A small software company that is still in infancy but has good technical staff. Being small in size with limited budget we have to choose either of the following two ways to improve the quality of the product.

1. Software Testing
2. Software Inspection

The factors to be considered are reducing the cost, higher degree of user satisfaction and tight deadline. Provide logical arguments in either selection from the above.

I'd say #1. You can inspect all you want, but without testing it, you won't know if it works right, will you?