The PRWIRE Press Releaseshttp://2009-11-18T23:02:18ZPlanit reports surprise improvements in Australian/New Zealand software project conditions despite GFC2009-11-18T23:02:18Zplanit-reports-surprise-improvements-in-australian-new-zealand-software-project-conditions-despite-gfc
Conditions for software projects are improving for Australian/New Zealand companies despite the effects of the global financial crisis, although companies are taking a more cautious approach and reducing project resources.
These are some of the surprising findings of the third annual Planit Testing Index, commissioned by independent Australian software testing and software tester training organisation, Planit. The Index was conducted by an unaffiliated third-party to ensure the credibility of the data.
Based on responses from 190 companies between August and September 2009, the survey was conducted at a time of global financial uncertainty, when project activity could be expected to weaken and where budget constraints could affect investment in both software development and testing. Instead, just 5.9 per cent of organisations reported project cancellations due to economic changes, with more than 31 per cent reporting the economy had no effect whatsoever on their projects.
In between these two findings, however, are signs of increased caution: 26 per cent of organisations reported requiring more rigorous evaluation of projects, and the same number said project resources have been reduced due to economic changes.
“Software testing has reached an interesting crossroad, with an upswing in confidence on the one hand, and an increase in caution on the other,” says Chris Carter, managing director, Planit. “While it’s encouraging that fewer projects than expected have been affected by the broader economy, the drop in testing resources is worrying, as is the anecdotal feedback from some of the respondents of ‘increased development stress and short-term compromises’.”
Carter, who is also the chairman of the Australian/New Zealand Testing Board (ANZTB) and vice president of the International Software Testing Qualifications Board (ISTQB), says the increased caution and more thorough project evaluations could prove beneficial in the long run.
“With more rigorous planning comes more sophisticated and sensible approaches to testing,” he says. “Reduced project and testing budgets – down from $17.81 million and $3.31 million respectively in 2008, to $13.58 million and $2.72 million in 2009 – don’t necessarily mean lower-quality testing. Indeed the percentage of testing as part of the overall project budget has increased slightly, from just under 20 per cent in 2008 to 20.6 per cent in 2009.
“This would indicate that attitudes to testing continue to improve. While the proportion of organisations rating testing as ‘critical’ has stayed relatively stable, the number of companies ranking it as ‘strategically important’ has grown from 16 per cent in 2008 to 23 per cent in 2009. Fewer organisations are rating testing as a low priority, or a ‘necessary evil’ and a cost to be minimised, despite the economic challenges.”
With improved attitudes to testing come improved project completions. Last year, 46 per cent of completed projects were on time and on budget; in 2009 that has improved to 49 per cent. Cancelled projects have also fallen by one percentage point.
Despite the gains, Carter believes there is clear room form improvement, particularly as companies are driven to do more with less.
“Most companies still start to test their projects at the building or, worse, the rollout phase, which makes it difficult to align the project with the organisations’ business objectives,” he says. “Only 8.4 per cent of respondents said they begin testing at the requirements phase, although 51.6 per cent said they would prefer to start testing this early.
“Indeed, the earlier testing is started, the more money can be saved by better aligning the project with its intended outcomes. This becomes very difficult to do once the project is well into development. An early start also saves on development time, and, most importantly, improves the overall quality of the project.”
Carter says the results of the 2009 Planit Testing Index show that organisations are looking at software testing not just as a risk management tool but as a way of controlling IT costs and determining the viability of projects before proceeding.
“Clearly some organisations are taking a blunt and less strategic approach to the economic downturn, cutting quality as well as costs, and the dangers here are obvious: potential project failure, reduced customer delivery, and falling behind competitors who take a more measured approach,” he says. “The improved attitudes towards software testing within many organisations are encouraging for improved project outcomes, and would appear to account for the reported improved project conditions, and we hope this trend will continue into 2010.”
About Planit
Planit provides independent software testing and systems assurance to maximise business and IT performance. By combining best practice software testing methodologies, people and tools, Planit provides thorough, efficient and economic testing which is aligned with organisations’ business strategies. Planit was originally established as a subsidiary of a UK company and, since an MBO in 1999, the company has grown substantially, with offices in Australia and New Zealand and local and international clients. Additional information about Planit is available at www.planit.net.au.
Planit brings Learntesting to Australia and New Zealand2009-10-19T23:31:30Zplanit-brings-learntesting-to-australia-and-new-zealand
Independent Australian software testing and training orgainsation, Planit, has become the local partner for online training resource, Learntesting, to help Australian and New Zealand businesses improve the quality of their software testing.
Learntesting is a new online hub that provides a global network of expert training resources. It provides access to online instructor-led courses, virtual classrooms, blended offerings, e-books and a range of other software testing related content, including free papers and presentations. Throughout the rest of 2009 and 2010 the portal will expand significantly and will include the addition of Planit’s course materials.
As the local partner for the portal, Planit is the administrator of the exams for Australian and New Zealand students and will provide technical support. Planit’s Managing Director, Chris Carter, says consolidating global content and administering it through local testing providers in each country provides an alternative to traditional classroom training.
“For distributed workforces this type of training is a cheaper alternative, by about 50 per cent, to classroom learning,” says Carter. “We all know that continuing to invest in training your staff is essential and this portal allows businesses to do just that, in a more cost-effective and less disruptive way.
“Contract software testers, who often foot the bill for their own training and have to absorb the time they could be charging out, will also benefit from the reduced costs and easy access the portal provides. The qualifications they receive will then give them an edge when competing for new business.”
Learntesting offers its content in a variety formats to suit all types of learning styles. From tutor-presented videos to voice-overs and sample exam papers, businesses and individuals alike can benefit from the portal.
About Planit
Planit provides independent software testing and systems assurance to maximise business and IT performance. By combining best practice software testing methodologies, people and tools, Planit provides thorough, efficient and economic testing which is aligned with organisations’ business strategies. Planit was originally established as a subsidiary of a UK company and, since an MBO in 1999, the company has grown substantially, with offices in Sydney and Melbourne and clients in Australia, New Zealand and the United Kingdom. Additional information about Planit is available at www.planit.net.au.
Planit tests the water in New Zealand2009-07-22T22:31:48Zplanit-tests-the-water-in-new-zealand
Australian independent software testing and training organisation, Planit, has expanded its operations to New Zealand. The company recently opened an office in Wellington and will offer a one-stop shop for software testing and training in software testing.
Planit provides government departments and businesses in industries including banking and finance, telecommunications and insurance, with quality assurance, software testing services and software tester training and certification.
Large organisations – particularly in the government and corporate sector – rely on custom-built software programs to successfully run their businesses. Without proper testing of those applications businesses risk not only vast amounts of time and money on the project, but also the performance of their business that relies on the systems to function.
Chris Carter, Planit’s managing director, is also the president of the Australian/New Zealand Testing Board (ANZTB) and secretary of the International Software Testing Qualifications Board (ISTQB). Carter says the company has set up shop in New Zealand in response to a demand from customers there.
“Customers kept asking when we were going to open an office in New Zealand,” said Carter. “What they wanted was one company that could service all their software testing needs: one that could train employees in practical methods and processes; that could help with certification to international standards; that could provide a flexible and scalable resource pool; and that was vendor agnostic.
“While the global financial crisis has seen many oragnisations reduce their operations, both in terms of staff and projects, it has had the reverse effect on us,” said Carter. “New Zealand businesses cannot risk losing money on poorly developed projects, or be part of the five per cent of projects in ANZ that are cancelled each year. They need to include testing early in software development projects to ensure success.”
Planit has been servicing the New Zealand market for a number of years through its Australian operation. The company felt the time was right to establish an office in New Zealand to provide high-level guidance and advice to customers on how they can set up their testing processes.
In 2008, Planit included New Zealand organisations for the first time in its annual Planit Testing Index. The results showed that while New Zealand businesses viewed software testing as more critical than Australian organisations did, they conducted the testing later in their software projects, reducing the benefit of that testing – just 21 per cent started testing early in the software development phase, compared to 36 per cent of Australian organisations.
The 2008 index also showed that software projects in Australia and New Zealand, on average, cost $17.8 million.
Carter said for development projects to succeed there had to be an element of rigour at the specification stage.
“A poor set of requirements guarantees failure,” he said. “However, our testing procedures can help New Zealand companies better understand the viability of their projects. Any potential pitfalls can be identified early and so help manage the cost of the project.”
Simon Farrant will set up the New Zealand business. Farrant has worked for Planit for three years as a principal consultant based in the Sydney office. The company also plans to appoint additional testing and training staff.
“Our ultimate goal is to satisfy the growing demand we see in the New Zealand market for high-quality and reliable testing services,” said Carter.
About Planit
Planit provides independent software testing and systems assurance to maximise business and IT performance. By combining best practice software testing methodologies, people and tools, Planit provides thorough, efficient and economic testing which is aligned with organisations’ business strategies. Planit was originally established as a subsidiary of a UK company and, since an MBO in 1999, the company has grown substantially, with offices in Sydney and Melbourne and clients in Australia, New Zealand and the United Kingdom. Additional information about Planit is available at www.planit.net.au.
Failed software projects still a reality for Australian and New Zealand organisations2008-11-12T23:00:00Zfailed-software-projects-still-a-reality-for-australian-and-new-zealand-organisations
As the global financial meltdown wreaks havoc on the economy and IT budgets are increasingly stretched, more than half of Australia’s software projects are still failing, with botched, re-scoped and cancelled projects wasting around A$197,000 per week.
Now in its second year, the Planit Testing Index, commissioned by independent, Australian software testing organisation, Planit, surveyed 210 companies in Australia and New Zealand on their software testing practices. The surveyed organisations were mostly in the finance/insurance, telecommunications and government sectors.
Chris Carter, Planit’s managing director, is also the president of the Australian/New Zealand Testing Board (ANZTB) and secretary of the International Software Testing Qualifications Board (ISTQB). Carter says although organisations are still completing just 46 per cent of their software projects on time and on budget, he is heartened to see a slight improvement (up from 42 per cent) on the 2007 results.
“There’s no denying the project success rate in the Australian/New Zealand region still has a long way to go, however the Index revealed organisations are starting to seriously look at how they can increase their chances of a successful software project,” he says. “For instance, 57 per cent of companies now rate testing as a critical element in producing reliable software, compared to 50 per cent in 2007.
“This is important to note because companies who view testing as important tend to use advanced testing techniques and methods. These organisations successfully completed 62 per cent of their projects, while companies who undertook testing in a more ad hoc way completed just 32 per cent of their projects successfully.”
While finance/insurance companies lead the pack when it comes to the budget they allocate to testing (24 per cent), organisations in the government sector spend just 14 per cent of their total project budget on testing. Given government projects have the highest average budget ($42.2 million), these organisations are risking significant potential losses should their projects fail or over run.
Carter says the elements from the 2007 survey that organisations attributed to successful projects are similar in 2008, with 66 per cent of organisations rating quality of staff as good or very good for their most important project and 58 per cent believing management buy-in was good or very good.
“On the other hand, project estimation was the least positive of project conditions, with just 23 per cent of respondents rating timing estimates favourably and 25 per cent feeling optimistic about budget estimates,” says Carter.
As the global meltdown hits Australia and New Zealand, software project conditions are already worsening. What happens in 2009 is anyone’s guess but, based on the Index, it would appear project conditions are likely to deteriorate. In 2008, 16 per cent reported very poor conditions (up from six per cent in 2007), while 37 per cent rated the conditions as better than ok (down from 44 per cent in 2007).
Almost half (49 per cent) of organisations plan to increase their use of structured testing processes over the next 12 months, while 26 per cent will increase their employment of certified testing professionals. On the offshoring side, 16 per cent plan to increase their outsourcing of testing to overseas companies.
Carter believes the continuing financial crisis is going to increase pressure on organisations to keep software development project budgets in check.
“Already, we’ve seen project conditions worsen since 2007 and unless companies make project management and quality assurance a priority, this is likely to continue,” he warns. “Organisations who have invested, and continue to invest, in their testing capability will have the edge over their competition in 2009.”
The Planit Testing Index showed that:
- Organisations started testing earlier in 2008, with almost one quarter (24 per cent) of respondents testing during the requirements (first) phase in their most important project.
- More New Zealand organisations (65 per cent) view software testing as a critical element in producing reliable software than their Australian counterparts (55 per cent).
- Project drivers differ between sectors, with 30 per cent of finance/insurance companies listing increasing profitability as their major motivation, while 21 per cent of government organisations view meeting compliance requirements as their primary driver. Telecommunications companies are focused on cost reduction, with 17 per cent highlighting this as their biggest driver in completing software development projects.
- The average project cost $844,863 per month, slightly down on the 2007 figure of $853,000.
New Zealand specific
- More New Zealand organisations (65 per cent) view software testing as a critical element in producing reliable software than their Australian counterparts (55 per cent).
- When projects come under pressure, New Zealand companies are more likely to seek increased funding (35 per cent of New Zealand organisations versus 25 per cent of Australian companies). Just nine per cent of New Zealand organisations will de-scope a project when it’s under pressure, compared to 16 per cent of their Australian counterparts.
- When it comes to commencing testing, New Zealand organisations lag behind their counterparts across the Tasman, with just 21 per cent starting testing early in the software development phase, compared to 36 per cent of Australian organisations.
Note to editors: Planit will present the findings of the Planit Testing Index 2008 at cocktail functions in Sydney and Melbourne in November.
Sydney
When: Monday, November 24
Where: Hilton Hotel
488 George Street
Time: 5 pm (presentation starts at 5.30 pm)
Melbourne
When: Monday, November 17
Where: Westin Hotel
205 Collins Street
Time: 5 pm (presentation starts at 5.30 pm)
If you would like to attend either of these events, please contact Elissa Long on 02 9929 7533 or elissa.long@watterson.com.au.
About Planit
Planit provides independent software testing and systems assurance to maximise business and IT performance. By combining best practice software testing methodologies, people and tools, Planit provides thorough, efficient and economic testing which is aligned with organisations’ business strategies. Planit was originally established as a subsidiary of a UK company and, since an MBO in 1999, the company has grown substantially, with offices in Sydney and Melbourne and clients in Australia, New Zealand and the United Kingdom. Additional information about Planit is available at www.planit.net.au.
About The Planit Testing Index
The Planit Testing Index was initiated to provide a service to Planit’s existing clients and partners by producing valuable benchmark information on testing. In addition, Planit will make relevant information available to other Australian and New Zealand organisations wishing to know more about how companies in the research study plan, budget and execute their testing strategies. Participating organisations receive a free copy of the report executive overview.
Massive overspending in failed software projects costing $86.7 million yearly2007-10-17T18:00:00Zmassive-overspending-in-failed-software-projects-costing-86-7-million-yearlyAt a time when CIOs are crying out for more funding, a report has revealed Australia’s large organisations are bleeding software development projects at an average rate of $86.7 million* each year.
The inaugural Planit Testing Index, commissioned by independent, Australian software testing organisation, Planit, surveyed 131 large organisations in Australia (mostly corporations in the finance, insurance and telecommunications sectors, plus government organisations). Analysis was conducted on both the total number of projects commenced by respondents, as well as their most important project over the past two years.
Chris Carter, Planit’s managing director, is also the president of the Australian/New Zealand Testing Board (ANZTB) and secretary of the International Software Testing Qualifications Board (ISTQB). Carter says, according to the Planit report, more than half of all Australian software projects run over time and over budget.
“On average, companies start 38 projects annually, less than half of which (42 per cent) are completed on time and on budget, while six per cent are cancelled altogether,” says Carter. “At an average cost of $199,033 per week, projects not completed within the set timeframes are causing companies major budget blowouts.”
According to the Planit Testing Index, successful projects depend largely on management buy-in, quality staff and well-defined requirements. Of those projects completed on time and on budget, 78 per cent of respondents reported good or very good levels of management buy-in, 65 per cent rated the quality of staff as good or very good and 50 per cent felt the requirements definition was good or very good.
Carter agrees quality staff play a major factor in a project’s success, but says finding that staff is a real issue for companies as the strong economy and low unemployment rates combine to create a skills shortage.
“Organisations must invest large amounts of time and money into recruiting and retaining staff, or risk losing them to competitors,” he says. “While more than two thirds (69 per cent) of project work for the surveyed organisations was carried out by in-house resources, the skills shortage is forcing companies to also look at third parties as an alternative to employing staff on a full-time basis.”
The study revealed those companies with advanced testing techniques and methods successfully completed 60 per cent of their projects. This starkly contrasts with those organisations which have no planned or documented testing process and undertake testing in an ad hoc way; the latter group reported successful completion of just 29 per cent of their projects.
The Planit Testing Index showed that:
There is a direct link between the proportion of budget spent on test execution and a project’s success – companies spending less than 10 per cent on test execution completed only 13 per cent of their projects on time and on budget.
More than a quarter (26 per cent) of respondents still view testing as a “necessary evil”, while 11 per cent see it as either a cost to be minimised (6 per cent) or a low priority (5 per cent)
Almost three quarters of companies surveyed said they will increase their use of structured testing processes over the next 12 months, while 64 per cent will increase their use of testing tools
Companies are spending 19 per cent of their software project budgets on test execution
The average budget for “most important projects” is $15.9 million.
“The Planit Testing Index clearly shows that companies which undertake testing of their software projects, and plan for that testing from the beginning of a project, are more successful than those that don’t,” says Carter. “The Index also clearly shows we are losing millions of dollars each year through unsuccessful projects – yet still there are development teams and entire companies out there who treat testing as an after thought, if at all.
“Is this situation caused by developers afraid to expose their work to the cold light of day? By CIOs who would rather spend their budget on developing software – good or bad – rather than perfecting it? Or by boards and senior management who, ignorant of what a software project needs to be successful, will not release enough budget to cover testing? I believe until we start addressing the issue of testing and systems assurance we are crippling software projects in Australia and limiting our chances at ever being known as the clever country.”
The Planit Testing Index will be conducted on an ongoing basis.
About Planit
Planit provides independent software testing and systems assurance to maximise business and IT performance. By combining best practice software testing methodologies, people and tools, Planit provides thorough, efficient and economic testing which is aligned with organisations’ business strategies. Planit was originally established as a subsidiary of a UK company and, since an MBO in 1999, the company has grown substantially, with offices in Sydney and Melbourne and clients in Australia, New Zealand and the United Kingdom. Additional information about Planit is available at www.planit.net.au.
About The Planit Testing Index
The Planit Testing Index was initiated to provide a service to Planit’s existing clients and partners by producing valuable benchmark information on testing. In addition, Planit will make relevant information available to other Australian organisations wishing to know more about how companies in the research study plan, budget and execute their testing strategies. Participating organisations receive a free copy of the report executive overview.
This report represents the inaugural study in what we hope will become an annual exercise. Each year we intend to report on a standard set of metrics to describe the “state of the nation” for software testing. We will look at how it is changing, and reflect on the emerging challenges. We will also report on related software development practices, such as development methodologies used, project budgets, and the factors that influence the testing metrics: who holds budgets for software testing; which processes are used to determine budgets; and the justifications advanced in business cases for software testing.
*That figure is made up of an average 19 projects (52 per cent) per organisation that run a minimum of 25 per cent over time and/or 25 per cent over budget, and two projects per organisation that are cancelled.