Test automation – What is ROI?

Test automation – What is ROI?

You may hear a term ROI (Return on investment) when you are in the initial phase of test automation project. For success of any project, it is important to get the returns or benefits from the investment done in that project. Test automation project is not an exception. ROI calculation is done while creating business case for the automation project.
Simply speaking it a cost – benefit analysis, estimating the one time and recurring costs and projecting the direct and indirect benefits to find out when the investment would start giving return. The one time automation costs include tool cost and costs of efforts required for scripting. Recurring costs would be the tool administration and support costs and automation script maintenance costs. Direct benefits include savings in manual testing efforts. Business benefits include quicker turnaround time for testing and better regression coverage.
So it can be seen that lesser the costs, better and faster will be the returns. Optimal balance between tool cost and automation efforts, higher automation productivity help in reducing the initial costs.  Robust design and sturdy framework reduce script maintenance, thereby lowering the recurring costs.  Higher coverage of automation would reduce manual testing efforts significantly in regression testing providing better savings. Also, ROI would be faster when there are more execution cycles in a given period because saving in each cycle contributes to benefits.

For a test engineer, it is important to focus on higher productivity, better automation coverage and robust design to contribute into the automation benefits for his or customer’s organization.

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