Outsourced software testing market to hit $30.46Bn by 2028

NEW YORK, UNITED STATES — The outsourced software testing market is forecasted to reach $30.46 billion in 2028, representing a compound annual growth rate (CAGR) of 14.41% in the next five years.

According to market research firm Technavio, key drivers fueling demand include the proliferation of mobile and web apps, increasingly complex software, and growing reliance on digital platforms.

Companies are leveraging outsourced providers to ensure the mobile and web app functionality, security, and quality. The agile, scalable approach enables accelerated release cycles, lower costs, and a competitive edge.

However, data security and privacy concerns hinder adoption, prompting investments in strong measures to regain client trust. Outsourced testing providers also obtain relevant certifications and demonstrate data privacy regulation expertise to address these challenges.

The outsourced embedded software testing segment held the largest 2018 market share at $15.12 billion, encompassing firmware testing, drivers, protocols, and system integration. 

The banking, financial services, and insurance (BFSI) sector also claims a significant position, driven by stringent security testing standards within financial institutions.

By region, North America is poised to contribute 40% of total market growth, thanks to its abundance of skilled testing professionals, culture of innovation, and strong regulatory environment.