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Third-party Application Testing Services Reach Critical Inflection Point in Enterprise Awareness, says IDC

June 2011 by IDC

According to a new study by International Data Corporation (IDC), spending on discrete enterprise application testing services in Europe was over $2 billion in 2010 and is expected to rise to over $5 billion by 2015, representing a CAGR of over 19%.

"The approach to quality assurance (QA) across Europe is evolving from predominantly reactive application testing at the end of the software development life-cycle (SDLC) to driving validation into the front-end of the SDLC. This change in approach contributes to increased demand for discrete application testing services, as organizations seek to lower costs and optimize test efforts. The challenges of inadequate processes/methodologies, resources, and expertise and decreasing budgets push greater interest in considering a host of test delivery options," said Jennifer Thomson, research director, European Application Services.

European organizations are now more aware and readily opting for more innovative types of delivery, beyond test resource staff augmentation and more traditional testing models. Research underlines demand for project-based "transformational" test services as well as for QA consulting services as more organizations look to maximize the value derived from testing functions and practices. IDC also sees the gradual shift from tactical to strategic QA, with managed testing services using a shared test center of excellence (COE) or dedicated test COE gaining ground.

European organizations are still at the start of the journey towards QA transformation; many lack the right tools, methodologies/processes and consistency in approach. Consequently, many organizations are looking at and evaluating ways to improve test tool ROI, consolidate tool licenses, and drive improvements in test process efficiencies. "Testing service providers must strengthen their overall marketing. Application testing services are forecast to show strong growth across Europe and while the market is still fairly small, now is the right time to build brand strength to capitalize on opportunities for growth," said Thomson.

The study, European Discrete Enterprise Application Testing Services Market Estimate 2010 and Forecast 2011–2015, discusses the European market for discrete enterprise application testing services in 2010 and forecasts developments till 2015. The study presents IDC’s opinion on the key assumptions and market developments impacting and driving growth in this area.


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