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

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 Market Trends

Healthcare to Witness the Highest Growth

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.