Outsourced Software Testing Market Analysis, Forecast 2032

Introduction

Software Testing is the process of executing a program or system with the purpose of finding errors, such defects or bugs. It is a part of the overall software development and maintenance life cycle, which is used to ensure that the software is fit for use and to detect errors before its release to the market. Software testing can be conducted either by in-house staff who are employed by the company to do the testing or by outsourcing it to a third-party organization that specializes in technology testing, who will conduct the testing on behalf of the company. Outsourced software testing is becoming increasingly popular among software innovators and developers, paving the way for an ever-growing market.

Market Size

The Outsourced Software Testing Market was valued at USD 3.56 Billion in 2022. The Outsourced Software Testing Market industry is projected to grow from USD 3.73088 Billion in 2023 to USD 5.28 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.02% during the forecast period (2023-2032). A major aspect driving this growth is the digital transformation initiatives undertaken by various companies to maximize their output. The digital transformation initiative typically requires software testing, which requires a significant outlay and is therefore outsourcing is being increasingly used.

Key Trends

The digitalization of businesses and increasing demand for automated quality assurance, is leading to more companies and organizations shifting towards outsourced software testing services. The growing need for mobile applications, which require integration with the cloud, is another driving factor resulting in higher demand for outsourced software testing. Also, companies are looking for cost-effective ways to test their software components and hence, they opting to outsource such services as a part of their cost-containment strategies.

Segment Insights

Based on the deployment type, the market is segmented into cloud and on-premise. The cloud deployment type segment is expected to register the highest growth during the forecast period, as cloud computing is rapidly being adopted by businesses and organizations across the world. The growing adoption of cloud computing is expected to drive the growth of the outsourced software testing market.

Regional Share and Insights

The Asia Pacific accounted for the largest share of the global outsourced software testing market in 2020, which on account of the increasing digitalization in the region. India is the leading market in the region due to the presence of a big pool of qualified engineers and technicians offering cost-effective services. In addition, the rising use of digital currencies, e-commerce, and mobile applications has significantly increased the demand for outsourced software testing services.

Key Market Players

The major players of the global outsourced software testing market includes Wipro Ltd, Cognizant, Accenture, Infosys Ltd, Hexaware Technologies Ltd., Tata Consultancy Services, Polaris Consulting & Services Ltd., Capgemini, Tech Mahindra Ltd., and HCL Technologies.

Competitive Insights

The global outsourced software testing market is highly competitive in nature and the companies are vying for larger market share by continuously introducing new features and services. Companies are also trying to increase their market presence through strategic acquisitions, partnerships, and collaborations.

Industry Developments

In an effort to increase their market presence, various companies are investing heavily in research and development activities to develop innovative software testing tools, in order to improve the effectiveness of software testing. In addition, the companies are also trying to increase their market presence through launching of new products and services. For instance, in October 2020, Wipro launched ‘Wipro CloudTest’ a fully automated cloud-based software testing platform. Similarly, in November 2020, TCS launched ‘QCoder’ a comprehensive quality assurance platform for testing and validation of digital products.

Overall, the growing digital transformation initiatives across the world, coupled with the increasing demand for automated quality assurance, is expected to drive the growth of the outsourced software testing market over the forecast period.