How To Calculate Return on Investment in Automation?

ROI for Automation
ROI for Automation

Why Do Firms Require Unbiased Software program QA Solutions?

Computer software development providers have relied on in-dwelling QA groups for decades. Even though some built it correctly, most of them did not. Application corporations with in-residence QA knowledge a popular problem of keeping the techniques and skills of their crew in order to reach the envisioned quality. Here, an external QA companies company delivers the advantages of highly developed screening services and teams of testing gurus. Let’ talk about some of the essential pros of partnering with dedicated screening assistance companies:

Means To Meet Rigorous Deadlines

If high-quality assurance fails, the program encounters a downfall. Program progress teams have to do the job less than the regular strain of conference the deadlines. This sort of situations was often direct to inefficient tests and high-quality assurance. Specialized QA groups have the necessary working experience in handling these deadlines, making it possible for the Dev workforce to concentration their exertion on the growth of the task.


Precision is not optional when it comes to excellent assurance. These days, progress corporations desire the DevOps technique for screening and QA, which means in-house groups combine program advancement and tests as a single course of action. On the other hand, program developers generally uncover on their own in sizzling drinking water when they have to uncover the bugs and problems in their code construction. There is generally the chance of a biased bug tracking. On the other hand, independent software package QA solutions make sure a truthful strategy, which unquestionably sales opportunities to a higher-good quality product.

Lessened Endeavours

By outsourcing the approach of top quality assurance, application developers can get rid of the want to invest in applications and other means for testing and QA. On-demand testing groups will save a significant sum of time and income for a computer software enhancement organization, which can be used for investigation and enhancement.

Thorough Useful resource For Testing

An independent program QA expert services supplier offers an entire range of quality assurance and screening solutions. These vendors offer a detailed roadmap for builders about the instruments and processes to be utilized for screening and quality assurance, making it simpler for the Dev staff to keep track of the bugs and make necessary updates. So, it is strongly recommended that software program improvement organizations should attain out to qualified QA products and services providers for assistance as quickly as probable to uncover the bugs and mistakes at the earliest.


Testing and quality assurance is a recurring procedure for application enhancement providers. While testing is an integral aspect of the enhancement lifecycle, it is not practical to have a dedicated in-household workforce for the occupation. In this kind of circumstances, an expert testing facility permits the firms to obtain high-quality benchmarks and ensure the predicted efficiencies.

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Why Is Take a look at Automation So Bloody High priced?

“We can not automate almost everything. Exam automation charges far too significantly.” We hear this all the time.

In today’ day and age, when your SDLC has become agile, why do you nevertheless panic automating it all, across the life cycle and with just about every release?

You have to go through guides and vital ideas to make take a look at automation an achievement. But, you sill wander in the darkish to look for a solution to the greatest dilemma- “why is it so bloody expensive?”

So, we determined to area reasons that continue to add to the price tag of automation. These reasons act as deleters in employing automation across the complete testing life cycle. And think me, they do!

1. Specialized expertise does not occur that effortless and undoubtedly not inexpensive.

It does not subject regardless of whether you are a little or massive workforce. Exam automation calls for scripting. Scripting cannot be averted. It necessitates specialists who know the native language of the device to make it operate. It calls for programmers not testers. Often much more than anticipated, great programmers occur at a price. This boosts the price to automate. Do not forget to involve the prices of employing and retaining these resources. And of training course crew burnout and attrition. Envision what will stroll out of your office! Men and women, abilities, domain knowledge, and what you have crafted to until date.

2. Finding the most bang on your buck.

Have you at any time professional it? I know this is something you can not escape. Acquiring automation software licenses. Just about every license will price you an arm and a leg. But you can not aid it. Having said that, what you can aid, is improve just about every license. Ideally, you ought to be running the automation tool 24X7 to maximize instrument productivity.

But, then how would you compose the code to automate examination scripts, when you know your automation instrument can do 1 factor at a time: possibly it can execute or it can make automatic test suites. End-users of open up resource device like Selenium do not have this grievance. But some others do.

At present, you have numerous licenses to suffice this want of yours. But you would concur with me that this is not an optimum return on your expenditure on them.

3. Time is income infant!

Examination automation through automation applications requires scripting. To generate scripts, check, and make them get the job done requires time. We are conversing thinking of time here. And time means far more cost, virtually.

Remember to consider into thing to consider that how immediately you mechanically and how swiftly your examination will consequence in how swiftly you can go to market.

4. Servicing is an important difficulty in test automation.

Enable’ discuss exam script maintenance. With improvements in just about every new release, your automation suite needs to also transform. Will you go back to the drawing board and rewrite scripts? Keep in mind the more rapidly you update you are now automatic take a look at suites the more rapidly you strike the sector.

These are all expenses and options you cannot condone. I am positive your CFO is keeping an eye on them. Faster or later on he will dilemma you. As your test suite increases, you will experience excessive upkeep stress – which will direct to the reduction of far more time and much more cash.

5. Time to establish and split dependencies.

At the moment you have a company analyst / SME, guide tester, and an automation specialist as your stakeholders, each serving an essential have to have, in your testing life cycle.

A business enterprise analyst is intensely dependent on automation expert to bring about new small business rules and variations in them into automatic test scenarios via scripting. This partnership, as we all know is not that clean.

It has its share of interaction gaps, backlogs – ensuing in much more time to automate. And as we all know, much more time implies far more dollars and missing options.

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You now know the main causes that make take a look at automation so damn high-priced. With this insight, you can adjust a single or more than just one parameter in the test automation equation to make it scalable and successful.

I am confident by now you know the response. But, just to give you the trace, the answer lies in how fast and effortless you can make test automation. How uncomplicated it is for your screening staff to create test automation.

Return on Investment:

As per wiki- Return on Investment is a benefit to an investor resulting from an investment of some resource. A high ROI means that the investment gains significantly in favor of the investor.
This post talks about different direct and indirect techniques to get better ROI. Calculating ROI for automation is a very subjective discussion. I tried to come up with several direct and indirect factors that affect ROI.

But remember ROI calculation is notoriously hard to quantify.
Software testing via automation is a process or a series of processes, designed to make sure computer code does what it was designed to do and that it does not do anything unintended. Software code should be predictable and consistent, offering no surprise to the end-user.
While testing a set of test cases that satisfies the programming, does not guarantee that all possible errors would be found.

In an ideal world, testers want to test everything, every permutation of a program. Practically, this is impossible to cover all test cases. It is impossible too.

ROI another misconception:

Another misconception around automation is going towards automation will give direct benefit and ROI quickly. But this is a false statement. Automation may not give immediate value to money. But it may help you to achieve a lot of tangible and intangible benefits. It not only offers support to the scrum team but also provides a helping hand to the build team, developer team and finally regression testers. That is why it is very tough to get its ROI so easily.

A simple calculation is ROI=net Income/Investment.
ROI=(gain from investment-cost of investment)/cost of investment
ROI=(revenue-cost of goods sold)/cost of goods sold

As per best practice, there are two different ways we can calculate ROI.

  1. Efficient ROI calculation
  2. Risk estimation and reduction of ROI calculation

A method to calculate Cost Automation vs Manual

Sl NoSymbolItem#Cost# in hours
1ADescribe the testcase2
2BExecution manually2
3CDesign the test cases10
5EMaintain one manual test.1
6FMaintain one automation test.2

Let’s see other parameters too..

Sl NoSymbolItem#Number
1LNumber of releases/year12
2TNumber of Cycle1


Cost per test case=Test case number X [Described test+Releases X (Execution+Maintainance cost)]

Cost per manual test case=T X(A+L X (B+F))

Cost per automated test case= T X [(A+C)+L X (E+G)]

Automation is a huge investment- ROI

As automation needs huge investment by purchasing modern commercial tools, hiring technical automation, version control tools for scripts, Test management tool. So as a manager or part of management, one should always calculate the ROI.

In a simple term ROI in automation=(cost of automation-cost of manual)/total cost
In most of the organizations, automation cost is calculated as the cost to procure the tool. Many a time, I keep hearing that the cost of selenium is zero, hence the automation cost should be very minimal.
Automation executes the test faster than manual QA. This statement is the tip of the iceberg.


The actual story is far bigger than that. Implementation time of a script, execution monitoring, automation failure analysis,re-execution of the failed cases are few hidden factors for automation.

These are additional costs to automation but seldom factored when calculating the ROI. Benefits from automation and ROI are two different things. They should not be used as interchangeable terms. Benefits are usefulness, but ROI talks about the price.
What is the cost of automation:

Factors affecting overall testing:

  1. The volume of test cases that can be automated directly without any technical or functional issues-Test coverage
  2. Number of releases in a year and number of cycle per year
  3. Number of platform supported(Windows/Linux/Mac) vs number of browsers(IE,Chrome,Firefox,Opera etc) supported.
  4. Cost of manual testing
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Factors affecting automation testing:

  1. Cost of the tool(Selenium, protractor, etc are opensource whereas UFT, Test complete, TOSCA are costly)
  2. Setup cost or building initial cost(framework development, low level or high-level component or business and generic function building)
  3. Cost of automation testing itself.

Few points to keep your ROI high:

    • Don’t invest too much effort in only designing automation without testing it in a real scenario.
    • A well-planned project is likely to go near success. So for a project to success, prepare a solid plan. A plan is nothing but a guide.
    • All plans should be agile in nature
    • Team building is an important aspect of automation, especially when they are geographically divided. Rather experts, if a lot of interested people in automation will give you better result.also beware of the knowledge walking out of the door like contractors. it is better to involve the regular permanent employees rather vendors.
    • There is no such tool which is perfect for testing the underlying application. But all the tools that are available in market needs someway or other improvement or tailoring to suit our need. So choose a which is cost-effective and suites most of our need during automation. We should not go for the very costly sophisticated tool or should not go for free tools. Actually, the main agenda is if you don’t spend anything, you will get nothing.
    • skilled lobar cost or making them skilled cost–if you do not have skilled lobar it is very tough to get successful automation. It is always better to choose a tool, where you have a greater knowledge base. A well managed, skilled knowledge team will surely give success and contribute ROI.
Few other factors for lowering the ROI:

A good training saves lots of research time. Which is termed as nonproductive hours in terms of management? Reinventing the wheel will always lower the ROI.

  • Architecture cost-If you don’t have one, automation is bound to fail in the long run. A good architecture (technical)is important for framework development. This gives flexibility and adaptability in the longer run. Minimizing the cost can only be achieved if automation reaches that height.
  • Constructive use of time is always important between testing cycle. Always dream big and go for it as long as time permits. Slowly, we can get more out of automation. Self-motivation is a quality that we need to work on this.
  • A creative way to resolve issue reduces the overhead which interns a cost to the automation process. We must nurse the issue of resolving culture so that the overhead cost reduces that interns improve ROI.
  • Organizational support is needed to get significant automation initiative started. Be sure we are choosing a champion who will stay on task and be the driving force behind automation initiatives.
ROI Calculation

let us come to the calculation part:
Manual testing can be dome maximum of 8 hours/day whereas automation can run 24 hours. (This is not dreaming, some of the organization has already reached to that height) but the majority falls between 12 hours to 20 hours of execution.
Now cost for manual testing=(total number of test cases execution effort/total testers effort)* rates of manual tester
total number of test cases execution effort=Data preparation+Execution+Analysis (in hours)
total tester effort=Total test engineers*8 (in hrs)
Now automation investment.

Note: Automation should not only include time savings but also see the coverage and test engineers reduction. Automation goal is not to replace testers but to enable them to find out more bugs in more efficient ways.



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