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    Outsourced Software Testing Market

    ID: MRFR/ICT/10133-HCR
    100 Pages
    Rashmi Phumatia
    October 2025

    Outsourced Software Testing Market Research Report Information By Type (Hardware And Software), By Application (BFSI, IT & Telecommunication, Retail And Others) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2035.

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    Outsourced Software Testing Market Infographic
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    Outsourced Software Testing Market Summary

    As per Market Research Future Analysis, the Outsourced Software Testing Market is projected to grow from USD 30.75 Billion in 2025 to USD 113.49 Billion by 2035, with a CAGR of 14.20% during the forecast period. The market was valued at USD 26.33 Billion in 2024. Key drivers include the rising demand for mobile and web applications and technological advancements, leading businesses to outsource testing for improved quality and efficiency.

    Key Market Trends & Highlights

    The market is witnessing significant growth driven by various factors.

    • Market Size in 2024: USD 26.33 Billion; projected to reach USD 113.49 Billion by 2035.
    • CAGR during 2025-2034: 14.20%; driven by mobile and web application demand.
    • BFSI sector leads in revenue generation due to stringent testing requirements.
    • North America holds the largest market share, supported by a robust software development ecosystem.

    Market Size & Forecast

    2024 Market Size USD 26.33 Billion
    2035 Market Size USD 113.49 Billion
    CAGR 14.20%

    Major Players

    Key players include HCL Technologies Limited, Accenture Plc, IBM Corporation, Capgemini SE, and Cognizant Technology Solutions Corp.

    Outsourced Software Testing Market Trends

    Growing demand for mobile and web applications is driving the market growth

    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.

    The increasing complexity of software applications and the growing demand for high-quality software solutions are driving organizations to increasingly rely on outsourced software testing services to enhance efficiency and reduce operational costs.

    U.S. Department of Commerce

    Outsourced Software Testing Market Drivers

    Market Growth Projections

    The Global Outsourced Software Testing Market Industry is poised for substantial growth, with projections indicating a rise from 27.0 USD Billion in 2024 to 113.5 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 13.94% from 2025 to 2035. Such figures highlight the increasing reliance on outsourced testing services as organizations seek to enhance software quality and accelerate time-to-market. The market's expansion reflects broader trends in software development, where quality assurance is becoming an integral component of the overall development process.

    Cost Efficiency through Outsourcing

    Cost efficiency remains a pivotal driver in the Global Outsourced Software Testing Market Industry. By outsourcing testing processes, companies can significantly reduce operational costs associated with hiring and training in-house teams. This approach allows organizations to allocate resources more effectively, focusing on core competencies while leveraging the expertise of specialized testing firms. As the market is expected to grow to 113.5 USD Billion by 2035, the financial benefits of outsourcing testing are becoming increasingly apparent. Companies can achieve substantial savings while maintaining high-quality standards, which is crucial in a competitive landscape.

    Rising Demand for Quality Assurance

    The Global Outsourced Software Testing Market Industry experiences a robust demand for quality assurance as organizations increasingly recognize the importance of delivering flawless software products. With the market projected to reach 27.0 USD Billion in 2024, businesses are prioritizing testing to enhance user satisfaction and minimize post-launch issues. This trend is particularly evident in sectors such as finance and healthcare, where software reliability is paramount. As companies seek to maintain competitive advantages, outsourcing testing functions allows them to leverage specialized expertise, thus ensuring higher quality standards and faster time-to-market.

    Growing Complexity of Software Applications

    The growing complexity of software applications is a driving force in the Global Outsourced Software Testing Market Industry. As applications become more intricate, encompassing various functionalities and integrations, the need for comprehensive testing becomes paramount. Organizations are increasingly turning to outsourced testing services to manage this complexity effectively. By leveraging specialized expertise, companies can ensure that their applications perform optimally across diverse environments. This trend is expected to contribute to the market's growth trajectory, as businesses recognize the necessity of thorough testing in delivering high-quality software solutions.

    Technological Advancements in Testing Tools

    Technological advancements play a crucial role in shaping the Global Outsourced Software Testing Market Industry. The emergence of sophisticated testing tools and automation technologies enhances the efficiency and accuracy of testing processes. These innovations enable organizations to conduct extensive testing across various platforms and devices, ensuring comprehensive coverage. As the market evolves, the integration of artificial intelligence and machine learning into testing practices is likely to streamline operations further. This trend not only improves testing outcomes but also aligns with the projected CAGR of 13.94% for 2025-2035, indicating a shift towards more automated and intelligent testing solutions.

    Increased Focus on Agile and DevOps Practices

    The adoption of Agile and DevOps methodologies is significantly influencing the Global Outsourced Software Testing Market Industry. These frameworks emphasize collaboration and rapid iteration, necessitating a shift in testing strategies. Outsourcing testing functions allows organizations to align with these methodologies, ensuring that testing is integrated throughout the development lifecycle. As companies strive for faster delivery cycles, the demand for outsourced testing services that can adapt to Agile and DevOps environments is likely to increase. This trend reflects a broader movement towards more flexible and responsive software development practices.

    Market Segment Insights

    Outsourced Software Testing Type Insights

    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.

    Outsourced Software Testing End User Insights

    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)

    Get more detailed insights about Outsourced Software Testing Market

    Regional Insights

    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)

    OUTSOURCED SOFTWARE TESTING MARKET SHARE BY REGION

    Source: Secondary Research, Primary Research, Market Research Future 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.

    Key Players and Competitive Insights

    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.

    Key Companies in the Outsourced Software Testing Market market include

    Industry Developments

    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.

    Future Outlook

    Outsourced Software Testing Market Future Outlook

    The Outsourced Software Testing Market is poised for growth at a 14.20% CAGR from 2025 to 2035, driven by increasing demand for quality assurance and technological advancements.

    New opportunities lie in:

    • Leverage AI-driven testing tools to enhance efficiency and accuracy. Expand services to include cybersecurity testing for emerging technologies. Develop partnerships with cloud service providers to offer integrated testing solutions.

    By 2035, the market is expected to achieve substantial growth, reflecting evolving industry needs and technological integration.

    Market Segmentation

    Outsourced Software Testing Type Outlook

    • Hardware
    • Software

    Outsourced Software Testing End User Outlook

    • BFSI
    • IT & Telecommunications
    • Retail
    • Others

    Outsourced Software Testing Regional Outlook

    • {"North America"=>["US"
    • "Canada"]}
    • {"Europe"=>["Germany"
    • "France"
    • "UK"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {"Asia-Pacific"=>["China"
    • "Japan"
    • "India"
    • "Australia"
    • "South Korea"
    • "Rest of Asia-Pacific"]}
    • {"Rest of the World"=>["Middle East"
    • "Africa"
    • "Latin America"]}

    Report Scope

    Report Attribute/MetricDetails
    Market Size 202426.33 (USD Billion)
    Market Size 202530.75 (USD Billion)
    Market Size 2035113.49 (USD Billion)
    Compound Annual Growth Rate (CAGR)14.20% (2025 - 2035)
    Report CoverageRevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2023
    Market Forecast UnitsUSD Billion
    Segments CoveredType, End User, and Region
    Geographies CoveredNorth America, Europe, Asia Pacific, and the Rest of the World
    Countries CoveredThe 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 OpportunitiesRising investment
    Key Market DynamicsIncrease in advanced technologyRising demand for mobile applications

    Market Highlights

    Author
    Rashmi Phumatia
    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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    FAQs

    How much is the Outsourced Software Testing market?

    The Outsourced Software Testing market size was valued at USD 26.33 Billion in 2024.

    What is the growth rate of the Outsourced Software Testing market?

    The market is projected to grow at a CAGR of 14.2% during the forecast period, 2025-2034.

    Which region held the largest market share in the Outsourced Software Testing market?

    North America had the largest share of the market

    Who are the key players in the Outsourced Software Testing 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.

    Which type led to the outsourcing software testing market?

    The software category dominated the market in 2024.

    Which end user had the largest market share in the Outsourced Software Testing market?

    The BFSI had the largest share in the market.

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