20% Cost Savings on Software Testing: A Success Story from Germany
Make it good, cheap and fast – and you can choose two out of the three. Sound familiar? Normally an impossible task, but – at least in software testing – we’ve managed to do it.
Many IT managers today find themselves in a similar situation: having to cut costs while development must go on. We all know the classic solutions: find a way to do it with fewer people, find cheaper suppliers, or change the junior-to-senior ratio, for example. But there are other ways.
We have certainly found one. We started working with a client in Germany on a model where the new model resulted in a cost saving of more than 20% for them. All this in a solution that was more of a win-win situation for both of us, even if it meant some compromises and extra work for us.
The Challenge…
But let’s start from the beginning: What was the starting point?
- We were providing 8-10 testers on a continuous basis as external resources for our client in Germany
- The development required flexible availability of testers, and the complexity of the systems always required testers already familiar with the systems
- The classic solution to this situation was to order and book a team of testers on a continuous basis, which perfectly met the needs of the projects
However, it was an ongoing challenge for the client to ensure that all testers were constantly 100 % utilized in this model. So the client asked us to make a reduction in testing costs, which of course had to be solved without compromising testing quality!
…and the Way We Solved It
When the need arose, we worked with the client to understand the situation and find the right solution. Obviously, this meant a few rounds of professional and business discussions, as we had to develop a model that neither the client nor we had worked on before. In the new flexible model, we provide a pool of resources that allows us to allocate resources in a flexible way in response to demand.
We work together as follows:
- In advance, the client prepares a plan of the expected releases and their expected resource requirements. This allows us to anticipate demand several months in advance, so that we can plan capacity accordingly.
- Dynamically, we provide specialists only when the releases require, and we dispose of these capacities the rest of the time.
- Of course, releases may change on the fly, and we try to adapt as much as possible to changes in releases as they happen.
- Proper planning allows us to tie up testers on our other projects so that they can be available to the customer again at the appropriate times.
First Impressions?
First, what has the customer gained from all this?
- More than 20% savings in testing costs per year
- Testing capacity exactly when required
- No unused working time or wasted cost
- Flexibility to plan their testing needs
- Jointly managed testing team to best retain existing system knowledge and expertise on projects
Overall, this kind of resource commitment results in more planning, management and somewhat lower efficiency for us. On the other hand, we feel it is a great achievement that we have found a solution that works for both sides, that has further strengthened the relationship and has been working effectively for some time.
Of course, this approach is not applicable to all companies in the same way, but it’s an experience worth sharing. If you have experienced a similar challenge, why not talk about it?