The Total Economic Impact™ Of TestRail

Cost Savings And Business Benefits Enabled By TestRail

A Forrester Total Economic Impact Study Commissioned By TestRail, November 2024

Modern software testing requires a technology environment that enables seamless navigation across different testing capabilities and types, improves test information flow, and fosters tight collaboration among testing subject-matter experts (SMEs), developers, and business testers. TestRail’s test management solution enables application development and delivery (AD&D) teams to organize around common metrics that focus testers, developers, and operations on business outcomes that balance speed with quality.

TestRail is a web-based test management tool designed for QA teams, developers, and project stakeholders to manage, track, and organize testing activities. It provides a centralized, user-friendly platform for creating and managing test cases, executing test runs, and generating detailed reports, which provides needed insight into the testing lifecycle and enhances collaboration and communication within teams.

TestRail commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying TestRail.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of TestRail on their organizations.

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Return on investment (ROI)

180%

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Net present value (NPV)

$2.76M

To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using TestRail. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a B2B company in a tech or tech-adjacent industry with $1.5 billion in annual revenue and 5,000 employees in locations around the world.

Interviewees said that prior to using TestRail, their organizations’ QA operations relied on a variety of commercial tools, spreadsheets, open-source plug-ins, and tools developed in-house for test management that led to disjointed test management practices and processes. Legacy tools were often inflexible, lacked important features, and were difficult for users to learn, which led some to abandon them for inefficient spreadsheet-based processes.

After adopting and deploying TestRail, the interviewees’ organizations derived test administration productivity gains from streamlined test setups and executions. Standardizing on TestRail provided better visibility into testing progress for all stakeholders involved, and it especially improved collaboration between testers and developers. This, in turn, shortened development lifecycles. As a result, the organizations were able to reduce the incidence and cost to repair production bugs, bring new and improved offerings to market faster, and improve satisfaction for those involved in testing.

Key Findings

Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:

  • Gaining $1.4 million in test administration productivity over three years. After deploying TestRail, the composite organization’s test administrators set up and execute test runs faster. They take advantage of TestRail’s reusability features to reuse test cases from project to project. They also filter test cases with greater granularity in order to execute only the tests they need for a particular code change, leading to significant time savings. Consolidation of test management in TestRail leads to better resource allocation, orchestration, and team flexibility.
  • Gaining $674,000 in software developer productivity over three years. The composite organization integrates TestRail with its application lifecycle management and continuous software development tools to provide greater transparency in the testing process and improve collaboration between developers and testers. Software developers take more immediate action on defects, which saves time and reduces the overall development lifecycle.
  • Reducing the cost of production bugs by $607,000. Deployment of TestRail improves the composite’s awareness of production bugs. This enables its developers to catch and correct them earlier in the development process, and it reduces the cost of rework.
  • Improving time to market for new and improved offerings by three months. The integration of TestRail in the composite organization’s application lifecycle management and continuous software development tools helps its development teams become more agile, shortening sprint times and reducing overall time to production. The value of this accelerated time to market adds up to more than $1.5 million over three years.

Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:

  • Integration. The composite organization takes advantage of TestRail’s API to integrate test management with test automation, reporting, development and continuous integration/continuous delivery (CI/CD) tools for full visibility and traceability of projects.
  • Flexibility and functionality. The composite organization takes advantage of TestRail’s rich feature set and customization capabilities to accommodate a variety of workflows and test case types suitable for all of the products it produces.
  • Reporting. TestRail’s reporting provides real-time visibility into testing progress to stakeholders throughout the organization with easy-to-understand charts and graphs.
  • Performance and scalability. The composite organization subscribes to TestRail’s Enterprise Cloud service, which supports test and development teams working around the world.
  • User satisfaction. The composite’s users find TestRail’s user interface and workflows to be easy to understand and the performance to be fast, making day-to-day testing work more enjoyable.
  • Faster onboarding. TestRail’s easy-to-use, intuitive interface makes it easier for the composite organization to onboard new users. Many new joiners arrive having prior TestRail experience.
  • Greater collaboration through more standardized test management processes. The composite organization benefits from having a unified test management platform with defined workflows and test-related metrics. It collects test data more systematically, testers are able to share their work more easily, and collaboration improves between all stakeholders involved in testing.
  • Flexible billing. The composite organization takes advantage of TestRail’s flexible billing through its Enterprise Cloud subscription to easily and immediately provision new users.
  • Customer service. The composite organization takes advantage of TestRail technical support delivered via email, often received within a few hours after the initial inquiry.

Costs. Three-year, risk-adjusted PV costs for the composite organization include:

  • TestRail licensing. The composite organization subscribes to Enterprise Cloud licenses for 500 users. These costs total $292,000 over three years.
  • Planning, implementation, and ongoing management. Planning and implementation — including migration of existing projects — takes three months to complete and involves four data architects working part-time during that period. Moving forward, one data engineer spends 10% to 20% of their time maintaining the TestRail platform, including onboarding new users, setting up new projects, and adding integrations. These costs total $229,000 for the composite organization over three years.
  • Training. Test administrators receive 40 hours of initial training on TestRail while other users receive 20 hours. Moving forward, all users are invited to quarterly “brown bag” sessions to review new product features, functionality, and test management processes. These activities cost the composite organization a total of $1 million over three years.

The representative interviews and financial analysis found that a composite organization experiences benefits of $4.30 million over three years versus costs of $1.54 million, adding up to a net present value (NPV) of $2.76 million and an ROI of 180%.

“There is no product that TestRail does not play a very significant role in helping us understand what the quality of the product is and whether it’s ready for release and launch. It is part of our quality culture top to bottom every day [for] every reporting [and] testing all throughout. We’ve built an entire QA culture around it.”

QA lead, technology

Key Statistics

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    Return on investment (ROI)

    180%
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    Benefits PV

    $4.30M
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    Net present value (NPV)

    $2.76M
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    Payback

    9 months
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Benefits (Three-Year)

Test administration productivity gains Software developer productivity gains Reduced cost of production bugs Value of faster time to market for new and improved offerings

TEI Framework And Methodology

From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in TestRail.

The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that TestRail can have on an organization.

  1. Due Diligence

    Interviewed TestRail stakeholders and Forrester analysts to gather data relative to TestRail.

  2. Interviews

    Interviewed four representatives at organizations using TestRail to obtain data about costs, benefits, and risks.

  3. Composite Organization

    Designed a composite organization based on characteristics of the interviewees’ organizations.

  4. Financial Model Framework

    Constructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.

  5. Case Study

    Employed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.

Disclosures

Readers should be aware of the following:

This study is commissioned by TestRail and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.

Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in TestRail.

TestRail reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.

TestRail provided the customer names for the interviews but did not participate in the interviews.

Consulting Team:

Caro Giordano

M
K

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