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Industry Stats: Project Budgets and Allocations 2012

By Blake Young | Marketing Manager

INSIGHTS // Reports

8 Feb 2013

#BusinessAnalysis|#Environments|#Technologies

INSIGHTS // Reports

#BusinessAnalysis|#Environments|#Technologies

By Blake Young

8 Feb 2013

The quantity of projects represented in the 2012 Planit Index has increased by almost 20 percent over the past year, with the growth coming in the small budget category, up by 1,000 projects. This correlates relatively closely with the significant growth in maintenance projects, which recorded an increase of almost 1,500 projects.

Mid-range projects also grew, with over 600 projects being added to the $250k to $2m category, totalling 3,300 projects. Meanwhile major projects remain relatively level, with around 2,200 projects having a budget in excess of $2 million, 5 percent of which exceeded $15 million.

Similarly, there was only a small increase in the total number of new applications being developed, coming in at around 2,500 projects.

Planit Testing Index 2012: Project Budget Allocations by Project Size

 2012     2011    2010

Projects represented, by project size Projects represented, by project type

Planit Testing Index 2012: Budget Allocation Across Project Phases

When looking closer at project phases, we are able see an interesting shift in budget allocation. For the last five years, the Index has reported a steady share of budget allocated to software testing at 19 percent. In 2012 this has risen to 22 percent. While this may seem like a small change from previous years, it equates to a 16 percent increase in testing activity as organisations increase their emphasis on quality.

Planit Testing Index 2012: Benefits of Increasing Investment in Testing

The majority of respondents have realised significant benefits from an increased investment in software testing, including increased quality outcomes and reduced maintenance costs.

Interestingly, there was a sharp decline in respondents validating testing’s ability to speed up project delivery, which may indicate that extra time may not yet be factored in for the reported increase in testing effort.

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