will run vast amounts of low value tests. We provide a custom service that allows us to help work with clients to manage their testing according to risk and other factors.
For example, a large retailer was recently embarking on a significant investment in their IT systems and contacted Experior to take on ownership of all their testing activities from their incumbent offshore provider. In the first year, although the retailer doubled their overall spend on IT, spend on testing was reduced. The percentage of spend on testing went from 29% of their agenda budget to 11%. In addition, testing had been supplemented by significant time from the retailer’s functional consultants (over 800 days per year). By using testers with domain expertise Experior reduced that to less than 200 days, saving an additional £750,000 and freeing up the functional consultants to deliver more business change. This proves the value of testing, if you focus on the ‘total cost of testing’ and not just cheap day rates! If you want to know more, do get in touch…
Originally posted May 6, 2016, by Kishan Maisuria