by The Software Testing and QA Services Market is estimated to be valued at US$ 38.42 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Software testing and QA services help organizations validate software products and applications to verify they function as per intended use cases. These services test software for functionality, usability, performance and reliability to ensure no glitches remain. With growing digital transformation across industries, software testing and QA services assume greater importance in delivering error-free software to end-users.
Market key trends:
The increasing adoption of automation testing solutions is a major trend in the software testing and QA services market. Automation testing helps test functionality and integration of applications faster by reducing dependence on manual testing. It allows for testing of applications across various platforms and browsers in parallel to traditional QA cycles. Various automation tools are available which can design, execute and generate reports of test results. These tools save significant time and cost for organizations compared to only manual testing. With complex software requiring extensive validation, demand for automation testing solution is poised to grow in the coming years.
Porter’s Analysis
Threat of new entrants: New entrants face high initial costs to enter the Software Testing And QA Services Market. They also need to gain customer trust and recognition to compete with established players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many vendors providing similar services. However, switching costs are low.
Bargaining power of suppliers: Software testing service providers have low bargaining power as there are several freelancers and startups providing similar testing services.
Threat of new substitutes: Threat from substitutes is low as software testing requires technical skills that are not easily replaceable.
Competitive rivalry: High as the market comprises many global and regional players competing on factors like pricing, technical expertise and relationships.
SWOT Analysis
Strengths: Established global delivery model, strong domain knowledge, talented workforce.
Weaknesses: Low switching costs, dependency on client budgets, pricing pressures.
Opportunities: Growth in digital transformation, adoption of AI/ML, demand from verticals like Banking, Telecom.
Threats: Economic slowdowns, protectionist regulations, visa restrictions.
Key Takeaways
The global software testing and QA services market is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing demand for testing in Agile/DevOps environments and adoption of test automation.
The US market dominates currently due to large IT modernization programs. Asia Pacific is expected to grow at the fastest pace led by countries like India and China. India is a major outsourcing destination providing cost benefits for global enterprises.
Key players operating in the software testing and QA services market are TCS, Wipro, Cognizant, Infosys, IBM, Qualitest, CGI, Mindtree, Cygnet Infotech, Maveric Systems, QA Mentor, A1QA, QA Source, QASource, Capgemini, Accenture, HCL Technologies, Atos, DXC Technology, Tech Mahindra. TCS and Wipro captured the largest market shares in 2021, whereas regional players like Maveric systems and QA Mentor are rapidly expanding.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
