More Than One-Third of Quality Assurance Spending Devoted to ‘Next-Generation Role’ in Digital Transformation—Everest Group | Press Release

No longer tasked with the mundane, innovative Quality Assurance teams are now playing a pivotal role in helping enterprises adopt emerging technologies without impairing existing operations.

In 2019 more than one-third of enterprise spending on quality assurance (QA) was devoted to next-generation technologies rather than traditional QA activities, representing a 23% jump in next-generation QA spending since 2017, according to Everest Group. Everest Group predicts the QA market will witness radical transformation in the next three to five years as enterprises address the challenges brought by the increasing industrialization of next-generation technology applications, such as Internet of Things (IoT), big data, cloud native, augmented reality/virtual reality (AR/VR), artificial intelligence (AI), and distributed ledger.

Recently, QA standards have been strained by enterprises’ adoption of Agile/DevOps methodology. For example, QA too often has been pursued as an afterthought rather than a strategic activity, and a focus on faster time-to-market has pushed QA to the back burner or made it a severely time-constrained activity.

“With next-generation applications becoming the fulcrum of enterprises’ competitive edge, quality assurance needs to take center stage,” said Yugal Joshi, vice president at Everest Group. “In the recent past, we’ve witnessed how even technology leaders like Google, Facebook, Amazon and GitLab have experienced QA shortfalls, underscoring the need for enterprises to transform the QA role and function.

“Gone are the days when QA is relegated to gathering quality metrics at the end of a process; QA must evolve to play a critical role as a process innovation engine. Next-generation QA teams not only need a knowledge of emerging technologies but also the skills and adaptability to contribute and innovate within more agile, inclusive and automation-led delivery models. This means organizations must redefine QA talent requirements, organizational structure, methodology and use of technology.”

Everest Group explores these findings in its recently published Application Services State of the Market Report, “Next-Generation QA Services – From Mundane Existence to Innovation Engine.” The report presents a comprehensive analysis of the next-generation QA services market.

Selected Highlights:

  • QA is increasingly getting embedded in development processes, exhibiting convergence of QA spend with development spend.
  • Within next-generation QA, cloud native, big data and IoT are the leading investment themes with more than a 60% share.
  • End consumer-centric industries—such as banking, financial services and insurance (BFSI) and healthcare—are leading the charge of adopting next-generation QA services to stand differentiated amongst peers and attract users.
  • North America and Europe lead in adoption of next generation QA services, largely because these regions also lead in increased next-generation technology adoption and policies geared toward consumer protection.
  • Enterprises recognize the evolving talent needs but are still exploring different means to achieve the desired level of talent readiness. Eighty-five percent of QA leaders believe up-skilling the existing talent base is an urgent requirement.
  • Service providers are currently not measuring up to emerging enterprise expectations for QA services; only 31% of enterprises are open to working with new QA providers.

***Download a complimentary abstract of the report***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at

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