Zoho’s project collaboration product and Basecamp-rival, Zoho Projects, is getting a much needed feature today: a Bug Tracking tool. Zoho Projects is a team collaboration and project management application that allows teams to plan, track and collaborate on everyday activities and big software projects with external customers.

Tracking software bugs and then prioritizing these bugs and fixing the issues are an integral part of the day-to-day workflow of any software project. Zoho Projects’ new Bug Tracking module allows teams to submit, track and fix software bugs.

With the new application, users have several ways to tell the team what and where the bugs are. These notifications can be conveyed via messages, screenshots, videos and more to help the developers fix the issue. Users can also indicate the source of a big within a software module and assign the bug to a particular developer in the project.

Users can also define rules that will enable them to organize the bugs and perform actions such as changing the severity, priority, module and assigning the issue to developer when there is a change in the bug status. The interface includes a Bugs list, which gives project leads a view of the bugs that have been recently opened, and offers filtering options (by status, owner, severity, etc). In addition, the list shows what changes each bug has gone through, by whom and when.

Zoho is offering the bug tracing module along with Zoho Projects (plus Wiki and Group Chat) for an annual price of $60 with regular pricing for Zoho Projects starting at $12 per month.

While Zoho faces stiff competition from enormously popular project management application Basecamp, the startup has been trying to spruce up its offering over the past year. Last fall, Zoho added Google Apps integration and launched a Project app in the Google Apps Marketplace earlier this year.

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