All systems go: Growth will continue despite foreign companies dominating the industry

The Software Testing Services industry has grown over the five years to 2017. Outsourced testing services have experienced a surge in demand; nonetheless, rising business investment in software, increased adoption of cloud-based testing and growing reliance on outsourced IT services, in general, have sustained demand for onshore software testing services. The industry will experience growth over the next five years. Favorable movements in business performance and continued expansion of service offerings will drive demand for testing services. In addition, the practice of outsourcing testing services will continue to grow in popularity, as more software developers see the value in hiring a dedicated firm to handle testing...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
2.3%
Forecast Growth 17-22
Profit
Employment
22,281
Businesses
2,017
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Market acceptance of outsourcing testing and other IT-related responsibilities will drive industry growth
  • Domestic operators have increasingly focused on testing specific platforms or serving certain verticals
  • Software testing operators will continue to benefit from the steadily growing business sector
  • Industry Report - Industry Products Chapter

    Manual functional testingManual functional testing is by far the largest service provided by the Software Testing Services industry. As its name implies, manual functional testing is the process of workers manually testing software for potential defects. Typically, the tester assumes the role of the end-user, using all of the application's features to ensure the software performs as intended. The reason for the large share of industry revenue is two-fold. First, even if automated tests reveal no problems with an application, manual testing is still usually carried out to ensure nothing was missed. Secondly, manual testing provides insight into how it feels to use the software from a user perspective, something automated tests generally do not reveal. In ...purchase to read more.

    Additional Insights for the Software Testing Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Software Testing Services Industry are

  • Access to highly skilled workforce
  • Good project management skills
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Private investment in computers and software and Government consumption and investment in the Software Testing Services industry impact industry performance..

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    What's in this report

    What is the Software Testing Services Industry?

    This industry provides software testing services for clients, such as performance testing, stability testing, usability testing and security testing. This industry does not sell its own software, but it may use internally developed software to complete its testing tasks.

    Industry Products
  • Manual functional testing
  • Automated functional testing
  • Non-functional testing
  • Industry Activities
  • Manual functional software testing
  • Automated functional software testing
  • Non-functional software testing
  • Software development consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private investment in computers and software
  • Government consumption and investment
  • Corporate profit
  • Prime rate

  • Current Performance
  • Outsourcing and offshoring
  • Major markets
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Additional service offerings
  • Indian dominance
  • Table: Software Testing Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Software Testing Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Software Publishing
  • Movie & Video Production
  • Video Game Software Publishing

  • Key Selling Industries
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Software Publishing

  • Products & Services
  • Manual functional testing
  • Other
  • Automated functional testing
  • Non-functional testing
  • Chart: Software Testing Services Industry Products and Services Segmentation

  • Demand Determinants
  • Business demand
  • Consumer demand

  • Major Markets
  • Financial
  • Public sector
  • Media and telecommunications
  • Other IT
  • Other
  • Consumer packaged goods and retail
  • Chart: Major Market Segmentation for the Software Testing Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Software Testing Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Software Testing Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Software Testing Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Software Testing Services Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Crowdsourcing
  • The practice of obtaining needed services, ideas or content by soliciting contributions from a large group of people, particularly from the online community.
  • Service Oriented Architecture
  • A software and design principle in which two computing entities interact in a cross-platform manner.
  • Software-As-A-Service (Saas)
  • A software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Software Testing Services Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Software Testing Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Software Testing Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Software Testing Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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