Poor Quality Assurance Costs More than You Think

Summary

Software failures can cost hundreds of millions of dollars, destroy customer trust, and derail digital transformation. Quality assurance (QA) identifies hidden risks early, securing compliance and accelerating delivery without compromising reliability. For any business leader responsible for growth, customer experience or cost control, QA must be a strategic investment, not a technical afterthought.

Why quality assurance is a business risk, not just a technical one

In 1996, a space rocket exploded because a software component reused from its predecessor wasn’t adequately tested under new conditions, causing a $370 million loss. In 2012, a financial services firm lost $440 million in just 45 minutes, because a trading algorithm malfunctioned due to insufficient testing. In 2023, millions of customers of an Australian telecoms provider could not access internet or use their phones for 14 hours due to a software misconfiguration. Software glitches continue to make headlines (remember the Crowdstrike update gone wrong?), costing enterprises large amounts of money and destroying their reputation. The pattern is consistent: inadequate QA testing turns software into a liability rather than an asset. 

As the examples above illustrate, software is at the heart of organizations’ successes – and of their failures. With digitization becoming a priority, many organizations have effectively turned into software companies, relying on digital systems to drive growth, streamline operations and deliver exceptional customer experiences. Quality assurance plays a pivotal role in de-risking these initiatives by preventing cost overruns, protecting reputations, ensuring compliance, and accelerating speed-to-market—all critical for business leaders tasked with delivering tangible results. While often seen as purely a technical matter, QA has such a profound business impact that it should concern anyone who is tasked with growing the business, enhancing customer experience or decreasing operating costs.

How does quality assurance de-risk your digital transformation?

1. Automated Testing and Impact Analysis Reduce Cost Overruns 

By targeting only the code impacted by changes, organizations can avoid redundant testing, saving time and resources. It helps address inefficiencies in software testing that create cost overruns, one of the major risks in digital transformation projects. With IT budgets under increasing scrutiny, QA enhances efficiency by introducing automation and smart testing strategies like impact analysis. Additionally, modern tools provide test coverage analysis, ensuring the highest-risk coverage with minimal effort. Test automation delivers a better Return on Investment (ROI) than manual testing, even when manual testing is outsourced.

2. QA Prevents Software Failures that Erode Customer Trust

Software failures that reach production harm customer trust in ways that are difficult and costly to rebuild. Events that lead to outages or a loss of critical functionalities not only disrupt business operations but frustrate customers and stakeholders. QA plays a crucial role in identifying and mitigating these risks early in the development lifecycle. By preventing high-profile failures, organizations protect their reputation and maintain customer confidence, which is vital for long-term success.

3. Regulated Programmes Meet Compliance Requirements Before Go-Live

Digital transformation programmes in regulated industries must meet compliance requirements that QA frameworks are specifically designed to address. With increasing regulatory scrutiny, especially in sectors like finance and healthcare, QA ensures that systems adhere to industry and governmental standards. In scenarios involving AI implementations, for example, QA frameworks help organizations test for ethical compliance and accuracy in decision-making processes. By aligning with compliance, QA mitigates the risk of legal repercussions and fines, which can derail transformation efforts.

4. Continuous Testing Accelerates Time-to-Market Without Compromising Software Reliability

According to research institute Gartner, growth is the top priority for CEOs and other members of the C-suite. Speed to market is often a competitive differentiator in digital transformations. QA helps accelerate timelines without compromising quality by enabling continuous testing and integration. This allows organizations to roll out new functionalities faster, meet market demands, and seize growth opportunities. Whether launching customer-facing applications or internal ERP systems, robust QA leads to reliable systems that  boost user satisfaction, business performance, and customer retention. Remember: any delay in rolling out a new application or feature to (potential) customers may lead to a loss of revenue.

5. Gap Analysis Identifies Testing Weaknesses Before They Become Production Failures

Gap analysis provides organizations with valuable insights that go beyond simply detecting defects. It helps identify areas where testing coverage is insufficient, pinpointing vulnerabilities that may otherwise go unnoticed. These insights enable decision-makers to prioritise resources effectively and ensure that critical business processes are safeguarded. Gap analysis also fosters a better understanding of system dependencies and potential risks, thereby providing a strategic advantage in planning and executing digital transformation initiatives.

TTC Global as a Trusted Advisor

TTC Global, a truly global software quality engineering consultancy with projects spanning the Americas, Europe, the Middle East, and Asia-Pacific, has the capability to bring world-class, highly specialised testing expertise to local markets. TTC Global excels in helping organizations achieve these advantages by embedding quality assurance into every phase of the transformation journey. With a strong focus on early intervention, TTC Global ensures that testing is integrated into the initial stages of planning and development. This “shift-left,” proactive approach identifies potential issues before they escalate, enabling businesses to make informed decisions and avoid costly rework or delays. By leveraging services such as our proprietary Quality Maturity Assessment, AI Advisory Services, Data Management, and Accessibility Consulting, we empower organisations to modernise processes, implement advanced technologies, and optimise data ecosystems.

Our tailored solutions address critical aspects of digital transformation, including seamless system integration, inclusive design, and strategic data utilisation, helping organisations achieve faster delivery cycles, improved quality and enhanced agility. C-Level Consulting further empowers executive teams to align technology strategies with broader organisational goals, embedding quality and innovation into the core of their operations. By fostering continuous improvement and enabling adaptability to evolving demands, we provide the clarity, tools and strategic support necessary for a successful digital transformation journey.

TTC Global’s Deep Partnership Model Aligns Objectives and Solutions

Our expertise spans the entire application landscape, covering a wide array of technologies and platforms to meet the diverse needs of modern organisations. We work with leading ERP providers such as SAP, Oracle, Microsoft and Infor, as well as COTS applications like Charles River, Salesforce, ServiceNow and Workday. Additionally, we support bespoke and mobile application solutions. Our capabilities also include leveraging quality assurance frameworks and platforms (Tricentis, Leapwork, open source, etc.), ensuring flexibility and innovation in addressing unique challenges.

No matter what your organisation’s technology stack or past choices, TTC Global has the expertise to deliver comprehensive quality assurance solutions. From enterprise-scale systems to niche applications, we provide end-to-end support, ensuring every aspect of your digital ecosystem operates seamlessly. This broad capability allows us to adapt to any environment, delivering tailored solutions that empower organisations to achieve their transformation goals with confidence. With TTC Global as your partner, you can rely on a team that prioritises excellence, adaptability and strategic insight, enabling your business to thrive in an increasingly complex technological landscape.

Frequently Asked Questions

What are the costs of poor software quality?

Poor software quality produces costs across three categories: direct remediation, operational disruption and reputational damage. The 1996 Ariane 5 rocket failure caused a $370 million loss; the 2012 Knight Capital Group trading algorithm malfunction cost $440 million in 45 minutes. Defects that reach production consistently cost more to fix than defects caught during testing.

How does quality engineering reduce SAP go-live risk?

Quality engineering reduces SAP go-live risk by embedding validation earlier in the delivery lifecycle, directing testing effort toward the highest-risk business processes and replacing broad coverage approaches with risk-based automation. Forrester research found that organisations with a structured SAP quality engineering approach reduce production errors by up to 93% and hypercare costs by up to 90%.

What percentage of SAP projects go over budget or schedule?

Horváth research drawing on responses from over 200 executives found that 90% of SAP S/4HANA migrations exceed their original schedule and more than 60% report deviations in budget, schedule and result quality. In a quarter of transformed organisations the budget was heavily exceeded.

What is the financial cost of a failed or delayed SAP go-live?

The financial cost of a failed or delayed SAP go-live includes extended hypercare, emergency remediation, productivity loss and operational disruption. In documented cases, organisations have lost millions through SAP systems unable to process invoices or payments for weeks after go-live, with production lines halted for months in the most severe instances. Forrester research found that hypercare costs alone can decrease by up to 90% when quality engineering is embedded into delivery from the outset.