There are several different consequences of releasing software that is not properly tested.  One consequence is the cost to repair a problem that is found after release versus finding and fixing the problem during the testing phase of a project.  The cost to fix defects rises the further into the project life cycle they are discovered. 

Another consequence of not properly testing your software is your company's reputation.  There is a troubling analogy to be made between software quality today, and the Auto Industry of the 1970's.

New features in cars such as power seats, power windows, automatic transmissions and A/C was increasing the complexity of the manufacuring process and the probability that something could go wrong. Quality Assurance experts such as W. Edward Demming went to Detroit in an attempt to get automotive leaders to adopt rigid quality standards. No one was interested.

Demming's Influence

Demming then went to the Japan where Japanese auto industry leaders listened. They implemented stringent quality assurance standards in their design, development, and manufacturing processes. So what happened? In the 1980s, the Japanese earned the reputation for having reliable and inexpensive cars. Sales soared and the American auto industry was left with more expensive, problem prone vehicles.

The same thing is happening today with software. In the boom years of the 1990's, software companies were more concerned with features than they were with quality. At a time when capital spending budgets seemed to be almost unlimited, corporations spent millions of dollars purchasing software that was suppose to reduce costs, improve productivity, and simplify processes. But after purchasing the software, in most cases thousands of dollars ($) was needed for implementation and to "get it to work right". Since the software was never properly tested in the first place, many companies found that features did not work as expected and that several patches were needed to fix problems that were never found before release.

Today, the boom years are gone and capital expenditures have shrunk dramatically. Cost cutting has become a way of life as corporations strive to maximize profits. Spending thousands, and in some cases millions of dollars on software that still may have flaws in it, is no longer an option. Software Development companies must now focus on releasing stable - defect free software, or risk loosing market share to the Software Development companies that choose to embrace Software Testing and Quality Assurance.  A small investment in a tool such as SmartTest not only can save your company money, it can also save it from embarrassing problems and a bad reputation.