Melbourne, Australia (PRWEB) April 30, 2013
The Software Testing Services industry in Australia has had to endure a number of changes over the past five years. At the beginning of the period, the global financial crisis sparked a drop in business sentiment that led to conservative spending by companies. Software development was by no means immune to this, as the number of software development projects dropped. However, the rising popularity of non-traditional computer devices such as smartphones, tablets and video game consoles has raised interest in software development activities by many companies that have not previously been involved in software development. These companies do not have testers internally, and thus the industry has been able to capitalise on these new clients because they have a much higher preference for test outsourcing than other players that have been involved in the past. Furthermore, when these services were upheld, cheaper options were pursued. According to IBISWorld industry analyst Craig Shulman, “this raised interest in offshore testing services, which allowed companies to increase their profit margins”. Consequently, IBISWorld expects revenue to have increased at an annualised 1.7% over the five years through 2012-13.
IBISWorld expects that the Software Testing Services industry exhibits a medium level of market share concentration, with two major companies operating in the industry: Planit Test Management Solutions Pty Ltd and Capgemini Australia Pty Limited. “This level will be relatively volatile in the coming years as emerging technology may give new entrants an opportunity to enter the industry, while at the same time giving developed companies a chance to broaden their product offerings,” says Shulman.
Over the next five years, the industry is expected to grow more healthily. Rising business sentiment and technological improvement will increase the need and desire to invest in software testing. The introduction of the National Broadband Network is expected to accelerate this technological change. How testing is perceived and what tasks testers emphasise are also expected to change over the next five years. IBISWorld expects there to be a greater prioritisation of testing activities, particularly as development budgets increase and updates are required on a more regular basis. This will be due to technological change remaining high, leading to high rates of software upgrading, and security concerns heightening, leading to increased vigilance against the risk of cybercrime. Notably, the industry stands to benefit from a rising emphasis on automated testing as industry players will be expected to have a more rigorous process than many internal testing departments.
For more information, visit IBISWorld’s Software Testing Services report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry provides software testing services for clients, such as performance testing, stability testing, usability testing and security testing. The industry does not sell its own software, but it may use internally developed software to complete its testing tasks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.