Products

Problems
we solve

We can help your business

Request a Free Demo / trial

Insights

Insights | From a different perspective
16 February, 2021

Are Test Budgets Falling? WQR Thinks They Are

Are Test Budgets Falling? WQR Thinks They Are

According to our friends at the World Quality Report (WQR), test budgets are falling. At least as a percentage of overall IT spend. But are they really? I’m not convinced.

Specifically, the WQR 2021 claims that over the last 5 years test budgets have fallen from 35% to 22%, as a percentage of overall IT budgets.

This is a 5-year period that has seen continued growth of tech, an explosion in online devices and activity – even your local takeaway has an integrated technology solution.

The WQR Figures Show A Significant Fall in Test Spend

If you look at the WQR numbers in a bit more detail, a relative decrease of 13% is even more significant than it initially appears.

A 13% fall in relative spend represents a 37% fall in actual testing spend

Assuming IT budgets have remained relatively static that is, and here’s why:

Let’s say your overall annual project budget is £1m

  • In 2015, testing was 35% of your £1m budget: 35% of £1m = £350k
  • In 2020, testing was 22% of your £1m budget: 22% of £1m = £220k
  • Over 5 years, testing spend has fallen by £130k (350k – 220k)
  • Therefore, testing spend has fallen by 37% (130k/350k) 

According to the WQR then, there has been a 37% fall in actual testing spend. 

These are startling figures and I just don’t buy it. Does this massive decrease in test spend ring true for you?

People Are The Biggest Cost

We know that in all IT projects, people are the biggest cost. Have IT teams grown massively in the last 5 years? And without any additional testers?  I have not seen any evidence of this, have you?

Alternatively, are there fewer testing jobs than there were? Are there loads of unemployed testers running around looking for work? I don’t think there are.

The WQR Numbers Do Not Represent Normal Companies

To understand these numbers a bit more I looked at the sample population – just who are being interviewed for this document? 

2 interesting facts instantly jumped out me…

  1. The WQR only interviewed 155 people from the UK. Even if they were all from different companies, that’s a fraction of the total UK market. There are over 300 banks in the UK alone, never mind other sectors.
  2. The WQR only samples companies with 1,000+ employees. In fact, 75% of those interviewed came from companies with 5,000+ employees. 41% came from companies with 10,000+ employees!

Perhaps the stated decease in test spend is realistic for these groups, but I seriously doubt it. And it’s certainly not representative of the companies I speak to.

Tech Has Never Been More Important

The UK is in the grip of the biggest economic recession in 300+ years, but even with this pressure we’re seeing growth in the software space – and lots of it in testing. Even non-IT folk like Fatima the ballerina are being persuaded to get tech jobs.

It’s also reasonable to state that IT has never been more important to brand reputation – nowadays a crash or system outage is a major news story. 

Surely then, the percentage spend on testing should be increasing. Decreasing testing spend now could be dangerous.

Reducing Test Spend Could be Dangerous! 

The WQR numbers just don’t stack up, not for most of us. Worse than that, they’re actually dangerous. They’re encouraging companies to spend less on testing. Is this sensible in a world where IT complexity, rate of change and the impact of software failure are all increasing?

If a stakeholder were to read the WQR, they might reasonably come away thinking they’re doing something wrong. They might use this as a catalyst to reduce spend on testing – as if it’s not squeezed enough anyway.

What Do You Think?

Have you seen a significant fall in the number of testers, or test spending? I’m interested to know what you’ve experienced.

It would be great to know what you see in your organisation. Do you share my concern, or have I got this wrong?

Get in touch directly, or post a comment below

Do you share my concern, or have I got this wrong?

Stephen Davis
by Stephen Davis

Stephen Davis is the founder of Calleo Software, a OpenText (formerly Micro Focus) Gold Partner. His passion is to help test professionals improve the efficiency and effectiveness of software testing.

To view Stephen's LinkedIn profile and connect 

Stephen Davis LinkedIn profile

16th February 2021
Video to Software Tests

A Testing Revolution? How to Turn Videos into Manual and Automated Test Cases

Imagine being able to record a user story and instantly turn it into manual and automated tests—how much time and effort would you save? Whether you’re preparing for SIT, UAT or streamlining regression testing, you can now generate manual and codeless automated test cases directly from video recordings, leveraging cutting-edge AI technology to streamline your testing processes.

Test Automation what's new

What’s New: Exciting Test Automation Tool Updates

As great as OpenText is at software development, it’s not always the best at keeping people informed about changes. So, today, I’m sharing a few recent updates to the OpenText automation tools. These are just a tiny sample of recently implemented changes. They focus on cloud capabilities, AI-powered object detection, codeless testing, and streamlined workflows that make test automation more accessible and efficient than ever.

Software Testing in 2030

Software Testing in 2030: 4 Ways QA Will Change

Over the next five years, software and software testing are set to evolve at a rate we’ve never seen. In fact, it has already started. Over the last few years, everyone remotely involved in tech has witnessed the constant change in the way things are done. This seemingly non-stop innovation has been driven by emerging technologies, shifting development paradigms, and businesses reevaluating their priorities… and is set to accelerate.

Software Testers v Rogue AI

Software Testers: Humanity’s Best Chance Against Rogue AI

In the race to protect us against rogue AI, our best defence might not be scientists or politicians, but the often-overlooked heroes of the tech world: software testers. As AI systems increasingly mediate healthcare, criminal justice, and military decisions, this unlikely profession could hold the key to preventing existential catastrophe.

4 testing breakthroughs

Software Testing AI: 4 Breakthroughs You Can’t Ignore in 2025

It’s 2025 and software testing AI can no longer be ignored. AI innovations in software testing can deliver unprecedented efficiency gains and bridge the gap between manual and automated workflows. This article contains four software testing AI breakthroughs you can’t ignore in 2025.

Remote Software Testing

Remote Testing Teams: 4 Strategies to Avoid Collaboration Disaster

It’s been years since the pandemic. Still, many companies I speak to have struggled to adapt to changing practices and have failed to implement effective working habits. Unfortunately, you can’t just continue as if nothing has changed—this approach just won’t cut it anymore. In this week’s insight, I provide four actionable approaches that I have picked up from the many successful testing projects I talk to. These easy fixes will help you prevent collaboration disasters in your remote testing teams.

Top Software Lists

Exposed Why ‘Top Software’ Lists Can’t Be Trusted!

You see them everywhere. Top 10 this, top 20 that. We have all searched for lists that rank products. Whether cars, phones, software, or anything else. But how trustworthy are the ‘top software’ lists on the internet?

How to Choose A Test Management Tool

How to Choose The Right Test Management Tool

Test management tools ensure efficient, effective, and auditable testing processes. When choosing an enterprise-level test management solution, it’s essential to use a proven and trusted solution.

Insights

Search

Related Articles

To get other software testing insights, like this, direct to you inbox join the Calleo mailing list.

You can, of course, unsubscribe 

at any time!

By signing up you consent to receiving regular emails from Calleo with updates, tips and ideas on software testing along with the occasional promotion for software testing products. You can, of course, unsubscribe at any time. Click here for the privacy policy.

Sign up to receive the latest, Software Testing Insights, news and to join the Calleo mailing list.

You can, of course, unsubscribe at any time!

By signing up you consent to receiving regular emails from Calleo with updates, tips and ideas on software testing along with the occasional promotion for software testing products. You can, of course, unsubscribe at any time. Click here for the privacy policy.