Why Testing Secures the Profitability of Your Software Investment

Venture capital investments in digital financial service companies are booming! According to research by CB Insights, investment deals in the financial technology industry have seen a tremendous growth of 75% within the past five years[1]. This growth is largely attributed to the widespread adoption of mobile technologies and cloud computing, creating new markets for services and digital products.

The surest investments for your portfolio are those that can offer the greatest returns at the lowest risk. Although technology has seen considerable innovations in recent years, the importance of software testing cannot be overlooked. A recent study by PM Solutions found that unclear system requirements and unmanaged risks led to 37% of IT projects failing.[2].

Having poor requirements can lead to an array of issues, from misaligned functional requirements to corrupted source code. Many of these issues can be avoided with diligent software testing.

Software Testing Protects Your Investment

Like most products and services, profitability on the software doesn’t occur until after deployment into the market. This can put pressure on investors to accelerate or skip phases of the testing process, jeopardizing the functionality of the software.

Software development is a process that requires the expertise of a skilled engineering team. This creates many moving parts that come together to create a fully functional software product.

As software development teams move deeper into development, errors and glitches may remain hidden within layers of coding until the software is active. These glitches are discovered in the testing phases of development, solidifying the progress made by the development team. This effect of accumulating errors and addressing them as development progresses is otherwise known as paying back your technical debt[3].

The Weight of Technical Debt

Performing software tests ensures that the product performs as intended by referring to the system requirement specifications. Technical debt, like other debts, isn’t inherently bad if what you gain is worth more than what you owe. If testing is performed infrequently, then the errors become larger as functional components are built on top of comprised programming. Similar to collecting interest on a financial debt, it will take more time and effort to discover and fix these growing errors if addressed later.

Highly regulated industries like finance have stringent rules on the security measures and how data is stored. Failure to meet the intended software goals or regulation requirements can lead to delays in deployment and potential fines. For products and services, this can be disastrous to the profitability of a product or service as time and money are spent fixing a preventable cost.

Agile Methodologies Were Created to Mitigate Risks

Modern software development teams utilize Agile methodologies because it allows teams to assess their progress and direction of development through an iterative work cycle. A major advantage to Agile methodologies is having open collaboration between the software engineers and their clients. This results in the incremental completion of the software in order to effectively receive feedback on the latest features and software version.

This “inspect-and-adapt” method to software development prioritizes managing the project’s technical debt, significantly reducing the amount of glitches and errors found in its programming. The software development team is also gathering software requirements as they go, resulting in the development of the most market-ready software possible.

Testing the quality of your software during development is the best method of gaining the most return on investment. Software development teams that practice Agile methodologies integrate testing within an iterative process. This ensures that software is being built as intended with minimal glitches, leading to a secure product that is ready for the market.

At Tiempo, we are making the business of software development easier and more affordable with a unique combination of a nearshore business model, agile methodology, and advanced talent management. Our Development teams engineer powerful technologies that align with the goals and strategies of our customers for both their internal and public-facing development initiatives.

The Tiempo Quality System is the agile product lifecycle management framework that makes all of this possible and supports companies in launching software releases sooner without draining important resources. To learn more about Tiempo Development’s commitment to excellent software development, download our Annexus Case Study here. Be sure to visit www.tiempodev.com or contact Tiempo Development.

[1] Matthew W. “Benchmarking Corporate Venture Capital” CB Insights. https://www.cbinsights.com/research-benchmarking-corporate-venture-capital

[2] Michael K. “Why 37 percent of projects fail”. ZD Net. http://www.zdnet.com/article/cio-analysis-why-37-percent-of-projects-fail/

[3] Martin F. “Technical Debt”. Thought Works. http://martinfowler.com/bliki/TechnicalDebt.html

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