Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Cabinet hands the Post Office a board, but not a bailout

      Cabinet hands the Post Office a board, but not a bailout

      5 June 2026
      In South Africa, the bundle is the new battleground

      In South Africa, the bundle is the new battleground

      5 June 2026
      Bash powers TFG online sales as group profit tumbles

      Bash powers TFG online sales as group profit tumbles

      5 June 2026
      Surplus groceries, straight from the browser - Still Good co-founders Lorenzo Parisi and Nabeel Gool

      Surplus groceries, straight from the browser

      5 June 2026
      What happens when AI no longer needs us to improve

      What happens when AI no longer needs us to improve

      5 June 2026
    • World
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
    • In-depth
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Talent and leadership » South Africa is losing billions to poor-quality software

    South Africa is losing billions to poor-quality software

    In an effort to save costs, local companies often fall for the low-quality code trap, writes Sergio Barbosa.
    By Sergio Barbosa10 November 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    The author, Sergio Barbosa

    South African businesses are losing billions of rands due to poor-quality software. And as the economy tightens and skills remain scarce, this is likely to get worse, forcing them to pay to fix avoidable problems and resulting in stalled growth.

    According to the Consortium for Information & Software Quality (CISQ), poor software quality cost US organisations almost US$2.1-trillion in 2020. The consortium found operational software failure to be the leading cost contributor, reaching an estimated $1.56-trillion in 2020, a 22% increase since 2018. The cost of unsuccessful development projects, meanwhile, reached $260-billion in 2020, which represented a 46% increase since the previous estimate two years before.

    These are truly staggering numbers amounting to around 10% of the country’s GDP that year. Unfortunately, South Africa is likely comparable, if not worse.

    When you commoditise software development and make decisions based purely on cost, the casualty is quality

    In an effort to save costs, local companies often fall for the low-quality code trap. Many will either outsource to low-cost development destinations, or they will just throw more and more developers at the problem. When you commoditise software development and make decisions based purely on cost, the casualty is quality. And too few leaders fully understand the implications waiting for them down the road.

    Even as a best-case scenario, organisations running on low-quality software will struggle to release new features, impacting their ability to deliver on customer expectations.

    If you are constantly fighting fires just to keep software running, there is no way you can expect to stay on schedule. Nor will you be able to respond to changing market conditions or the changing needs of your customer. Even if you manage to avoid the potential critical system outages, you are likely to experience complaints from frustrated customers. Companies are learning the hard way that software is as essential in the modern company as the sales function.

    Many companies believe they can solve the problems of low-quality code by adding more developers to the team, but this approach often fails.

    Seldom delivers

    In one case, a company was on a short deadline to roll out new features for its digital offering while they built their in-house developer capacity. However, they conflated the two objectives and they just kept hiring new developers. After 12 months, they still hadn’t launched the features. Throwing people at a problem seldom delivers. What they should have done is brought in a managed services team to deliver a minimum viable product and get them into the market. Then they could have taken the time required to build quality in-house engineering capabilities to take over refining product features.

    There are even examples of poor quality software putting the brakes on companies’ global expansion plans.

    You can’t build on creaky foundations. Code has a shelf life and, if it’s already poor quality, it will degrade even faster. Not only will it cost you to keep patching it, but while you spend all your efforts on keeping it limping along you are missing out on all the opportunities of building and deploying new revenue streams. The real threat is that when there are technology failures, it often happens in full public view and can end up costing far more than just a few red faces.

    • The author, Sergio Barbosa, is CIO of enterprise software development house Global Kinetic and CEO of its open banking platform, FutureBank

    Get TechCentral’s daily newsletter

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    FutureBank Global Kinetic Sergio Barbosa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleApple limits file-sharing tool used by protestors in China
    Next Article FTX hurtles towards bankruptcy

    Related Posts

    Smart ID card

    Home affairs’ R10 ID fee is forcing companies to rethink identity verification

    9 February 2026
    South African banks need a complete app overhaul - Sergio Barbosa

    South African banks need a complete app overhaul

    21 February 2025
    FutureBank Sergio Barbosa

    FutureBank selected for Mastercard Start Path programme

    13 February 2025
    Company News
    The real hurdle for South Africa's AI voicebots isn't the AI - 1Stream

    The real hurdle for South Africa’s AI voicebots isn’t the AI

    5 June 2026
    The real cloud challenge isn't adoption – it's doing it well

    The real cloud challenge isn’t adoption – it’s doing it well

    5 June 2026
    Payments Live returns to Johannesburg for 2nd edition

    Payments Live returns to Johannesburg for 2nd edition

    4 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Cabinet hands the Post Office a board, but not a bailout

    Cabinet hands the Post Office a board, but not a bailout

    5 June 2026
    In South Africa, the bundle is the new battleground

    In South Africa, the bundle is the new battleground

    5 June 2026
    Bash powers TFG online sales as group profit tumbles

    Bash powers TFG online sales as group profit tumbles

    5 June 2026
    Surplus groceries, straight from the browser - Still Good co-founders Lorenzo Parisi and Nabeel Gool

    Surplus groceries, straight from the browser

    5 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}