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Global Outsourced Software Testing Market 2016-2020

About Outsourced Software Testing

Software testing and application performances play a vital role in the growth of an enterprise. With growing technological complexities, software testing functions have become more challenging. Some of the common challenges include security issues, software sourcing problems, and high expenditure. Most software companies have in-house team for software testing, or outsource it to service providers. Outsourcing not only reduces overall expenditure for the company, but also aids them in making a strategic decision to conserve resources, make the best use of human resources, and achieve the business objective through operational excellence. Quality assurance (QA) and testing, a part of outsourcing, is optimum for companies looking to improve their production application quality, and reduce errors and risks through testing.

Technavio’s analysts forecast the global outsourced software testing market to grow at a CAGR of 10.8% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global outsourced software testing market for 2016-2020. To calculate the market size, Technavio considers the revenue generated from different outsourced software testing services such as unit testing, integration testing, end-to-end functionality testing, usability testing, system testing, performance testing, and load and stress testing.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Outsourced Software Testing Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Accenture
  • Capgemini
  • IBM
  • TCS
  • Tech Mahindra
  • Wipro
Other prominent vendors
  • Amdocs
  • Atos
  • CGI
  • Cigniti Technologies
  • CSC
  • HCL Technologies
  • HP
  • L &T Infotech
  • Logica
  • Mindtree
  • Software Quality Systems
  • Thinksoft Global Services
Market driver
  • Adding mobility solutions to enterprise businesses
  • For a full, detailed list, view our report
Market challenge
  • Lack of communication, collaboration, and reporting
  • For a full, detailed list, view our report
Market trend
  • Shift to business outcome-based metrics
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Outsourced Software Testing Market 2016-2020

Technavio recognizes the following companies as the key players in the global outsourced software testing market: Accenture, Capgemini, IBM, TCS, Tech Mahindra, and Wipro.

Other Prominent Vendors in the market are: Amdocs, Atos, CGI, Cigniti Technologies, CSC, HCL Technologies, HP, L &T Infotech, Logica, Mindtree, Software Quality Systems, and Thinksoft Global Services.

Commenting on the report, an analyst from Technavio’s team said: “Shift to business outcome-based metrics will be a key trend for market growth. Over the past five years, industries, such as telecom, automotive, manufacturing, and BFSI, have been increasingly shifting to business outcome-based metrics. Software vendors offer outcome-based pricing models to clients that guarantee pricing levels benchmarked to service performance. These types of models are offered to clients that have long-term relationships with the company, and where testing services have reached a stage in which outcome criteria can be defined clearly. Outcome-based services include the impact on end-customer satisfaction, revenue of clients, time-to-market, and test life cycles. TaaS is quickly growing in popularity as it meets the requirements of the evolving IT landscape dominated by cloud, big data, and mobility technologies.”

According to the report, adoption of specialized testing will be a key driver for market growth. The software testing industry has been undergoing a series of change in service offerings, business innovation, and engagement models. Companies are expanding their service portfolios from traditional functional testing to specialized testing following the popularity of SMAC technologies among enterprises. Security, mobile, Big Data, cloud, service-oriented architecture (SOA), SAP/Oracle, enterprise resource planning, and performance monitoring testing are the key focus areas for companies that build specialized testing teams. These technologies have become a value creator and feature differentiator for end products. The rise in test-driven developments has encouraged vendors to offer position testing as a stand-alone service that helps companies to create distinct value propositions at low costs.

Further, the report states that carrying out labor-intensive processes will be a challenge for the market. Maintaining the quality and availability of employable talent is a concern in the global software testing services market. Consistent investments in training employees as well as the systematic management of a growing talent pool are prerequisites for an industry's growth. To maintain a labor-intensive process, heavy investments are required to conduct activities, such as in-house training by offshore vendors and tie-ups with universities and training institutes. Implementing onshore and near-shore centers to tap the local talent available, creating test laboratories, and forming partnerships with tools or solution providers can pose challenges and adversely affect the market growth.

Companies Mentioned

Accenture, Capgemini, IBM, TCS, Tech Mahindra, Wipro, Amdocs, Atos, CGI, Cigniti Technologies, CSC, HCL Technologies, HP, L &T Infotech, Logica, Mindtree, Software Quality Systems, Thinksoft Global Services.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
      • Table Software testing life cycle waterfall model
    • Market size and forecast
      • Table Global outsourced software testing market 2015-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis\
  • Market segmentation by product
    • Product segmentation of global outsourced software testing market
      • Table Segmentation of global outsourced software testing market 2015
    • Outsourced embedded software testing market
      • Table Global embedded software testing market 2015-2020 ($ billions)
    • Outsourced standalone software testing market
      • Table Global outsourced standalone software testing market 2015-2020 ($ billions)
  • Geographical segmentation
    • Geographical segmentation of global outsourced software testing market
      • Table Geographical segmentation of global outsourced software testing market 2015
      • Table Geographical segmentation of global outsourced software testing market 2015-2020
    • Americas
      • Table Outsourced software testing market in Americas 2015-2020 ($ billions)
    • EMEA
      • Table Outsourced software testing market in EMEA ($ billions)
    • APAC
      • Table Outsourced software testing market in APAC 2015-2020 ($ billions)
  • Market drivers
    • Table Crowdsource testing life cycle
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
  • Vendor landscape
    • Competitive scenario
    • Other prominent vendors
      • Table Other prominent vendors
  • Key vendor analysis
    • Accenture
      • Table Accenture: Business segmentation by revenue 2014
      • Table Accenture: Geographical segmentation by revenue 2014
      • Table Specific testing services provided by Accenture
      • Table Recent developments
    • Capgemini
      • Table Capgemini: Business segmentation by revenue 2014
      • Table Capgemini: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table Capgemini: Geographical segmentation by revenue 2014
      • Table Solutions offered by Capgemini under its software testing and quality management
      • Table Recent developments
    • IBM
      • Table Product portfolio
      • Table Services categories of IBM
      • Table IBM: Business segmentation by revenue 2014
      • Table GTS segment by revenue 2013 and 2014 ($ billions)
      • Table GBS segment by revenue 2013 and 2014 ($ billions)
      • Table Solutions offered by rational testing tools
      • Table Recent developments
    • TCS
      • Table TCS: Business segmentation by revenue 2015
      • Table TCS: Business segmentation by revenue 2014 and 2015 ($ billions)
      • Table TCS: Geographical segmentation by revenue 2015
      • Table TCS: Market segmentation by revenue 2015
      • Table TCS: Market segmentation by revenue 2014 and 2015 ($ billions)
      • Table Solutions and services offered by TCS
      • Table Recent developments
    • Tech Mahindra
      • Table Tech Mahindra: Business segmentation by revenue 2014
      • Table Tech Mahindra: Business segmentation by revenue 2013 and 2014 ($ billions)
      • Table Tech Mahindra: Geographical segmentation by revenue 2014
      • Table Products and services offered by Tech Mahindra under testing
      • Table Recent developments
    • Wipro
      • Table Wipro: Business segmentation by revenue 2015
      • Table Wipro: Business segmentation by revenue 2014 and 2015 ($ billions)
      • Table Wipro: Geographical segmentation by revenue 2015
      • Table Recent development
  • Appendix
    • List of abbreviations
  • Explore Technavio

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