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:
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.
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.
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