Software Testing: Reduce Risk and Cost by Testing the Right Way

Proper software testing reduces risk, lowers defect costs, and improves release predictability. Learn why early testing is the most effective economic lever and how organizations make software quality controllable.

Testing software properly means identifying risks early, keeping costs under control, and building trust in digital products. High-quality, secure, and reliable software systems are created only through consistent and early testing across the entire software development lifecycle.

Many organizations invest substantial budgets in software development—only to lose far more later because defects are detected too late and must be fixed under pressure. The decisive lever is not individual tools, but solid testing fundamentals and the right timing of testing activities. The earlier software is tested in the development process, the greater the economic benefit for your organization. This article provides an overview of the key aspects of effective software testing throughout the development lifecycle.

Your key benefits at a glance

1. Significantly reduce defect costs by identifying issues early—before they reach production.
2. Improve release predictability by making quality measurable and controllable through targeted testing.
3. Protect revenue and reputation by preventing faulty software from reaching customers.

Why Poor Software Testing Costs Your Business Money

Late or unstructured testing almost always results in higher costs than early quality assurance.

In many organizations, testing is still seen as the final phase before go-live. The consequence: defects are discovered when changes are expensive, time-critical, or barely feasible. A defect identified during the requirements phase can often be fixed with minimal effort. The same defect, discovered in production, can lead to revenue loss, SLA violations, or contractual penalties.

The real risk lies not in the defect itself, but in when it is discovered. Late testing does not shift risks—it amplifies them. Every decision against early testing is therefore a conscious risk decision.

What “Testing Software Properly” Really Means

Effective software testing starts long before the first test case.

Many organizations begin testing by asking, “Which tools do we need?”—skipping the critical management question: What must our software deliver, and which risks are acceptable?

Key testing fundamentals include:

• Clear test objectives: Which functions, quality attributes, and risks are business-critical?
• Defined quality criteria: When is software considered stable enough for release?
• Clear responsibilities: Who decides on quality, priorities, and approvals?
• Structured test phases: Planning, design, execution, and evaluation build on each other systematically.

Only once these fundamentals are defined do test methods and automation deliver real economic value.

Why Early Testing (Shift Left) Is the Biggest Lever

The earlier you test, the cheaper every detected defect becomes.

Shift-left testing integrates testing activities into early development phases such as requirements and design. Defects are detected before they become technically, organizationally, and financially entrenched.

For management, this means:

• Fewer surprises before go-live
• Better budget and timeline predictability
• Greater operational stability

Early testing does not slow development—it accelerates it by avoiding costly rework loops.

Software Testing Is a Management Responsibility

Quality rarely fails because of missing tests—but because of missing decisions.

Software quality is not a purely technical issue. It is shaped by priorities, budgets, and conscious risk management. QA teams operate within the framework defined by management decisions.

The key question is: Which risks are you willing to accept—and which are not?

The Right Combination of Test Types

No single test approach is sufficient.

Professional testing relies on a deliberate combination of test types, including:

• Unit tests
• Integration tests
• System tests
• Acceptance tests
• API tests
• Static analysis

The economic benefit does not come from maximum automation, but from choosing the right mix.

Automated Tests as Efficiency Drivers

Automated tests enable faster, more reliable testing.

Automation allows repeated execution of tests such as unit, integration, and end-to-end tests—improving coverage, reducing defects, and accelerating releases.

Typical Sources of Defects

Defects arise in many places - systematic detection is key.

Common causes include unclear requirements, incomplete test cases, poor data quality, and insufficient test coverage. A structured test process and a strong quality culture significantly reduce these risks.

Testing Across the Entire Software Lifecycle

Quality is a continuous process, not a milestone.

Testing must take place:

• During requirements definition
• Throughout development
• In integration and acceptance testing
• In production

This ensures long-term system stability instead of constant firefighting.

When External Testing Partners Make Sense

External support increases speed, objectivity, and scalability.

External partners are particularly valuable in cases of:

• High time pressure
• Missing specialized expertise
• Fluctuating testing demand

andagon supports organizations with a holistic testing approach—from strategy to long-term quality assurance.

Making Software Testing Success Measurable

What is not measurable cannot be managed.

Relevant KPIs include:

• Defect rate before and after release
• Test coverage of critical functions
• Defect re-open rates

Only by linking these metrics to business goals can quality be actively managed.

Conclusion: How to Test Software Properly — and Future-Proof Your Business

High software quality is the result of early decisions, not late corrections.

Organizations that test software properly invest in solid fundamentals, early testing, and clear responsibilities—resulting in lower risk, reduced cost, and better decisions under pressure.

👉 Request a free, non-binding software testing consultation Together, we analyze where the biggest quality and cost drivers are in your development process - and how to reduce them sustainably: https://www.andagon.com/en/services/softwaretests.