Revealing The Facts Of Global Software Testing Outsourcing Market

Software Testing Company UK

The demand for new, efficient, cost-effective software testing solutions has surged in today’s digitalized world, where software technology evolves rapidly. This trend has further fueled outsourcing software development, driven by the availability of technical solutions for various everyday challenges. These solutions can be easily accessed in just a few clicks, making outsourcing more convenient and widespread. Further, market research indicates promising growth for the global outsourcing testing market, with a forecasted CAGR of 10.8% between 2016 and 2020. Specialized QA services are expected to drive this growth in the software development and testing industry. 

Outsourcing is a longstanding practice initially focused on managing specific business processes off-site, such as customer support, accounting, and recruitment. However, a notable shift towards testing service outsourcing has recently occurred, especially among American and Western European companies. Talent shortages, high development costs, and intense competition in the job market have prompted these firms to adopt a cost-and-quality-driven approach. It is leading them to explore outsourcing opportunities in countries like India.  


In this blog, let’s reveal the facts and intricacies of the global software outsourcing market. 

Driving Forces For Success Behind Market Growth  

The time-to-market for software products has reduced due to the introduction of agile and DevOps methodologies. Furthermore, emerging technologies like artificial intelligence and machine learning are to blame for the explosion in cloud-based software testing services, intensifying the trend of outsourcing non-core business operations. As a result, the worldwide market for outsourced software is a booming sector expected to keep expanding. With businesses increasingly reliant on software applications for operations, the demand for dependable and cost-effective QA services is anticipated to remain robust, driving further expansion in the market. 

Step-by-Step Guide For Mastering Global Software Outsourcing

Clarify Your Objectives  

Decide the type of software you want, such as mobile, web, or desktop. Also, think about the tech tools and languages you prefer. Consult some reliable testing automation service providers if you need clarification on the tech choices. They have years of experience and exposure in developing and testing applications so that they can guide you through the process efficiently. Further, they know deeply about your audience’s needs and what they expect from your software.    

Selecting an Outsourcing Firm 

Decide on the country for your outsourcing partner. Search online for companies in that region. Check their website, focusing on their strengths, services, team, and past work. Look for experienced projects that is similar to your sector. Once you finish your list, contact them to schedule a consultation. 

Outline the Project Details 

In your first meeting, testing automation companies will ask about your goals, scope, content, and budget. So, be ready to provide clear answers, as they will utilize this information to make a suggestion.. You can then go over it and determine whether you want to proceed. 

Tracking Development Progress 

The development team will start working after agreeing on terms and signing contracts. They’ll update you on every stage, including design, programming, testing, and deployment. They might need your valuable input to meet your specific requirements, especially on the design part. 

Testing Of Software 

The final stage of the development process is application testing, during which the testing team of the software testing company UK thoroughly tests the product. They’ll check the application’s security, compatibility, usability, and performance and fix any issues found before the launch. 

Launching and Support 

Once everything is settled, they will help you launch the software on your chosen platforms, such as Windows, Mac, Android, or iOS. Further, they can provide ongoing support, including minor updates and significant patches. However, its duration depends on your project’s scope and budget. 

Essential Best Practices For Global Software Testing Outsourcing Market 

When outsourcing, you must ensure that the test automation company follows top-notch practices, including the latest testing tools and agile methodologies. Yet, with numerous companies, how do you decide? 

Assess the Trustworthiness of Your Outsourced Team

You should be cautious while selecting a company for software QA testing; ensure it is reliable and credible. Seek references if needed and review their past projects to gauge the quality of service and results. Beyond examining their track record for successful outcomes, verify whether they possess the necessary expertise for your project. A dependable testing service typically maintains test documentation and offers potential clients templates of their test artifacts. These test documents, case studies, and references enable you to compare top automation service providers 

Assess the Transparency and Communication of Their Process 

Influential companies prioritize transparency and communication throughout their interaction with you. When entrusting a company with your data, it’s crucial to feel confident in their handling of it. A communicative team offers reassurance by informing you about testing progress, especially when facing tight deadlines. For instance, specific testing platforms, such as Global App Testing, provide real-time results, empowering you to control the testing process and access raw data for effective communication with your team. This transparency fosters better solutions and thorough testing. 

Look for Specialized Expertise When Necessary 

If creating an app for a specific industry, prioritize software testing services with relevant experience. Not all software is equal, so choosing businesses that share your objectives is so essential. Different industries have unique risks, timelines, and technologies. Choose a provider that tests your application according to industry-specific norms and regulations. With numerous options for outsourced testing, invest time in finding a company tailored to your niche. 

Comprehend Their Capabilities and Constraints 

While an outsourced testing company may boast a stellar reputation, it inevitably has its constraints. Therefore, before engaging with an external team, assess your testing requirements. What are your preferred testing tools? What are their automation and manual testing capabilities? Understanding their available resources and limitations aids in selecting the optimal outsourcing service for your new software venture. 

Establish Strong KPIs Before Collaboration 

Regardless of a software testing company’s UK prowess, optimal service is attainable with measurable and achievable goals. Key performance indicators (KPIs) are crucial measurements for evaluating how well and quickly the testing process works. If you require assistance setting industry-specific KPIs, research and collaborate with the testing team you intend to work with to devise a plan.  

Some measurable KPIs for testing include: 

  1. Active Defects: Tracks the number of new, open, or fixed defects awaiting re-test, with acceptable defect thresholds based on past projects and industry standards.
  2. Automated Tests: Establish a target percentage of tests to automate, typically starting at 20% and adjusting based on experience.
  1. Tests Executed: A velocity KPI monitoring various software testing types.

Thus, these KPIs furnish you with essential data to determine the optimal launch time for your product. 

Software Testing Rate Comparisons Across Countries 

Here’s a brief overview of hourly rates, advantages, disadvantages, and key tech hubs in various regions: 

North America

  • Median annual salary: $110,140. 
  • The Average hourly rate is $55. 
  • Pros: Excellent English skills. 
  • Cons: Higher contracting rates. 


  • Median annual salary: £48,842 
  • Average hourly rate: £24 
  • Pros: High English proficiency 
  • Cons: Different time zone 

Asia & Pacific 

  • Median annual salary: $38,768. 
  • Average hourly rate: $19. 
  • Pros: Competitive rates for testing services, socio-economic stability, IT investments 
  • Cons: Time zone, cultural differences 


  • Median annual salary: $110,000 AUD 
  • Average hourly rate: $56 AUD 
  • Pros: High English proficiency, quality standards 
  • Cons: Time zone conflicts, relaxed work culture 
  • Main tech hubs: Sydney, Melbourne, Brisbane 


  • Median annual salary: $33,929 USD. 
  • Average hourly rate: $17.42 USD. 
  • Pros: Large pool of developers, English proficiency 
  • Cons: Time zone, cultural differences 

Eastern Europe 

  • Median annual salary: $108,680 USD 
  • Average hourly rate: $55 USD 
  • Pros: Abundant talent pool, compatible time zones 
  • Cons: Socio-economic instability, higher rates for software testing services. 

Latin America

  • Median annual salary: $88,920 USD 
  • Average hourly rate: $45 USD 
  • Pros: Large talent pool, popular technologies 
  • Cons: Complex taxation, political instability 

Wrapping Up 

Global software outsourcing has seen remarkable expansion, notably fueled by the COVID-19 pandemic. The pandemic expedited the transition to remote and hybrid work models, intensifying the demand for international third-party assistance on software testing initiatives. Global IT investment on corporate software is predicted to reach $517 billion USD, a 10.8% increase over the previous year. Consequently, digital transformation is emerging as a top agenda item for businesses across various sectors worldwide. This trend presents abundant opportunities for clients seeking software development partners to collaborate on innovative software products. 

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Co-Founder & Director, Business Management
AutomationQA is a leading automation research company. We believe in sharing knowledge and increasing awareness, and to contribute to this cause, we try to include all the latest changes, news, and fresh content from the automation world into our blogs.