Managed Testing Services Market Size (2024 - 2029)

The Managed Testing Services Market is experiencing growth driven by the increasing demand for quality assurance and testing as businesses expand and require robust applications across multiple units. This market expansion is supported by the need for expertise and resources that managed testing services provide, offering predictability, flexibility, and cost efficiency. The shift towards cloud-based technologies and the outsourcing of management functions to enhance operational efficiency further contribute to the market's growth. Additionally, the COVID-19 pandemic has accelerated the reliance on managed services due to the need for remote work solutions and continuous business operations, leading to a greater adoption of cloud services and digital transformation technologies.

Market Size of Managed Testing Services Industry

Managed Testing Services Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 302.53 Billion
Market Size (2029) USD 459.11 Billion
CAGR (2024 - 2029) 8.70 %
Fastest Growing Market North America
Largest Market North America
Market Concentration Low

Major Players

Managed Testing Services Market Major Players

*Disclaimer: Major Players sorted in no particular order

Managed Testing Service Market Analysis

The Managed Testing Services Market size is estimated at USD 302.53 billion in 2024, and is expected to reach USD 459.11 billion by 2029, growing at a CAGR of 8.70% during the forecast period (2024-2029).

Customers expect businesses to deliver personalized content and a consistent experience across all channels, so the emphasis on quality assurance and testing is increasing. As companies expand, it becomes more important and difficult to have business applications supporting multiple business units with sufficient maturity and robustness. This contributes to the growth of managed testing services.

  • Managed Testing Service (MTS) covers all parts of a testing project, including the whole testing process. Before beginning work, the service provider and customer discuss the project's action plan. Managed testing is useful when testing is complicated and needs to be coordinated by more than one party. All of this necessitates the expertise and resources that customers need to gain. Organizations prefer managed testing because it provides predictability, flexibility, and lower costs. Projects become easier to forecast and track when all testing licenses, activities, points of contact, and services are considered simultaneously. This shortens the project's timeline and makes it easier to calculate its costs.
  • However, a significant challenge for the market is the need for more skilled labor. Understanding customer requirements and applying the appropriate testing method necessitated specialized knowledge. This implies an increase in training costs for the companies. For this reason, emerging manufacturers and distributors of IT supplies are performing acquisitions and forming partnerships to replace a physical server with a virtualized environment. This reduced costs by approximately 15% while maintaining 95% uptime.
  • Managed services reduce downtime and duplication and offer customized value-added services like application testing, service catalog development, and expert consulting. Market growth is helped by different teams managing many monitoring tools and infrastructure layers. For instance, BMC recently launched the "BMC Helix ITSM," a centralized, cloud-native, observability-driven, and AIOps-integrated system. This system provides complete visibility into data from IT infrastructure, application performance, network performance, and cloud monitoring tools. Individual and team dashboards are also tailored to the needs of each user.
  • Market growth is driven by the increased use of cloud-based technologies like automation, IoT, blockchain, and cloud computing, as well as operational efficiency improvement by focusing more on core competencies. Also, managed services, which offer secure, custom IT solutions and applications hosting from start to finish, are expected to drive market growth. Moreover, the emergence of the COVID-19 pandemic disrupted business operations and the supply chain. As a result of the abrupt change in business operations and remote working solutions, employees needed access to various work applications on company-owned devices. During and after the COVID-19 pandemic, organizations began to rely more on managed services.
  • Also, managed services involve giving management tasks to a third party so business operations can run more smoothly. The introduction of cloud-based technologies and their proliferation have resulted in managed services. Managed services help businesses improve operational efficiency and lower operating expenses. The growing preference for outsourcing management functions to the cloud and managed service providers is expected to drive market growth over the forecast period.
  • Because of the COVID-19 pandemic, businesses put a lot of emphasis on working from home. The number of companies using cloud services has grown in the last few years. This is because companies wanted to ensure they could keep doing business even when governments put lockdowns in place to stop the spread of the coronavirus. Most companies have already renewed their contracts with managed cloud service providers because they expect enterprise cloud migration to become more common and, in some cases, gain momentum. Furthermore, as part of their efforts to encourage digital transformation, businesses and organizations strongly emphasized adopting the latest technologies, such as machine learning.

Managed Testing Service Industry Segmentation

Managed testing services are a type of service that a third-party provider offers to help businesses test their products. and provides a team of testers to aid in the software development process. They offer both software and hardware solutions for this purpose. Companies can use managed testing services for various purposes, including quality assurance, product development, and certification.

Every organization aims to deliver the best possible results while setting standards for a higher ROI. Managed testing services can help organizations identify risks and minimize them to increase the efficiency of a software product, whether it is web-based or mobile. The companies deliver it via an onshore or offshore delivery model to industries such as healthcare, BFSI, retail, and government.

The managed testing services market is segmented by type of delivery model (onshore, offshore), size of organization (small and medium enterprises, large enterprises), end-user vertical (healthcare, BFSI, telecom and IT, retail, government, other end-user verticals), and geography (North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Type of Delivery Model
Onshore
Offshore
Size of Organization
Small & Medium Enterprises
Large Enterprises
End-user Vertical
Healthcare
BFSI
Telecom and IT
Retail
Government
Other End-user Verticals
Geography
North America
Europe
Asia-Pacific
South America
Middle East & Africa
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Managed Testing Services Market Size Summary

The managed testing services market is experiencing significant growth, driven by the increasing demand for quality assurance and testing as businesses expand and require robust support for multiple units. Managed testing services encompass the entire testing process, offering predictability, flexibility, and cost efficiency, which are crucial as projects become more complex. The market is also benefiting from the rise of cloud-based technologies and the need for operational efficiency, with companies increasingly outsourcing management functions to managed service providers. The COVID-19 pandemic has further accelerated this trend, as businesses sought to maintain operations through remote work solutions, leading to a greater reliance on managed services.

In the healthcare sector, the digital transformation has prompted a surge in demand for specialized testing services to ensure compliance and interoperability across various technologies. Companies like Cigniti and Citius Tech are at the forefront, providing comprehensive testing solutions for healthcare applications. The North American market is particularly robust, with a growing emphasis on cybersecurity and the adoption of software-defined networking solutions in the telecom industry. The market is fragmented, with numerous players offering a range of services, from comprehensive IT solutions to specialized testing. Recent expansions and strategic partnerships, such as those by TestingXperts, highlight the ongoing demand for quality engineering and software testing services in the region.

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Managed Testing Services Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Adopting artificial intelligence (AI) and cloud management is eventually helping organizations meet various functional business requirements while driving business process optimization.

      2. 1.2.2 The growing preference for outsourcing management functions to cloud service providers and managed service providers is expected to drive market growth.

    3. 1.3 Market Restraints

      1. 1.3.1 The market's need for more skilled labor is a significant challenge. Understanding customer requirements and selecting the best testing method required specialized knowledge.

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type of Delivery Model

      1. 2.1.1 Onshore

      2. 2.1.2 Offshore

    2. 2.2 Size of Organization

      1. 2.2.1 Small & Medium Enterprises

      2. 2.2.2 Large Enterprises

    3. 2.3 End-user Vertical

      1. 2.3.1 Healthcare

      2. 2.3.2 BFSI

      3. 2.3.3 Telecom and IT

      4. 2.3.4 Retail

      5. 2.3.5 Government

      6. 2.3.6 Other End-user Verticals

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 South America

      5. 2.4.5 Middle East & Africa

Managed Testing Services Market Size FAQs

The Managed Testing Services Market size is expected to reach USD 302.53 billion in 2024 and grow at a CAGR of 8.70% to reach USD 459.11 billion by 2029.

In 2024, the Managed Testing Services Market size is expected to reach USD 302.53 billion.

Managed Testing Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)