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CISQ Publishes the Cost of Poor Software Quality in the U.S.: A 2020 Report


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A new report by the Consortium for Information & Software Quality placed the cost of poor software quality in the U.S. at approximately $2.08 trillion in 2020.

Credit: Consortium for Information & Software Quality

The Consortium for Information & Software Quality™ (CISQ™), an IT industry leadership group that develops standards for automating software quality measurement, recently announced The Cost of Poor Software Quality in the U.S.: A 2020 Report. This report, which updates our 2018 report, aggregates publicly available source material to estimate the impact of poor software quality on the United States economy.

The report states that the cost of poor software quality in the U.S. was approximately $2.08 trillion in 2020, which includes the following:

  • Unsuccessful IT/software projects - $260 billion (up from $177.5 billion in 2018)
  • Poor quality in legacy systems - $520 billion (down from $635 billion in 2018)
  • Operational software failures - $1.56 trillion (up from $1.275 trillion in 2018)

The total cost of poor software quality compared to the total U.S. IT/software wage base of $1.4 trillion underscores the magnitude of the negative economic impact of poor software quality. "The losses due to operational failure in the US alone are staggering," said Dr. Bill Curtis, Executive Director of CISQ. "It just takes one major outage or security breach to eliminate the value gained by speed to market. Disciplined software engineering matters when the potential losses are at this scale."

 

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