Procurement Market Intelligence Report
Software Testing Services
Sourcing Guide & Market Intelligence
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Software Testing Services Global Overview
Definition
Summary
Software testing services provide software developers with information into a program’s functioning prior to it being sold to end users for final usage. Various factors, such as performance, usability, stability, and security are tested and gauged through open alphas and betas, program language inspection, and automated debugging programs. Suppliers are usually classed as IT service providers or specialized software testing service providers.
This Report Includes:
- Program Testing Software
- Computer Systems Design
- Computer Programming Services
Not in this Report:
- Software Development
- Network Security
- Software Security
Global Software Testing Services Procurement Trends
Discover the top international trends affecting procurement in the global Software Testing Services market.
Warning Trends
The European Union’s Artificial Intelligence (AI) Act enters into force
- In August 2024, the European Union (EU) began enforcing its new regulation on artificial intelligence. Although EU legislation, the act will have a major effect on global technological companies operating in the AI space, similar to the General Data Protection regulation.
- The legislation aims to apply a risk-based framework to AI regulation, meaning different AI applications will be treated differently. The law applies a general ban for “unacceptable” uses, such as social scoring and predictive policing.
- For general-purpose AI models, companies will be required to comply with EU copyright law and intellectual property provisions, carry out regular testing, issue transparency disclosures, and implement adequate cybersecurity protections. For “high-risk” AI applications, such as autonomous vehicles, medical devices, financial services, and biometric identification systems, companies must meet stricter requirements in terms of risk-mitigation systems, documentation, human oversight, and cybersecurity.
- Companies that breach the AI Act may face fines ranging from 7.5 million euros or 1.5% of global annual revenues to 35.0 million euros or 7.0% of global annual revenues, whichever amount is higher.
- While the blanket ban on unacceptable systems entered into force in February 2025, most of the obligations do not take effect for a full year. In August 2025, requirements for general-purpose AI will come into effect, and in August 2026, obligations for high-risk AI systems will be enforced.
Neutral
GSA memo asks agencies to review consulting contracts
- The General Services Administration (GSA) recently issued a memorandum asking government agencies to review their consulting contracts with the ten highest-paid firms. The ten firms are Accenture PLC (Accenture Federal Services), Booz Allen Hamilton Inc., CGI Group Inc. (CGI Federal), Deloitte Touche Tohmatsu (Deloitte Consulting), General Dynamics Corporation (General Dynamics IT), Guidehouse Inc., Huntington Ingalls Industries Inc. (HII Mission Technologies), International Business Machines Corporation (IBM), Leidos Holdings, Inc., and Science Applications International Corporation, Inc. (SAIC).
- The memo states that agencies are strongly encouraged to cut non-essential consulting contracts, providing a list of those intended to be terminated by March 7, 2025. By April 19, 2025, agencies must submit their reviews of non-GSA consulting service contracts.
- According to the GSA, the ten consulting firms identified are set to receive $65.0 billion in fees in 2025. The Department of Defense (DoD) has stated its intention to terminate or descope contracts non-essential to the DoD’s purposes; some of the largest market players with high-value DoD contracts include Booz Allen Hamilton, Deloitte, and Accenture.
- According to the Government Accountability Office, in the fiscal year 2023, government agencies spent $478.0 billion on services, with the DoD accounting for $230.0 billion and non-defense agencies accounting for the rest. The DoD spent $21.3 billion on support, professional, and engineering and technical services, while non-defense agencies spent $21.4 billion on professional services, which includes consulting, training, and support services.
- The Department of Veterans Affairs (VA) initially cancelled 875 contracts (amounting to around $2.0 billion) but has currently paused efforts. However, contract terminations across most agencies are expected to continue.
Global Software Testing Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 2,660 |
| #2 Europe | 2,465 |
| #3 United States | 1,890 |
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2
Geography Drilldown - US
Average Cost of Software Testing Services
United States
2026 Market Pricing$15.00 to $XXX.XX
per hourAverage Price
Prices in the Software Testing Services market range from $15.00 to $XXX.XX, depending on Testing Type, Experience Level and Complexity. For example, lower prices are associated with Functional Testing ($15.00 to $100 per hour), whereas higher prices are associated with Security Testing ($20.00 to $150 per hour).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Software Testing Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Software Testing Services market, prices in the US have grown 2.3% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Software Testing Services
Total cost of ownership is Medium in the Software Testing Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Scope Changes may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Upgrades
Unforeseen
Scope Changes
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.1 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Market Share Concentration. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Manufacturers
- Software Publishers
- Computer Peripheral Manufacturers
- Data Processing & Hosting Service Providers
2nd
Tier Suppliers
- Semiconductor & Circuit Manufacturers
- Intellectual Property Licensing Firms
- Wire & Cable Manufacturers
- IT Consultants
Biggest Software Testing Services Suppliers in the US by Revenue
The largest Software Testing Services vendors by revenue in the US are Infosys Limited, Dxc Technology Co and Cognizant Technology Solutions Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Microsoft Corporation | Global | Redmond | >10,000 | < 5 | ||||
| Accenture Plc | International | DUBLIN | >10,000 | < 5 | ||||
| International Business Machines Corporation | Global | ARMONK | >10,000 | < 5 | ||||
| Oracle Corporation | Global | AUSTIN, CA | >10,000 | < 5 | ||||
| Broadcom Inc. | Global | PALO ALTO, CA | >10,000 | < 5 | ||||
| Sap Se | Global | WALLDORF | >10,000 | < 5 | ||||
| Cognizant Technology Solutions Corporation | Global | TEANECK, NJ | >10,000 | < 5 | ||||
| Dxc Technology Co | Global | ASHBURN, VA | >10,000 | < 5 | ||||
| Infosys Limited | Global | Bengaluru, IN | >10,001 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Software Testing Services market is 7.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Supply chain risk is low because vendors rely primarily on labor rather than materials, which are more sensitive to supply shocks.
Market share concentration is low in the software testing market with the top four vendors having less than 20.0% of total market share.
Vendors in the market face a moderate level of vendor risk as competition is high and and profit levels are moderate.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Accenture Plc
Accenture Plc is a public company operating internationally in the mining, information, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include mobile enterprise application platforms, claims management software,... Subscribe to learn more
Broadcom Inc.
Broadcom Inc. is a public company operating globally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include central processing units, transistors, database management systems, network security equipment, wireless access points. Founded... Subscribe to learn more
Cognizant Technology Solutions Corporation
Cognizant Technology Solutions Corporation is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include ai development services, business process outsourcing services, software testing services, cybersecurity consulting services, software... Subscribe to learn more
Dxc Technology Co
Dxc Technology Co is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include it consulting services, it systems integration services, it support services, software testing services, it hosting services. Founded in Subscribe to learn more
ELEKS Ltd.
ELEKS Ltd. is a private company operating globally in the professional, scientific & technical services sector. The company's offerings include software testing services. Founded in 1991, the company is currently headquartered in Tallinn, Estonia with an estimated 5500 employees. Subscribe to learn more
Infosys Limited
Infosys Limited is a public company operating globally in the information, finance & insurance, professional, scientific & technical services and educational services sectors. The company's offerings include robotic process automation software, business process outsourcing services, it consulting services,... Subscribe to learn more
International Business Machines Corporation
International Business Machines Corporation (IBM) is a global integrated computer technology, hardware, software, and services provider. It organizes its business into four segments: Software segment, which provides software solutions for a hybrid cloud platform, data and artificial intelligence, automation,... Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
Oracle Corporation
Oracle Corporation is a global technology company that provides enterprise information technology (IT) products and services. It comprises three businesses: the Cloud and License business, which offers Oracle Applications, Oracle Database, and Oracle Middleware software offerings, among others, deployed using... Subscribe to learn more
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Procurement Management KPIs for the Software Testing Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Pricing and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total Resolution Time Number of Resolved Tickets |
As software testing services requires collaboration and communication between buyers and service providers, a faster average resolution time will lower time and costs for the buyer. The average resolution time can also give buyers insight into the staffing availability and capacity of a vendor. |
| Customer Satisfaction (CSAT) |
|
Number of positive client testimonials Number of client testimonials |
Customer satisfaction is a strong indicator of the vendors' work quality. Low customer satisfaction greatly increases risk to the buyer as missed software issues may not be found by the buyer until customers report them. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Qualifications
How involved will your tenured and experienced staff members be on my project?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
Customer Service
What is the typical size of your clientele? Where do we fit into that? Does size determine how and by whom an account is managed?
How many clients does each account manager look after?
Competition
How do you attract new clients and retain ones? Do you offer any promotional discounts for new clients?
How do you compete with the emergence of smaller players into the market?
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Software Testing Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should provide proper and adequate description of their organization, including information about the nature of their work, number of employees, locations, and organization structure.
Buyers should provide a summary of the overall scope and purpose that their project is aimed towards accomplishing.
Statement Of Need
Buyers should describe the features and function of the application to be tested.
Buyers should explain the purpose of the tests.
Project Budget
If one exists, buyers should specify their budget for the desired screening services.
Buyers should define payment schedules.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
