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The economics of fixing defects early

The cost of a software defect rises the later it is caught. That single relationship is the economic case behind 'shift left', and behind designing quality in rather than testing it in.

Girder GroupSecurity Practice
November 12, 2025 · 5 min read

Key takeaways

  • Defects found late cost dramatically more to fix than those caught early (Boehm; NIST, 2002).
  • Inadequate software testing infrastructure was estimated to cost the US economy tens of billions of dollars a year (NIST, 2002).
  • Catching a defect in design or code is far cheaper than catching it in production.
  • Quality is designed in through review, tests, and clear interfaces, not inspected in at the end.

The cost curve

One of the most durable findings in software engineering is that the cost to fix a defect grows the later it is discovered. A requirements or design flaw caught during design is cheap to correct; the same flaw discovered in production, after it has propagated through code, integrations, and data, is far more expensive.

Barry Boehm's foundational work on software economics established the shape of this curve, and practice has reflected it ever since. The exact multipliers vary by context, but the direction never does: later is costlier.

A defect is cheapest to fix the moment it is created and most expensive once it reaches production. Everything about 'shift left' follows from that curve.

The scale of the problem

The cost is not only per-defect; it is systemic. A 2002 study commissioned by NIST estimated that an inadequate infrastructure for software testing cost the US economy on the order of tens of billions of dollars each year, and that a large share of that cost could be avoided by finding and fixing defects earlier in development.

That figure reframes testing and review from an overhead to be minimised into an investment with a measurable return.

Designing quality in

'Shift left' is the shorthand for acting on this curve: moving testing, review, and security consideration earlier, toward design and coding, rather than concentrating them in a final phase. The goal is to catch defects when they are cheap.

The deeper point is that quality is designed in, not inspected in. Clear interfaces, automated tests, code review, and security-by-design reduce the number of defects that ever reach the expensive end of the curve. Treating security and correctness as late-stage gates is precisely how the costly defects slip through.

Sources

  1. 1.National Institute of Standards and Technology (2002). The Economic Impacts of Inadequate Infrastructure for Software Testing. Planning Report 02-3.NIST / RTI
  2. 2.Boehm, B. W. (1981). Software Engineering Economics. Prentice Hall.Prentice Hall

Girder Group · Security Practice

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