Quantifying Success: Measuring ROI in Test Automation

Purpose: The purpose of this paper to provide strategic decision to implement test automation with measurable ROI is a favoured approach for organizations seeking to improve the quality of their software, expedite delivery, and mitigate testing expenses. Methodology: The present paper, titled "Quantifying Success: Measuring ROI in Test Automation," delves deeply into the fundamental aspects of ROI evaluation within the realm of test automation. It outlines the methodology behind ROI calculation, explores the cost factors and advantages associated with automation, and sheds light on the optimal strategies for achieving a favourable ROI. Findings: By presenting real-world case studies and examples, this paper effectively demonstrates the practical application of ROI measurement in test automation. The formula for Return on Investment (ROI) typically falls under the category of being "basic". While costs are relatively simple to measure, assessing the worth of potential advantages proves to be considerably more challenging. Unique Contribution to Theory, Policy, and Practice: Approaches to calculating ROI often oversimplify various aspects of test automation, subsequently resulting in inaccurate outcomes. These inaccuracies, in turn, foster impractical expectations among management in relation to test automation, ultimately culminating in failure at individual, team, and occasionally project levels, thereby offering valuable insights to organizations seeking to optimize the efficacy of their testing endeavours.