A complexity dependency change impact system and method is disclosed. In one embodiment, a method of determining an efficient software testing scheme based on a dependency structure matrix (DSM) analysis includes generating a compressed DSM based on cyclic blocks associated with modules of a software application, tagging and levelling the modules of the software application based on the compressed DSM, and generating at least one compressed partition matrix based on the tagged and levelled modules. The method further includes generating at least one expanded partition matrix based on the at least one compressed partition matrix, generating value threads using the at least one compressed partition matrix and obtaining a new scheduling table and performing a path analysis using the value threads to determine the efficient software testing scheme.