# Thread: Calculating ROI of implementing Automated Testing

1. ## Calculating ROI of implementing Automated Testing

Im currently working in a CMMI Level 3 company and we have in the past done testing manually. However as our clients and projects / products are increasing day by day, its hard to invest so much time in the testing activities and finding a good resource is a rarity here.

We are planing on implemnting Automated testing but before we do that we need to justify the ROI to the upper management. Is there any formula, technique, etc. through which we can calculate the ROI of implementing Automated testing. We do not need to calculate that for a specific tool but for the whole Generic process.

We also plan on hiring and training a few resources who will learn and perform automated testing and than teach to others. Their hiring cost also needs to be justified.

2. ## Re: Calculating ROI of implementing Automated Testing

Hashim,
Try this link and you have a calculator online

http://www.conversive.com/html/resources_roi.php

3. ## Re: Calculating ROI of implementing Automated Testing

Hashim,

I would suggest that you do an advanced search within the automated testing section of this forum using terms such as 'ROI', 'Cost', 'Benefit' and 'Failure'. There have been a number of intersting discussions on this subject, such as

http://www.qaforums.com/ultimatebb.p...;f=34;t=003500

IMHO, there is no single formula for this, as costs and returns are very heavily dependent on many intangible items such as the skill set of the automation team, the management approach, etc...

Best regards,

Shane

4. ## Re: Calculating ROI of implementing Automated Testing

If you are working with a Vendor they may have a template, spreadsheet or something that they can share with you. In the past I have had assistance from vendors with this and after all it is to their advantage to prove ROI so that they can get the sale.

At the very least it could be a starting point.

5. ## Re: Calculating ROI of implementing Automated Testing

The bright thing about bringing in the vendor is that it becomes their problem to live up to the expectation that they set with management.

You may be in a level 3 shop, but I'm pretty sure that CYA doesn't go away.

Don't make promises or claims that you personally cannot keep - Unless you work for the governement.

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