One of the prerequisites of any organization is an unvarying sustainability in the dynamic and competitive industrial environment. Development of high quality software is therefore an inevitable constraint of any software industry. Defect management being one of the highly influencing factors for the production of high quality software, it is obligatory for the software organizations to orient them towards effective defect management. Since, the time of software evolution, testing is deemed a promising technique of defect management in all IT industries. This paper provides an empirical investigation of several projects through a case study comprising of four software companies having various production capabilities. The aim of this investigation is to analyze the efficiency of test team during software development process. The study indicates very low-test efficiency at requirements analysis phase and even lesser test efficiency at design phase of software development. Subsequently, the study calls for a strong need to improve testing approaches using techniques such as dynamic testing of design solutions in lieu of static testing of design document. Dynamic testing techniques enhance the ability of detection and elimination of design flaws right at the inception phase and thereby reduce the cost and time of rework. It further improves productivity, quality and sustainability of software industry.