Software Testing and QA Services Market, By Testing Type (Functional Testing, Non-functional Testing, Manual Testing, Automation Testing, Compatibility Testing, Security Testing, others), By Endpoint Interface (Mobile Testing, Web Testing, Desktop Testing, Embedded Software Testing, API Testing, Cloud Testing), By Organization Size (Small and Medium Enterprises, Large Enterprises), By Verticals (BFSI, Telecom and IT, Healthcare and Life Sciences, Retail and eCommerce, Manufacturing, Government and Public Sector), By Geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

Published In : Nov 2023

Code : CMI6412

Pages :160

Formats :

Excel and PDF

Industry : Information and Communication Technology

Market Challenges And Opportunities

Global Software Testing and QA Services Market Restraints:

Skill Shortages in Testing: The increasing pace of technology change has created a widening skills gap in software testing. There is growing demand for testers skilled in domains like DevOps, cloud, security, automation, AI etc. Building competencies in next-gen technologies requires significant training investments and time. Educational institutes are also unable to equip students with in-demand testing skills at the rate of change. The skill shortage in software testing impacts the speed of QA activities and acts as a key restraint for market growth.
Perception as Cost Center and Lengthy Process: While governance regulations are emphasizing software testing, some companies still perceive testing as an avoidable cost center that hampers the speed of software delivery. Complex or lengthy testing processes reduce the agility of DevOps initiatives. These perceptions result in the lack of executive buy-in, inadequate budget, and delays in testing activities – impacting market growth. There is a need to highlight ROI from software testing and adopt agile processes.
Complex and Dynamic IT Landscapes: The complexity of modern IT landscapes arising from technologies like cloud, IoT, microservices, etc. pose challenges for testing teams. The dynamic nature of systems and frequent changes also makes test maintenance difficult. Frequent version updates of devices, OS, and browsers further complicate testing. Lack of automated test environments, and cross-platform support are other challenges. These testing complexities act as a hindrance to the market growth. Companies need robust testing frameworks tailored for complex IT systems.

Global Software Testing and QA Services Market Opportunities:

Increasing Adoption of Test Automation: Test automation is gaining significant traction driven by the benefits of faster feedback, increased efficiency, and coverage in software testing. AI and ML are revolutionizing test automation through auto-generation of test scripts, intelligent test case prioritization, self-healing, and more. As per a survey, around 40% of organizations use AI in testing currently. The increasing adoption of test automation presents huge opportunities for software testing service providers to develop new AI-powered offerings for clients.

Growing Demand for Testing-as-a-Service: Testing-as-a-service (TaaS) model is gaining popularity driven by benefits such as usage-based pricing, faster deployment, reduced overhead, and leveraging external testing expertise. TaaS allows on-demand access to shared test environments, resources, data, and testing tools on the cloud. The pay-per-use model also helps in reducing the total cost of ownership. The growing demand for TaaS offerings provides major opportunities for specialized testing vendors.

Emerging Technologies such as IoT, AI, and Big Data: The adoption of emerging technologies such as IoT, AI, big data and analytics is growing across industries. This presents opportunities for testing companies to provide QA services for solutions built using these next-gen technologies. Testing of connected IoT ecosystems, intelligent algorithms, data security is complex and requires niche expertise. Software testing firms are enhancing their capabilities to capitalize on the new revenue opportunities presented by these emerging technology domains.

Geographic Expansion into Emerging Markets: Emerging countries across Asia Pacific, Latin America, Africa and Middle East are expected to see increased technology investments driven by economic growth. Global testing companies have significant opportunities to expand into these markets and partner with local companies for growth. Emerging regions have large talent pools which can help drive cost optimization. Geographic expansion into high growth emerging markets provides huge growth potential for the software testing and QA services industry.