10 Smart Ways to Reduce Test Automation Costs

Test automation can get expensive, especially when you’re trying to scale. Many companies hesitate to invest because the infrastructure is unfamiliar territory. And once you start, costs can add up fast. 

In most cases, for initial testing, automation companies invest 25-35% of their total software development budget. But this budget can be reduced by up to 20% with a few smart techniques. But cutting expenses often leads to lower quality. However, with the right strategy, you can save money without compromising on performance.

The greatest opportunities for cost savings in test automation are found during the initial deployment and setup phases. In this post, we’ll explore how to minimize expenses from the very start.

But first, let’s understand what these costs. 

What is the Estimated Cost of Automated Testing?

Most test automation services companies provide automation costs based on test cases or regression cases. So if you have n number of cases, then the costs are: 

Phase	50 Test cases	250 Tets cases	1000 Test cases
Initial Setup	$25k	$60k	$150k
Year 1 Total	$100k	$250k	$400k
Ongoing Annual	$60k	$130k	$250k

These costs come from industry reports such a  IT Convergence (2026), testRigor TCO studies, and the World Quality Report. The World Quality Report highlights that maintenance can consume around 50% of test automation budgets. We used an estimated $50/hour rate for an automation engineer (Asia-adjusted) instead of the higher US rates $100+/hour to make the cost model more relevant.

Complete Breakdown of Automation Testing Costs

If you decide to implement test automation, the total cost is typically broken down into six main parts. While, ongoing maintenance dominates test automation costs, often consuming 40-70% of budgets due to script updates from UI/API changes, far outstripping initial setup 

• Maintenance costs are up to 40%
• Salaries for automation engineers is 20%
• 20% on building frameworks and writing scripts in year one.
• 10% on Cloud platforms and tool licenses.
• Flakiness & Environment Issues are up to 5%
• 5% on Time to get teams up to speed on tools.

Now that we understand what drives the costs, let’s see why reducing these costs matters.

Why Reducing Test Automation Costs Matters?

For startups and growing businesses, every dollar counts. High testing automation costs can slow down innovation, delay product launches, and limit competitiveness. Companies often face challenges like:

• Expensive in-house teams
• Long hiring processes
• Rising salaries in local markets
• The need for specialized skills

How to Reduce Automation Costs During Setup

Instead of sacrificing quality, you should find ways to optimize spending while maintaining strong automation standards.

1) Ask Initial Questions Before Implementing Test Automation

Before diving into automation, you should ask yourself and the team these key questions to fully understand the project scope and feasibility:

List the pain points in your current testing process and list down any: 

• Bottlenecks
• Inefficiencies
• Any high costs in Manual testing
• Time spent on repetitive tasks
• Frequent testing failures

List out the scope of automation and areas you want to implement on 

• Candidates for automation (e.g., regression, smoke, performance)
• Percentage of the overall test suite to be automated
• Select the automation focus first (UI or backend testing, or both?)
  

Consider all current software development practices.

• Current practices such as Agile, DevOps, or Continuous Integration (CI)
• Software release cycle (e.g., weekly, bi-weekly, monthly)
• Current test cycle time and defect detection rate
• No experience with test automation tools and frameworks?

List in Business objectives of automation

• Any desired outcome of automation? Faster releases? Fewer defects?
• Define key metrics for success (defect reduction, time savings)?

2) Automate High-Value Tests First

When setting up test automation, the best way to control cost is to automate only the areas that give the highest return. Focus on:

• Repetitive regression tests (same checks every release)
• Stable APIs (fewer UI changes, fewer failures)
• Cross-browser smoke tests (quickly catch major issues)

In actual avoid automating early

• Exploratory testing (because it is better done manually)
• Fast-changing / volatile UI screens
  

You can save up to 50% of automation cost by avoiding low-value scripts that break often and require constant fixing.

Simple Example

If your app has 100 test cases, Automate 30 stable regression + API tests → they run every release and rarely break

3) Choose Tools That Fit Your Tech Stack

Match tools to your stack to cut learning/maintenance time, poor fits cause 30-40% rework waste.​ Here is the complete list of top automation testing tools for you to choose from, according to your tech stack

4) Build Easy-to-Maintain Automated Tests 

When setting up test automation, design your tests so they are easy to update and reuse. This keeps maintenance low and saves time as the application changes.

• Page Object Model (POM) to keep UI locators and page actions in one place
• Reusable components (common login steps, navigation, form filling)
• Shared utilities for waits, validations, and data setup

Avoid fragile scripts that:

• Hardcode UI locators everywhere
• Repeat the same steps in every test
• Break whenever a button label or screen layout changes

Fragile scripts can increase upkeep costs by up to 60% because every small UI change forces multiple test fixes.

Simple Example

Instead of writing “login steps” in 50 different test scripts, the better approach is a Reusable Login Component.

• Create one Login() function/page object
• If the login page changes, you update it once, and all tests work again

This results in less maintenance, faster updates and more stable automation.

5) Integrate Test Automation with CI/CD for Instant Feedback

When setting up automation, connect your test suite with CI/CD pipelines (like Jenkins, GitHub Actions, GitLab, Azure DevOps) so tests run automatically on every build or deployment.

• Run automated tests in the pipeline after every code change
• Get instant feedback if something breaks
• Run tests in parallel to finish faster
  

Bugs caught late (in staging or production) can cost up to 100x more to fix than bugs caught early. Parallel test execution can speed up test runs by 5–10x, saving time and improving release speed.

6) Use AI-powered self-healing tools to reduce flakiness

Flaky tests are one of the highest hidden costs in automation because teams waste hours fixing tests that fail for reasons unrelated to real bugs (UI locator changes, timing issues, dynamic elements).

Use AI-powered self-healing tools (like Mabl) that can:

• Automatically update broken locators
• Reduce false failures
• Prioritize the most important tests to run first
  
  This can cut test maintenance effort by 80%, with fewer bugs by 40%, meaning less time spent fixing scripts and more time spent delivering quality.

Example:
A Login button changes from Login → Sign In.

• Without self-healing, multiple tests fail and need manual fixes
• With self-healing, the tool detects the change and adjusts automatically
  

7) Build Cloud-Based Testing Infrastructure

Instead of buying and maintaining physical devices and machines, use cloud testing platforms like BrowserStack to run tests on demand.
Move to cloud device/browser farms to:

• Run tests across many browsers/devices instantly
• Scale up only when needed (pay-as-you-go)
• Enable 24/7 testing across global teams
  

 Cloud testing eliminates:

• Hardware purchase costs
• Device lab setup and maintenance
• Time lost waiting for limited devices

 If you need to test on Chrome, Firefox, Safari + 10 mobile devices:

• On-prem lab expensive devices + upkeep
• Cloud farm runs everything in minutes without buying hardware

8) Test Critical Paths First

Prioritize Tests by Defect Risk and Critical User Paths (80/20 Rule). When setting up test automation, don’t try to automate everything at once. Instead, start with the tests that protect the most important business flows and have the highest risk of failure.

This follows the Pareto Principle (80/20 rule):
20% of tests can catch ~80% of the major issues

What to automate first (high impact)

Focus on:

• Critical paths (most-used customer journeys)
• High-risk areas (frequent changes, past bugs)
• Revenue-impacting flows (payments, checkout, subscriptions)
• Core system functions (login, search, order creation)

This way, you get maximum defect coverage with fewer tests. Less automation effort and less maintenance

9) Outsource initial setup with Specialists

When setting up test automation, outsourcing the initial setup to experienced specialists can help you start faster and reduce early mistakes.

Instead of building everything internally from scratch, you hire an automation partner to:

• Set up the automation framework
• Build the first batch of stable tests
• Integrate with CI/CD
• Define standards, reusable components, and reporting

Specialists use proven frameworks and best practices, so fewer rework cycles. You avoid trial-and-error learning costs. 3–6 months ROI with specialists vs. 12+ months internally (common when teams are learning + building together)

10) Use Humans Where Automation Falls Short

When setting up test automation, the smartest cost-saving approach is to use automation for high-volume repetitive testing and keep manual testing for areas where human judgment is needed.

Automation should cover:

• Regression testing
• Smoke and sanity checks
• Cross-browser/device coverage
• Repetitive workflows (login, checkout, form submissions)

Manual testing is better for:

• UX and usability feedback
• Exploratory testing (finding unexpected issues)
• Ad-hoc testing during frequent UI changes
• Visual validations and real user behavior checks

Automation reduces repetitive workload, while manual testing prevents wasted effort on scripts that are expensive to build and maintain.

A practical approach is to use a hybrid team model with a QA partner like Kualitatem:

• Automation team builds and maintains stable regression suites
• The manual QA team focuses on exploratory testing, UX checks, and new feature validation

You get cost-efficient coverage, faster releases, and better product quality without over-automating the wrong areas.

Want to reduce test automation costs without compromising coverage or quality?

Kualitatem can help you build a scalable, cost-efficient automation strategy from selecting the right tools and frameworks to setting up CI/CD, stabilizing flaky tests, and balancing automation with smart manual testing.

TL;DR

Test automation can become expensive fast especially when scaling. Most companies spend 25–35% of their software development budget on automation in the early stages, but with the right approach, you can reduce costs by up to 20% without sacrificing quality.

The biggest savings come during initial setup, by focusing on high-ROI test cases, building maintainable frameworks, using CI/CD + parallel execution, adopting self-healing AI tools, shifting to cloud testing, prioritizing critical user flows, outsourcing setup for faster ROI, and keeping manual testing where human insight matters most.