1.Software testers have to rely on other department/team to gather the required test data for testing. If there the standardized TDM is in practice, the dependency or waiting time for other team/department can be avoided and that time can be effectively used with some other productivity activities.
2.Spending more time on organizing and collecting data for every releases. If the test data is properly analyzed, masked, structured, formatted, generated, stored and maintained, more time is not the must to spend during every releases. At very first time only, more time (compare to later releases) can be spent out to do all arrangements (collecting data from various data sources and etc).
3.Test data creations gets more time than testing the product. Having automated tools to generate test data and having the reusable test data are important factors which a software development firm has to consider to reduce issues related to delay and quality. Using human resource to generate test data may lead to faulty data even because human may be tired and may not be consistent always, but automated tools do.
4.It is hard to manage the entire project when the project size is raised. This is because of more data to be analyzed, more places to be checked out to gather data and etc and have to put more time on test data masking. Having proper test data management along with automated tools to verify and check the test data is ideal way to get out of this kind of warning indication.
Read More : http://luke-developer.jigsy.com/entries/test-data-management/the-indicators-for-the-need-of-test-data-management