UK manufacturers face costly software failures amid digital push

Research from Tricentis indicates that UK manufacturers are facing increased risks of expensive software failures in the year ahead.

The 2025 Quality Transformation Report, published by Tricentis, reveals that six in ten UK manufacturers expect to experience major software outages in the next twelve months. These failures are attributed to pressures to accelerate digital delivery, which have left quality assurance struggling to keep pace.

The report highlights the severity of the financial impact, with the UK's manufacturing sector ranking among the hardest-hit globally for software quality issues, second only to the US. More than half of respondents (53%) estimate that poor software quality costs their businesses between GBP £390,000 and GBP £773,000 annually. Nearly a third (30%) place their annual losses at over GBP £773,000.

The consequences of poor software quality extend beyond immediate financial loss. According to the research, 37% of manufacturers have experienced customer turnover as a result of software issues, 35% report mounting technical debt and maintenance costs, and 29% have faced increased security breaches or compliance failures. These risks collectively position manufacturing as one of the most affected UK industries, behind only the energy/utilities and financial services sectors.

Pressure on digital delivery

Tricentis found that 42% of UK manufacturers are prioritising quicker software development and deployment, aiming to respond swiftly to evolving market conditions and productivity goals. However, this focus on speed has put further strain on quality processes. The study outlines several critical challenges:

• 35% cite the demands of accelerated timelines as their principal barrier to maintaining high software quality.
• 23% identify poor communication between development and IT teams as a significant issue.
• 20% attribute software quality problems to unclear directives from senior management.

As a result, software testing is often neglected or completed with notable gaps, introducing the risk of defects, vulnerabilities, and expensive failures after deployment.

Testing gaps and code releases

The research uncovers that nearly three-quarters (72%) of UK manufacturers admit to releasing untested code, with almost half (48%) indicating that these releases happen unintentionally. Over four in five firms (81%) have delayed software releases because they lack confidence in their test coverage. Additionally, one in five respondents (20%) disclose that they are unsure what they should be testing at all.

Such findings illustrate the complexities and risks manufacturers face as digital systems become ever more embedded in their operations. The absence of robust testing not only increases the likelihood of costly failures but also undermines trust in software delivery processes.

Looking to AI and automation

To address these quality gaps, UK manufacturers are increasingly focused on AI and automation. According to the report, 95% of UK respondents intend to expand their use of AI in quality assurance over the coming year. All surveyed manufacturing leaders agree that autonomous testing will significantly transform their quality assurance processes. The most anticipated benefits are improved software quality overall (31%) and the ability to release updates more rapidly (30%).

The study shows that 80% of manufacturers are enthusiastic about implementing AI-driven automation, especially for repetitive tasks, which would enable teams to focus on more complex and strategic work. Notably, 66% express strong confidence in AI's ability to make autonomous software release decisions. However, fewer respondents - only 58% - strongly agree that their organisations currently have sufficient safeguards in place to manage potential risks, pointing to a gap between ambitions and effective governance.

"With manufacturing now deeply dependent on software to power automated and digitised operations, manufacturers can't afford to treat testing as a final checkpoint. The cost of failure has never been higher," said Andrew Power, Head of UKI at Tricentis. "While confidence in AI and automation is growing, lasting transformation only happens when quality is built in from design to deployment. That is the only way to cut risk, speed up delivery, and protect reputation."

The Quality Transformation Report draws from a global survey involving more than 2,700 professionals, including CIOs, engineering vice presidents, QA leaders, and DevOps practitioners across ten countries and five major industry sectors. It encompasses 539 responses from the manufacturing sector, with 139 participants based in the UK.