Shift to Agile has increased testing frequency, not workload
The majority of software testing services (by value) are delivered in an Agile setup, with the remaining being delivered in a waterfall or hybrid setup. Agile models require consistent and frequent testing due to shorter release cycles. Yet the total testing workload remains comparable to traditional waterfall methods; it’s just distributed over the project’s duration in Agile.
Additionally, while Agile requires close collaboration between development and testing, it is not a barrier to outsourcing. The need for independent evaluation, specialised expertise and affordability can still prompt the selection of an independent service provider, thus implying a limited-to-marginally positive impact on the size of the market, given the shift in skillset (driving hourly rates).
Automation is replacing legacy manual test execution while increasing demand for specialist expertise
The increased complexity of software and the emphasis on more rapid release cycles have led to an increase in the use of automated testing and QA tools to keep pace.
Automation is largely replacing legacy manual test execution of highly repeatable functional tests (especially unit tests and regression tests); however, more complex nonfunctional tests require a human layer of expertise and as such have not yet been widely automated (particularly security and UX testing).
The true value of automation lies in its ability to increase the number and extent of tests that can be run in shorter time periods, aligning the testing and QA function more closely with Agile development. So while automation leads to increased productivity, these productivity gains are reinvested to expand the scope and depth of testing in terms of (a) greater volume of test coverage (more tests can be run in a shorter amount of time); (b) greater breadth of testing coverage (e.g. testing a web application across different browser versions, screen sizes); (c) greater depth by handling more complex scenarios (e.g. complex regression testing scenarios, performance testing) resulting in higher testing quality and a stable volume of testing workload.
The rise of automation has also shifted labour demand: there’s a reduced need for low-skill test execution roles and a heightened demand for specialists in test design, automation frameworks and analysis.
Overall, automation is a positive driver of the market; it is increasing reliance on outsourcing and leading to higher hourly rates.
Companies that make the investment to leverage automation in testing and QA (see examples of automation tools in Figure 4) are able to improve test coverage of code bases, reduce test cycle time and better detect defects before software is pushed live to production environments. Over 40% of organisations highlight it as one of the most important objectives to ensure test quality (see Figure 3).
