Continuing our series on financial risks, we’ll discuss potential losses caused by software quality issues—both during development and in future operations. These are situations that can compromise performance, lead to rework for developers, delay the final delivery, cause usability problems, and sometimes even result in operational downtime.
In projects with poor software quality, clients often end up spending more than expected to fix issues caused by development flaws. So if you chose your provider based on cost rather than quality, you may experience firsthand the old saying: “cheap is expensive.”
Compromised Software Functionality
One of the first issues to arise from poor software quality is the system’s inability to fulfill its intended function. This can happen even before the project is completed if it wasn’t built properly. Bugs may emerge during the testing phase, generating extra costs for fixes.
And that’s not to mention the cases where functionality issues appear while the client is already using the software—such as incorrect results or data loss. The financial risks in these scenarios depend on how much the faulty software affects operations. At that point, it’s not just about the cost of the system itself, but its side effects.
Poor UX Due to Low Software Quality
When we talk about user experience (UX), we’re dealing with people’s emotions and their willingness to use the software. If it’s a customer-facing app, discomfort or difficulty using it may drive users to competitors. In that case, poor software quality translates directly into lost revenue.
If it’s an internal system for employees, poor navigation and user experience can lead to reduced productivity. After all, a tool built to streamline internal processes but that ends up being difficult to use will inevitably hurt the company’s performance.
Software Quality and Its Impact on Security
Software quality is also crucial for ensuring security during its operation. Unauthorized access, data leaks, and vulnerabilities can result in lawsuits, system downtime, and lost clients. What’s more, with data privacy laws like Brazil’s LGPD on users’ minds, software security flaws can severely damage your company’s reputation.
Of course, software security is also influenced by factors like hosting, network configuration, and firewalls. But many aspects of security rely on algorithms written in code. If a system isn’t built with security in mind from day one, it’ll be much harder (and more expensive) to fix those vulnerabilities later.
In our next post, we’ll continue exploring software quality, focusing on the financial risks of poorly written code.
By Joana Kerr
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