A Forrester Total Economic Impact™ Study Commissioned By Xray, March 2025
Organizations using agile development tools need equally powerful solutions to manage and optimize their software testing processes. Although these tools excel at issue tracking and project management, they often lack built-in features to handle complex testing scenarios, automate repetitive tests, and ensure thorough test coverage. A comprehensive testing tool that seamlessly integrates with a development platform can cover the entire testing lifecycle from planning to reporting with full traceability.
Xray is natively designed for Jira and provides a structured approach to managing test cases, executing tests, and tracking defects. It features full traceability and reporting essential for maintaining testing process agility and flexibility. Xray’s use of Jira-native issue types ensures a streamlined workflow with a familiar interface that aligns with agile development methodologies and fosters collaboration between cross-functional teams. Xray supports integrations with automation frameworks and continuous integration (CI) tools and facilitates automated testing within CI and continuous delivery (CD) pipelines. Features like exploratory testing, traceability between requirements and tests, and customizable reporting enhance quality assurance and collaboration across development and QA teams.
Xray commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Xray.1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Xray on their organizations.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed ten decision-makers in five organizations with experience using Xray. 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 regulated industry with $2.5 billion in annual revenue and 10,000 employees in locations around the world. The organization recently adopted an agile development approach and holds 2,000 Jira licenses for project management.
Interviewees said that prior to using Xray, their organizations relied on outdated, unintegrated, on-premises test management tools that lacked features and were difficult to maintain. These legacy tools were poorly supported and had insufficient documentation, making them hard for new users to learn. High licensing costs led organizations to limit access to testing assets, leading to siloed teams and poor communication. The absence of integration between these tools and Jira also created synchronization problems, complicating and slowing workflows for agile teams.
After adopting and implementing Xray, the interviewees’ organizations consolidated all test management processes in Jira, enabling an agile yet disciplined development approach. Xray’s full traceability capabilities enabled testers to connect and relate issues more easily and effectively, shortening the time to repair production bugs. Xray’s intuitive dashboards and reports improved communication and streamlined processes, leading to better coordination and productivity across agile teams. The organizations also saved time and expenses after retiring inefficient legacy test management solutions.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The representative interviews and financial analysis found that a composite organization experiences benefits of $7.02 million over three years versus costs of $2.15 million, adding up to a net present value (NPV) of $4.87 million and an ROI of 226%.
Return on investment (ROI)
Benefits PV
Net present value (NPV)
Payback
From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in Xray.
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 Xray can have on an organization.
Interviewed Xray stakeholders and Forrester analysts to gather data relative to Xray.
Interviewed ten people at five organizations using Xray to obtain data about costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ organizations.
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.
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.
Readers should be aware of the following:
This study is commissioned by Xray 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 Xray.
Xray 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.
Xray provided customer names for the interviews but did not participate in the interviews.
Consulting Team:
Caro Giordano
| Role | Industry | Region | Revenue | Users |
|---|---|---|---|---|
| Test guild lead | Financial services | Domestic, headquartered in Europe | <$1 billion | 2,000 Jira licenses; 20% use Xray |
| Release and
quality
assurance manager Release and quality assurance manager |
Energy |
Multinational, headquartered in Europe |
$1 billion to $25 billion |
2,000 Jira licenses; 25% use Xray |
| Chief control officer | Financial services | Multinational, headquartered in United Kingdom | $25 billion to $50 billion | 2,000+ Jira licenses; not all use Xray |
| Director of
technical product management Product manager of agile planning Product manager of agile test management |
Pharmaceutical |
Multinational, headquartered in United States |
$50 billion to $100 billion |
25,000 Jira licenses; not all use Xray |
| Test
manager Test manager |
Automotive | Multinational, headquartered in Europe | >$100 billion | 100,000 Jira licenses; 25% use Xray |
Prior to implementing Xray, most of the interviewees’ organizations relied on outdated, unintegrated, on-premises test management tools that lacked features and were difficult to maintain. The interviewees noted how their organizations struggled with common challenges, including:
The interviewees’ organizations recognized the need for a more sophisticated solution and searched for a test management tool that delivered:
The interviewees’ organizations used a thorough evaluation process for a handful of tools and ran one or more pilots as a proof of concept before making their selection and rolling it out.
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a B2B company in a regulated industry with $2.5 billion in annual revenue and 10,000 employees in locations around the world. The organization recently adopted an agile development approach and holds 2,000 Jira licenses for project management, including 400 testers and 1,200 developers who provide testing and quality status for all Jira users. Prior to implementing Xray, the organization relied on an outdated, unintegrated, on-premises test management tool that lacked features and was difficult to maintain.
Deployment characteristics. After piloting Xray, the organization takes three months to deploy the solution, migrate existing test cases, and train users on test management processes leveraging Xray.
| Ref. | Benefit | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|
| Atr | Improved test management productivity | $716,040 | $1,790,100 | $2,386,800 | $4,892,940 | $3,923,605 |
| Btr | Improved software development productivity | $335,644 | $716,040 | $895,050 | $1,946,734 | $1,569,364 |
| Ctr | Value of faster mean time to repair | $231,660 | $494,208 | $926,640 | $1,652,508 | $1,315,235 |
| Dtr | Cost savings from retiring legacy test management solutions | $61,695 | $92,543 | $111,051 | $265,289 | $216,003 |
| Total benefits (risk-adjusted) | $1,345,039 | $3,092,891 | $4,319,541 | $8,757,471 | $7,024,207 | |
Evidence and data. Integrating Xray into Jira boosted test management productivity, enabling the interviewees’ organizations to increase the number of test cases managed without augmenting resources. Xray’s user-friendly interface streamlined testing processes, minimized administrative tasks, and enhanced communication for efficient issue resolution. Direct defect entry and requirement linking improved transparency, while simplified time tracking and multiproject capabilities enhanced efficiency. Insights from Jira Query Language functions and dashboards ensured the organizations could maintain high standards in test case creation and compliance. Overall, these improvements led to cleaner, more streamlined processes, saving testers time and increasing their productivity.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact test management productivity gains include the number and compensation of software testers and test managers and their prior state of efficiency. These time savings can be even greater for testers who leverage Xray features and functionality more proficiently.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $3.9 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| A1 | Software testers/managers | Composite | 400 | 400 | 400 | |
| A2 | Percentage of time spent on test management tasks | Composite | 65% | 65% | 65% | |
| A3 | Months Xray is deployed | Interviews | 9 | 12 | 12 | |
| A4 | Percentage of time saved attributable to Xray | Interviews | 8% | 15% | 20% | |
| A5 | Percentage of time recaptured | Forrester standard | 50% | 50% | 50% | |
| A6 | Fully burdened annual salary for a software tester/manager (blended) | Forrester standard | $108,000 | $108,000 | $108,000 | |
| At | Improved test management productivity | A1*A2*(A3/12)*A4*A5*A6 | $842,400 | $2,106,000 | $2,808,000 | |
| Risk adjustment | ↓15% | |||||
| Atr | Improved test management productivity (risk-adjusted) | $716,040 | $1,790,100 | $2,386,800 | ||
| Three-year total: $4,892,940 | Three-year present value: $3,923,605 | |||||
Evidence and data. The integration of Xray into Jira boosted software development productivity and enabled the interviewees’ organizations to scale their number of development projects. Centralized test management coupled with a comprehensive quality framework fostered continuous improvement and operational efficiency. Enhanced collaboration between testers and developers made defect management and communication more efficient. Overall, Xray integrating with Jira facilitated a more disciplined development approach, improved communication, and streamlined processes, leading to better coordination and productivity across agile teams.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact software developer productivity gains include the number and compensation of software developers, the nature of the development environment, and their prior state of efficiency. These time savings can be even greater for developers who leverage Xray features and functionality more proficiently.
Results. To account for these risks, Forrester adjusted this benefit downward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.6 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | Software developers involved in testing | Composite | 1,200 | 1,200 | 1,200 | |
| B2 | Percentage of time spent on software development | Composite | 65% | 65% | 65% | |
| B3 | Percentage of software development time spent on testing activities | Composite | 25% | 25% | 25% | |
| B4 | Months Xray is deployed | Interviews | 9 | 12 | 12 | |
| B5 | Percentage of time saved attributable to Xray | Interviews | 5% | 8% | 10% | |
| B6 | Percentage of time recaptured | Forrester standard | 50% | 50% | 50% | |
| B7 | Fully burdened annual salary for a software developer | Forrester standard | $108,000 | $108,000 | $108,000 | |
| Bt | Improved software development productivity | B1*B2*B3*(B4/12)*B5*B6*B7 | $394,875 | $842,400 | $1,053,000 | |
| Risk adjustment | ↓15% | |||||
| Btr | Improved software development productivity (risk-adjusted) | $335,644 | $716,040 | $895,050 | ||
| Three-year total: $1,946,734 | Three-year present value: $1,569,364 | |||||
Evidence and data. Integrating Xray into Jira reduced the mean time to repair (MTTR) by simplifying incident identification and relation. Although the impact varied by team and application, the new processes decreased bug incidents overall. One interviewee also experienced enhanced deliverable quality crucial in regulatory environments. Broadly, Xray streamlined issue management and resolution, leading to reduced rework for developers and reduced time to validate rework for testers.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact the value of faster MTTR include the number and compensation of software developers, testers, and test managers; the number of production bugs experienced; and their prior state of efficiency addressing them. The value of this benefit also does not include the avoided costs of reputational harm to the organization, which could be substantial for widely used, mission-critical applications.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.3 million.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1 | Software developers involved in testing | Composite | 1,200 | 1,200 | 1,200 | |
| C2 | Percentage of time spent on software development | Composite | 65% | 65% | 65% | |
| C3 | Percentage of time spent on rework related to production bug fixes | Composite | 15% | 15% | 15% | |
| C4 | Fully burdened annual salary for a software developer | Forrester standard | $108,000 | $108,000 | $108,000 | |
| C5 | Subtotal: Developer cost of rework related to production bug fixes | C1*C2*C3*C4 | $12,636,000 | $12,636,000 | $12,636,000 | |
| C6 | Software testers/managers | Composite | 400 | 400 | 400 | |
| C7 | Percentage of time spent on test management tasks | Composite | 65% | 65% | 65% | |
| C8 | Percentage of time spent verifying production bug repairs | Composite | 10% | 10% | 10% | |
| C9 | Fully burdened annual salary for a software tester/manager (blended) | Forrester standard | $108,000 | $108,000 | $108,000 | |
| C10 | Subtotal: Tester cost of verifying production bug repairs | C6*C7*C8*C9 | $2,808,000 | $2,808,000 | $2,808,000 | |
| C11 | Months Xray is deployed | Interviews | 9 | 12 | 12 | |
| C12 | Percentage of time saved attributable to Xray | Interviews | 5% | 8% | 15% | |
| C13 | Percentage of time recaptured | Forrester standard | 50% | 50% | 50% | |
| Ct | Value of faster mean time to repair | (C5+C10)*(C11/12)*C12*C13 | $289,575 | $617,760 | $1,158,300 | |
| Risk adjustment | ↓20% | |||||
| Ctr | Value of faster mean time to repair (risk-adjusted) | $231,660 | $494,208 | $926,640 | ||
| Three-year total: $1,652,508 | Three-year present value: $1,315,235 | |||||
Evidence and data. Retiring legacy test management solutions and transitioning to Xray often resulted in significant cost savings for interviewees’ organizations. With Xray, the license cost per user was a fraction of what they paid for legacy tools, enabling them to increase the number of active users. Because it is a Jira application, interviewees’ organizations found Xray to be less expensive to maintain compared to standalone tools.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact the cost savings from retiring or reducing the use of legacy test management solutions include the licensing and pricing models of those solutions, the costs associated with their upkeep, and the pace at which the organization migrates away from those solutions.
Results. To account for these risks, Forrester adjusted this benefit downward by 20%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $216,000.
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| D1 | Legacy test management solutions licensing costs | Interviews | $135,000 | $135,000 | $135,000 | |
| D2 | FTEs involved in maintaining legacy solutions | Interviews | 1 | 1 | 1 | |
| D3 | Percentage of time spent supporting legacy solutions | Interviews | 30% | 30% | 30% | |
| D4 | Fully burdened annual salary for FTEs involved in maintaining legacy solutions | Forrester standard | $128,250 | $128,250 | $128,250 | |
| D5 | Percentage of time recaptured | Forrester standard | 50% | 50% | 50% | |
| D6 | Cost of maintaining legacy solutions | D1+(D2*D3*D4*D5 ) | $154,238 | $154,238 | $154,238 | |
| D7 | Reduction in use of legacy solutions | Composite | 50% | 75% | 90% | |
| Dt | Cost savings from retiring legacy test management solutions | D6*D7 | $77,119 | $115,679 | $138,814 | |
| Risk adjustment | ↓20% | |||||
| Dtr | Cost savings from retiring legacy test management solutions (risk-adjusted) | $61,695 | $92,543 | $111,051 | ||
| Three-year total: $265,289 | Three-year present value: $216,003 | |||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Xray and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Etr | Xray licensing | $0 | $28,980 | $28,980 | $61,793 | $119,753 | $96,721 |
| Ftr | Planning, implementation, and ongoing management | $73,747 | $22,124 | $14,749 | $22,124 | $132,744 | $122,671 |
| Gtr | Training and change management | $1,052,480 | $239,200 | $239,200 | $621,920 | $2,152,800 | $1,934,878 |
| Total costs (risk-adjusted) | $1,126,227 | $290,304 | $282,929 | $705,837 | $2,405,297 | $2,154,270 | |
Evidence and data. Xray licensing costs are based on the number of Jira users, with pricing tiers depending on whether Jira Cloud or Jira Data Center is used.
The interviewees’ organizations used a mix of the two license types, typically starting with the standard module and later adopting Xray Enterprise.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact the costs associated with Xray licensing include the size and scale of Jira deployment and the license type deployed.
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $97,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| E1 | Xray Cloud licensing costs | Provided by Xray | $27,600 | $27,600 | |||
| E2 | Xray Enterprise Cloud licensing costs | Provided by Xray | $58,850 | ||||
| Et | Xray licensing | E1+E2 | $27,600 | $27,600 | $58,850 | ||
| Risk adjustment | ↑5% | ||||||
| Etr | Xray licensing (risk-adjusted) | $0 | $28,980 | $28,980 | $61,793 | ||
| Three-year total: $119,753 | Three-year present value: $96,721 | ||||||
Evidence and data. Interviewees reported planning and implementation time ranging from one to six months depending on the size and scope of their organization’s testing operations. Two organizations used Xray partners to help with the transition, but others managed it themselves. All of the interviewees’ organizations ran pilot projects and took a phased adoption approach, working with different test and development teams to facilitate change management. Once implemented, Xray required low maintenance, primarily consisting of Jira-related configuration adjustments, update deployments, and tool integrations.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact costs associated with planning, implementation, and ongoing management include the volume, organization, and state of test data inside the company prior to deploying Xray; the number and scope of pilot tests run; the number of integrations made to Xray; the efficiency of the teams involved in deploying and maintaining Xray; and local compensation rates.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $123,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| F1 | Initial planning and implementation, including existing project migration (months) | Interviews | 3 | ||||
| F2 | Data architects involved in initial planning and implementation | Interviews | 4 | ||||
| F3 | Percentage of time dedicated to planning and implementation | Interviews | 50% | ||||
| F4 | Fully burdened monthly salary for a data architect | Forrester standard | $10,688 | ||||
| F5 | Subtotal: Planning and implementation | F1*F2*F3*F4 | $64,128 | ||||
| F6 | Jira administrators/project managers involved in ongoing management | Interviews | 1 | 1 | 1 | ||
| F7 | Percentage of time dedicated to ongoing management and integrations | Interviews | 15% | 10% | 15% | ||
| F8 | Fully burdened annual salary for a Jira administrator/project manager | Forrester standard | $128,250 | $128,250 | $128,250 | ||
| F9 | Subtotal: Ongoing management | F6*F7*F8 | $0 | $19,238 | $12,825 | $19,238 | |
| Ft | Planning, implementation, and ongoing management | F5+F9 | $64,128 | $19,238 | $12,825 | $19,238 | |
| Risk adjustment | ↑15% | ||||||
| Ftr | Planning, implementation, and ongoing management (risk-adjusted) | $73,747 | $22,124 | $14,749 | $22,124 | ||
| Three-year total: $132,744 | Three-year present value: $122,671 | ||||||
Evidence and data. Interviewees said their organizations often held internal trainings and customized Xray Academy-provided training materials to suit their team structures and processes. For teams familiar with Jira, Xray was easy to adopt; however, business testers with no exposure needed additional support. Change management was a significant training component to instill new test management processes and ways of working enabled by Xray.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. Organizational differences that may impact costs associated with training and change management include time needed for up-front planning and training material development, familiarization time needed by users, and local compensation rates.
Results. To account for these risks, Forrester adjusted this cost upward by 15%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.9 million.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|---|
| G1 | Software testers/managers | Composite | 400 | 400 | 400 | 400 | |
| G2 | Time spent on training and change management per software tester/manager (hours) | Interviews | 20 | 4 | 4 | 20 | |
| G3 | Fully burdened hourly salary for a software tester/manager (blended) | Forrester standard | $52 | $52 | $52 | $52 | |
| G4 | Subtotal: Training and change management costs for software testers | G1*G2*G3 | $416,000 | $83,200 | $83,200 | $416,000 | |
| G5 | Software developers involved in testing | Composite | 1,200 | 1,200 | 1,200 | 1,200 | |
| G6 | Time spent on training and change management per software developer (hours) | Interviews | 8 | 2 | 2 | 2 | |
| G7 | Fully burdened hourly salary for a software developer | Forrester standard | $52 | $52 | $52 | $52 | |
| G8 | Subtotal: Training and change management costs for software developers | G5*G6*G7 | $499,200 | $124,800 | $124,800 | $124,800 | |
| Gt | Training and change management | G4+G8 | $915,200 | $208,000 | $208,000 | $540,800 | |
| Risk adjustment | ↑15% | ||||||
| Gtr | Training and change management (risk-adjusted) | $1,052,480 | $239,200 | $239,200 | $621,920 | ||
| Three-year total: $2,152,800 | Three-year present value: $1,934,878 | ||||||
The financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($1,126,227) | ($290,304) | ($282,929) | ($705,837) | ($2,405,297) | ($2,154,270) |
| Total benefits | $0 | $1,345,039 | $3,092,891 | $4,319,541 | $8,757,471 | $7,024,207 |
| Net benefits | ($1,126,227) | $1,054,735 | $2,809,962 | $3,613,704 | $6,352,174 | $4,869,937 |
| ROI | 226% | |||||
| Payback | 13 months | |||||
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
Benefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization.
Costs comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
Related Forrester Research
February 18, 2025, Top Emerging Technologies: TuringBots: Generative AI For SW Development, Webinar.
Diego Lo Giudice, Amid The AI Hype, Agile Still Remains Relevant In 2025, Forrester Blogs.
The State Of Agile Development, 2025: It’s Still Relevant, With Benefits And Challenges, Forrester Research, Inc., January 17, 2025.
The Forrester Wave™: Modern Application Development Services, Q1, 2025, Forrester Research, Inc., January 15, 2025.
Predictions 2025: Software Development, Forrester Research, Inc., October 22, 2024.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders.
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