Outsourced Software Testing Market is projected to grow from USD 30.75 Billion in 2025 to USD 99.37 Billion by 2034, exhibiting a compound annual growth rate (CAGR) of 14.20% during the forecast period (2025 - 2034). Additionally, the market size for Outsourced Software Testing Market was valued at USD 26.33 Billion in 2024.
Rising demand for mobile and web applications and increased technological advancement are the key market drivers enhancing the market growth.
Figure 1: Outsourced Software Testing Market Size, 2025-2034 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Growing demand for mobile and web applications is driving the market growth
Market CAGR for outsourced software testing is driven by the rising demand for mobile and web applications. The demand for web and mobile apps for outsourced testing is significantly increasing in the market. A number of causes, such as the quick spread of smartphones, the rising reliance on digital platforms for daily tasks, and the expanding complexity of software structures, are responsible for this increased demand.
In order to guarantee the smooth operation, security, and general caliber of their online and mobile applications, businesses are now resorting to outsourcing software testing solutions. The requirement for comprehensive and stringent testing of mobile applications across a broad range of devices, operating systems, and network circumstances is a major contributor to the rise in demand.
Additionally, businesses in this industry that use outsourced software testing services gain access to cutting-edge infrastructure, specialized testing human resources, and an agile and scalable testing methodology. It helps them stay competitive in the ever-changing world of web and mobile application development, shorten time-to-market, and cut testing expenses. Therefore, during the projected period, these factors are anticipated to drive the market's expansion.
Technological developments in the market for outsourced software testing have completely changed the software quality assurance landscapes and allowed outsourced testing providers to offer testing solutions that are more accurate, thorough, and efficient. These developments have greatly improved the capabilities of software testing that is outsourced, enabling companies to produce software that is of the highest caliber and most dependable. Software testing outsourcing has entered a new phase of scalability and flexibility with the development of cloud-based testing platforms. As a result, it is anticipated that throughout the projection period, demand for outsourced software testing will increase due to the rising demand for mobile and web apps. Thus, driving the Outsourced Software Testing market revenue.
The Outsourced Software Testing market segmentation, based on type, includes hardware and software. The software segment dominated the market, accounting for the maximum of market revenue due to its vital role in different types of devices and systems, including those used in consumer electronics, automotive, healthcare, aerospace, and industrial automation. Testing is becoming more and more necessary to guarantee performance, safety, and dependability as the complexity and connectivity of embedded systems increase. The software testing segment frequently includes domains including consumer electronics, industrial control systems, medical device software, Internet of Things (IoT) device firmware, and consumer electronics.
The Outsourced Software Testing market segmentation, based on end users, includes BFSI, IT & Telecommunication, Retail, and others. The BFSI category generated the most income due to the industry's demand for thorough testing services. Within the BFSI sector, there is a growing need for effective and superior software testing solutions as banks and insurance businesses keep updating their digital products and modernizing their IT infrastructure. In addition, the BFSI industry requires a strict protocol for security testing, which includes data protection assessments, penetration tests, compliance audits, and vulnerability assessments. The identification and mitigation of possible cyber security vulnerabilities inside financial software applications and digital channels can be greatly aided by outsourcing testing vendors who possess knowledge of security standards and best practices relevant to the BFSI.
Figure 2: Outsourced Software Testing Market, by End User, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Outsourced Software Testing market area will dominate this market, owing to the highest number of software-developing organizations in the region. In addition, the growing number of technological innovations, skilled IT professionals, and a healthy regulatory environment will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: OUTSOURCED SOFTWARE TESTING MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Outsourced Software Testing market accounts for the second-largest market share due to increasing demand for the development of software, rise in cost-effective operations, and development of digital technologies. Further, the German Outsourced Software Testing market held the largest market share, and the UK Outsourced Software Testing market was the fastest-growing market in the European region.
The Asia-Pacific Outsourced Software Testing Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the rising IT sector and growing per capita disposable income. Moreover, China's Outsourced Software Testing market held the largest market share, and the Indian Outsourced Software Testing market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Outsourced Software Testing market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Outsourced Software Testing industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Outsourced Software Testing industry to benefit clients and increase the market sector. In recent years, the Outsourced Software Testing industry has offered some of the most significant advantages to medicine. Major players in the Outsourced Software Testing market, including HCL Technologies Limited, Logica, Hewlett Packard Enterprise, ThinkSoft, Larsen & Toubro Limited, Infosys Limited, Accenture Plc, Cigniti Technologies Limited, Sutherland Services, Inc., Mindtree, Capgemini SE, Tech Mahindra Limited, Atos SE, IBM Corporation, CGI Inc., Software Quality Systems, Wipro Limited, Amdocs, Cognizant Technology Solutions Corp, and others, are attempting to increase market demand by investing in research and development operations.
Rimni Strrt, Inc., a Russell 2000 firm. The company redesigned corporate software support in 2005 with the goal of improving customer satisfaction and reducing costs. The company still innovates today with its comprehensive IT services. Company's application, database, and technological software platform ]can be run, managed, supported, customized, configured, connected, protected, monitored, and optimized with the aid of its all-inclusive family of solutions.
Companies can invest in innovation, gain a competitive edge, support expansion, and get the most value from their enterprise software by utilizing its , unified solutions that leverage a follow-the-sun service architecture. In March 2023, a new outsourced service program called Rimni One was unveiled by Rimni Street. It offers a broad range of unified, integrated services for operating, managing, supporting, customizing, configuring, connecting, and safeguarding. The goal of Rimini ONE is to help companies of all kinds reduce expenses, boost efficiency, and gain peace of mind by outsourcing the management and upkeep of enterprise software.
Oracle Corporation is a multinational computer technology corporation located in Austin, Texas. In terms of both revenue and market capitalization, Oracle ranked as the third-biggest software firm ly in 2020. The company offers enterprise software products, including supply chain management (SCM), customer relationship management (CRM), enterprise performance (EPM), enterprise resource planning (ERP), human capital management (HCM), and cloud-engineered systems. It also sells database software and technology, especially under its brands. Oracle Cloud is a cloud computing service provided by Oracle Corporation that makes use of a network of data centers managed by Oracle Corporation to provide servers, storage, networks, applications, and services.
In February 2023, Oracle introduced Oracle Banking Cloud Services, a new line of cloud-native banking services. The services are intended to assist banks in meeting the demands of the modern digital banking environment and expediting their transition to the cloud. A suite of series that may be assembled and disassembled is Oracle Banking Cloud Services. It implies that banks have the freedom to select the services they desire and incorporate them into a solution that satisfies their unique needs.
HCL Technologies Limited
Logica
Hewlett Packard Enterprise
Larsen & Toubro Limited
Cigniti Technologies Limited
Sutherland Servies, Inc.
Mindtree
Capgemini SE
Tech Mahindra Limited
Atos SE
IBM Corporation
CGI Inc.
Software Quality Systems
Wipro Limited Amdocs
Cognizant Solutions Corp
March 2023: Cohesity and IBM announced a collaboration to address the critical need for data security and resilience in hybrid cloud environments.
April 2023: The Japanese IT corporation Fujitsu stated that it will be expanding its digital transformation (DX) consulting services throughout Europe. The company launched two new Near Response Centers (NRCs) in Estonia and Spain. The NRCs give customers easy access to highly qualified professionals who can help them with any issues related to digital transformation.
June 2023: Sonata Software, an international software development and modernization company, teamed up with SAP Commerce to assist businesses in quickening the pace of their digital transformation. Sonata Software's expertise in digital commerce will be combined with SAP Commerce, an expertise e-commerce platform, to provide clients with comprehensive e-commerce solutions. In order to give clients a consistent and tailored experience across several touchpoints and channels, this includes storefront design, implementation, and maintenance.
Hardware
Software
BFSI
IT & Telecommunications
Retail
Others
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2024 | 26.33 (USD Billion) |
| Market Size 2025 | 30.75 (USD Billion) |
| Market Size 2034 | 99.37 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 14.2% (2025 - 2034) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2024 |
| Market Forecast Period | 2025 - 2034 |
| Historical Data | 2019 - 2023 |
| Market Forecast Units | USD Billion |
| Segments Covered | Type, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | HCL Technologies Limited, Logica, Hewlett Packard Enterprise, ThonkSoft, Larsen & Toubro Limited, Infosys Limited, Accenture Plc, Cigniti Technologies Limited, Sutherland Services, Inc., Mindtree, Capgemini SE, Software Quality Systems, Wipro Limited, Amdocs, Cognizant Technology Solutions Corp |
| Key Market Opportunities | Rising investment |
| Key Market Dynamics | Increase in advanced technologyRising demand for mobile applications |
Frequently Asked Questions (FAQ) :
The Outsourced Software Testing market size was valued at USD 26.33 Billion in 2024.
The market is projected to grow at a CAGR of 14.2% during the forecast period, 2025-2034.
North America had the largest share of the market
The key players in the market are HCL Technologies Limited, Logica, Hewlett Packard Enterprise, ThoinkSoft, Larsen & Toubro Limited, Infosys Limited, Accenture Plc, Cigniti Technologies Limited, Sutherland Services, Inc., Mindtree, Capgemini SE, Tech Mahindra Limited, Atos SE, IBM Corporation, CGI Inc., Software Quality Systems, Wipro Limited, Amdocs, Cognizant Technology Solutions Corp.
The software category dominated the market in 2024.
The BFSI had the largest share in the market.
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Senior Manager Rashmi has more than nine years of experience in diversified sectors of the healthcare industry, including pharmaceuticals, diagnostics, medical devices, health care services, healthcare it, medical services, and managed care. she also has rich experience in food and consumer goods industry including beverages and nutrition. she has also handled projects across the length and breadth of business functions such as procurement and sourcing, business operations, supply chain optimization, market entry strategy, related and unrelated diversification, go-to-market strategy, opportunity analysis, need gap analysis, competitor analysis, target market analysis, and many others.
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