October 17, 2024

A Definitive Guide to QA Outsourcing in Software Development

Elena Pashkovskaya

Technical copywriter

Outsourcing

Why, When, and How to Use QA Outsourcing in 2024 [Guide]

Elena Pashkovskaya

Technical copywriter

Outsourcing

Why, When, and How to Use QA Outsourcing in 2024 [Guide]

The quality of the software developed is not solely dependent on the developers. A significant part of the success is determined by the professionalism of the QA team. Maintaining an in-house team of QA engineers can be costly and unnecessary for startups or companies with short-term projects. With the increasing demand for external expertise, businesses are turning to QA outsourcing, which can bring significant benefits.

The outsourced software testing market becomes increasingly competitive, full of skilled candidates and diverse services. Today, we'll discover how QA outsourcing benefits businesses and how to choose the right service provider. Let's go!

Key Takeaways

  • The advantages of QA outsourcing include cost savings, high efficiency, use of modern technologies, flexibility, test diversity, and faster time to market. You also get access to the world's talents, a second opinion on your project from the external team, and quick bug fixes and releases.
  • You may need software testing outsourcing when your in-house team lacks expertise in QA, you have tight deadlines or budgets, or you have a short-term project. The outsourced team has a clear and unbiased vision of your software product. It can quickly identify and fix issues before they grow.
  • The key point in finding a reliable software QA outsourcing agency is conducting research on QA testing outsourcing agencies. Look at the company's testimonials and reviews, ask about their domain expertise and tools, and evaluate communication practices.
  • If you are looking for a software testing team, consider NEKLO as your QA testing outsourcing provider. We are open to collaboration and can fulfill a project of any size and budget without delays. Our seasoned QA engineers provide full test coverage and daily reporting.

QA Outsourcing Services in a Nutshell

QA outsourcing involves entrusting quality assurance and testing responsibilities to external experts through a third-party provider. This strategy is especially beneficial for companies without in-house QA teams or specialized expertise, as it grants access to top-tier talent at competitive rates.

By outsourcing, businesses can streamline operations by cutting recruitment costs, bypassing lengthy hiring processes, and flexibly scaling their QA efforts. This ensures high-quality software testing without the long-term commitment or overhead of growing internal teams.

The IT outsourcing market continues expanding and will show a CAGR of 8.48% in the next 5 years. So does QA outsourcing as an integral part of the bigger picture, with a projected value of $144.65 billion in 2031. Today, we will thoroughly examine every aspect of testing outsourcing, find out why it is popular, and learn how to choose the most suitable service provider. 

Common Questions Asked About QA Outsourcing

In the beginning, we'll swiftly glance through some questions that help us to better understand the domain and its trends.

What factors drive the demand for outsourcing software testing?

  • The growing demand for web and mobile applications
  • Increasing use of smartphones and the internet
  • The demand for businesses to seek cost-effective solutions
  • Growing need for innovative and technology-driven solutions
  • The rise of digital transformation initiatives

Is there some classification of QA outsourcing services?

All QA outsourcing services are generally divided into two main categories: general QA services and special QA services. General services refer to the typical testing tasks done regularly, like smoke tests, regression tests, integration testing, and more. Special QA services require more specific knowledge of the particular domain, system, or technology from the specialist, like AI or IoT testing.

General and special QA services

Who benefits from software testing outsourcing?

  • Startups who seek cost-effective solutions and expertise.
  • Small and medium-sized companies who may not have an in-house QA team.
  • Big enterprises who need advanced or specific tests and domain expertise.

QA Outsourcing Engagement Models

QA outsourcing services vary in scope, time, and resources you need to achieve your business goals. Careful estimation of the project's size, risks, budget for testing, and the ability to cover additional costs. Outsourcing engagement models define working relationships between the client and QA outsourcing agency, depending on the deliverables, scope of work, timeframe, and cost.

Engagement models are also different in scope, flexibility (in both cost and resources), and level of control. There are 5 widespread QA outsourcing models:

1. Fixed-price

The fixed-price model rigidly defines the scope of work, deliverables, and budget from the beginning of the project. Once set, these variables remain untouched or hard to change. 

Key characteristics: suitable for small and medium projects with a well-defined scope of work, projects with minimal risk, and ones with small budgets.

2. Dedicated Team

Dedicated team model means hiring the whole QA team that works solely on your project. It fits companies that want specific domain expertise but do not want to assemble an in-house team. 

Key characteristics: great for projects needing deep domain expertise, in case the client wants to have full control over the testing process, and for long-term projects.

3. Managed Services 

This model means hiring a testing team and management. They handle the testing project completely, starting with testing strategy and planning, execution, delivery, and post-launch assessment. 

Key characteristics: suits large projects, meets complex testing needs, minimal involvement from the client's side, team's full responsibility over the testing deliverables.

4. Time and Material 

The model means the client pays for the time and resources used for the project. 

Key characteristics: flexible scope of work, good for complex projects with floating scope of work, and without well-defined timelines, transparent payments.

5. Outcome-Based 

This model focuses only on the KPIs and deliverables. It is a result-driven model where the outsourcing agency is paid only for delivering fixed results, no matter the time or resources spent. 

Key characteristics: transparency, risk sharing, suitable for projects with clear and measurable goals.

Pros of QA Outsourcing

Advantages of QA outsourcing

Without the desirable outcomes and indisputable advantages of outsourcing, the QA outsourcing market wouldn't bloom. Let's see why companies hire third-party teams and how this translates into time and budget savings.

Affordability

The key advantage of software QA outsourcing lies in the significantly lower hourly rates for highly skilled engineers in other regions. This eliminates costs related to extensive staff training, employee benefits, insurance, human resources, and overhead. Additionally, companies can avoid extra expenses for licensing specialized tools and other parts of the testing infrastructure.

Efficiency

Software testing outsourcing brings superior testing methodologies, the ability to execute complex testing scenarios, and quality testing to your project. The outsourced team allows your developers to focus on core development processes, removing the need to create and run themselves. It helps meet project deadlines, increases development team efficiency, and allows issues to be fixed quickly.

Test Diversity

Your in-house team may have advanced knowledge of certain testing methodologies but no expertise in others. Outsourced software testing gives access to domain expertise and seasoned experts and enables the application of industry best practices. No matter the functional or nonfunctional type — smoke, performance, localization, security, compatibility, or accessibility testing — the carefully picked seasoned professionals can handle it all.

Flexibility

With QA outsourcing, you can scale the team up or down based on your business needs. You can adjust the scope and duration of the project as it progresses, ensuring efficient resource use. The collaboration can be paused and resumed as required. This adaptability prevents testing from becoming a bottleneck, providing seamless integration into the overall development process and allowing you to optimize costs and timelines.

Professional Approach

External QA team has experience with broad types of projects, domains, and more capacity to fulfill different types of projects. QA outsourcing allows you to hire engineers worldwide, the ones with vast expertise in your domain the domain your project is at, with different testing methods, and full with a better view of compliance and security practices. 

Faster time to market

An outsourced QA team can integrate testing from the start of development, preventing bottlenecks and streamlining the QA process. Early involvement helps catch and fix bugs faster, providing real-time updates to your in-house team. Companies can reduce project timelines and costs with QA teams available on demand. Parallel development and testing ensure quicker quality issue resolution and more efficient workflows, leading to faster deployment and a smoother path to market.

Potential Cons of QA Outsourcing

When you take employees from third-party providers, common concerns arise regarding reliability, security, and quality of services.

Security

Several security concerns can arise when outsourcing QA, particularly because the process involves sharing sensitive project data, intellectual property, and system access with an external vendor. The set of security best practices will help you to keep your data safe and secure while working with quality assurance outsourcing agencies.

Solutions:

  1. Choose vendors with strong cybersecurity policies and protocols, such as firewalls, encryption, and multi-factor authentication.
  2. Ensure that the outsourcing vendor and their employees sign comprehensive NDAs.
  3. Implement access control to limit access to sensitive data.
  4. Use encryption to secure your source code and other intellectual assets.
  5. Perform periodic security audits to ensure the outsourcing vendor complies with industry security standards.

Quality

Nowadays, reputation seems to play a greater part, and most companies strive to provide the best possible level of services to meet clients' needs. Variable quality seems to be an archaic concept, yet sometimes, you can still face it. A careful selection of software QA outsourcing companies will free you from worries, and we will show you how below.

Hidden Costs

Hidden costs in outsourcing, including QA outsourcing, can arise in several ways because of poor communication and misunderstanding, excessive testing and re-testing, etc. To avoid such situations, you should:

  • Create a well-defined agreement that includes clear deliverables, timelines, and costs, with transparency about any additional fees.
  • Maintain regular communication to stay informed about progress and potential changes to scope or timelines.
  • Thoroughly vet your outsourcing partner to ensure they have the required expertise, tools, and security protocols in place beforehand.
  • Use project management tools and regular reviews to track progress, quality, and any emerging issues that could lead to additional costs.

Team Location

Outsourced software QA engineers' remote work may raise concerns about the laws and QA standards in their countries of residence, time zone differences, language barriers, and cultural differences. No worries.

First, your outsourcing agency can discuss cultural fit and English proficiency beforehand. Additionally, a good point is to hire professionals from regions that are culturally close to the Western world, like Eastern Europe. The professionals there share the same values and have good knowledge of English to communicate seamlessly with the clients and fellow employees.

Second, time zone differences can be effectively compensated by scheduling regular meetings during overlapping working hours. It will bring clarity and transparency in communication, bypassing time zone differences.

Third, different standards. You can overcome this obstacle by listing in the requirements the proper tech stack, certifications, and competencies your future QA specialist must have. Globalization enables developers and QA engineers from different regions and countries to work on diverse projects with various rules and regulations. Therefore, outsourced software testing professionals generally have diverse experience regardless of location.

Overall, you can avoid all concerns and pitfalls by carefully choosing the outsourcing provider, clearly outlining your requirements, and communicating with the potential partners.

When Outsource QA?

Now, we'll examine common situations in which QA outsourcing is the best way to avoid high expenses and organize work effectively.

High-load Projects with Frequent Delivery Cycles 

Such projects require comprehensive testing and large teams. Staffing an in-house QA team might be costly and inflexible, so QA outsourcing meets your needs here. An outsourced team lets you save on project costs, scale up/down the team as needed during the project, deliver results on time, and release quality products. 

Tight Deadlines

When project deadlines are tight, hiring, training, and onboarding new QAs into your team is not an option. It takes a lot of time and effort, yet meeting the deadlines is the highest priority. Software QA outsourcing allows you to hire professionals with related experience quickly and complete product development on time.

Tip: although there is always a temptation to leave the testing and QA part to developers, do not take the bait. The development team may lack time and expertise for writing and running tests. A fresh look at the code is what QA testing outsourcing can provide.

Lack of In-House Expertise

If you don't have QA specialists of narrow expertise for your projects in your internal team, outsourcing software QA can bring them to you in a short time. No matter the difficulty, your outsourcing partner will find the best fit for your project. Whether you have particular technologies to test, like AI-based apps and IoT software, or need security and compliance QA, a worldwide pool of specialists is available to hire.

A quality assurance outsourcing company selects specific tools and technologies that meet your requirements, ensuring that the QA team will perfectly suit your tech stack. Additionally, you'll get access to advanced expertise and modern testing methodologies and tools.

Short-Term Project

If you have a short project, having an in-house QA team may be excessive. As the project timeline goes, such a team may face a lack of workload while its maintenance costs remain on your shoulders. When you have a small software product or want to concentrate on a particular testing type, like integration testing or API testing, referring to QA outsourcing services is better. It gives you team flexibility and the ability to change the team size without tangible extra expenses.

When Not To Outsource QA

Despite many benefits, QA outsourcing is not a magic wand. Far from a universal solution, it doesn't suit some projects or relieve security or intellectual property concerns. Sometimes, internal expertise is quite sufficient and even advantageous.

You probably don't need an outsourced software QA team when:

  • You have a highly specialized complex product.
  • The project implies high security or confidentiality, e.g. cybersecurity and data protection.
  • You want to retain full control over the security of your project.

And that's it! In all other cases, you can enjoy the benefits of QA outsourcing. With over 5,000 software testing companies available on Clutch, you'll surely find the right one in terms of cost, expertise, communication, and cultural fit.

Best Practices on How to Outsource Software QA

How to outsource software QA services: checklist
  • Read quality assurance outsourcing companies's reviews and take a look at fulfilled projects, expertise, and trustworthiness. Give priority to agencies with proven performance and flexible engagement models.
  • Learn about a company's industry-specific expertise (e.g., FinTech, Healthcare, eCommerce software testing). The company should be able to demonstrate experience in your industry through past projects and case studies.
  • Check the tools outsourced software testing engineers use for manual and automated testing, and check the team's skill set, including running particular test types, understanding of programming languages, etc.
  • Set clear expectations and use measurable criteria like feedback, metrics, and reports to effectively monitor and evaluate an outsourced QA team's performance. You can also do regular check-ins, use collaborative tools like Jira, Trello, or Slack, and incorporate risk assessments in evaluation.
  • Evaluate the communication practices of a QA outsourcing provider to ensure transparency and avoid costly miscommunication. Clear, structured methods such as regular updates, the use of project management tools, and regular meetings are vital for effective collaboration and project success.
  • Set KPIs for the QA team's work to evaluate the results and efficiency. The key metrics include test coverage, defect density, test execution time, automation rate, defect resolution time, and more.

Outsourced QA Team Roles

Roles Description When you need them
QA Engineer A person who runs tests to identify bugs and verifies program's correct performance. In every project requiring quality assurance outsourcing, the QA Engineer is a core team member. QA engineers can be found in every test team.
QA Lead Senior QA team member who creates test plans and strategies and handles the testing process. If you hire the whole QA team, the QA Lead will be a must for strategic planning and coordination.
Test Architect Responsible for strategic test planning, integrates testing into the CI/CD cycle, and develops automation framework. Test Architect suits best for large and highly complex projects that require a well-structured, scalable test strategy.
Automation QA Outsourced test automation specialist identifies areas where automated tests apply, selects proper tools, and runs them. Ideal for large or complex projects where frequent regression testing is needed.
Test Coordinator Usually hired for large projects. Helps departments and stakeholders to communicate. Best suited for complex projects with multiple testing teams or large-scale, distributed environments where coordination of efforts across different modules is critical.
Domain Expert Helps to prioritize tasks and stay focused on the most important. Hired for domain-specific projects. Essential in niche or domain-specific projects (e.g., healthcare, finance) where in-depth industry knowledge is required to test business-critical functions.
Test Documentation Specialist A person who manages all testing documentation and is responsible for its creation and transfer. Needed in large projects or regulated industries, where comprehensive test documentation is vital for compliance, quality control, or knowledge transfer.
Software Developers in Test (SDET) Involved in every step of software development. Creates automated test frameworks and implements test cases. This is important for large-scale projects or those involving continuous integration (CI) and continuous delivery (CD).
Test Environment Manager Works with infrastructure, including hardware, software, and network, for proper test management. This is crucial for complex projects involving multiple development, staging, or production environments.

Why NEKLO for QA Outsourcing

  • 15+ years of exceptional QA and software development outsourcing services delivery
  • Deep expertise in FinTech, eCommerce, Healthcare, and Education domains
  • A 5-star rating on Clutch and exceptional testimonials from our partners
  • 100+ experts in the team with 70% seniority level

Wrapping Up

The trend for QA outsourcing seems to last, as do outsourcing and outstaffing practices, as they prove to be reliable, cost-efficient, and flexible. Although hiring an external team might be concerning, proper agency selection and transparent communication lower risks to zero.

Need an external QA team for your project? Book a call, and we'll consult you on our QA outsourcing services and give you free estimates.