As tech companies from around the world face the harsh reality of economic instability, related to high inflation and a worldwide recession, many find themselves forced to conduct mass layoffs. Namely, in the past few months—and even longer—we have seen many big-tech companies resort to mass workforce reductions as a way to cut expenses and streamline business processes.

One department that is constantly under threat is quality assurance, as tech companies often underestimate the importance of software testing in ensuring a high-quality product.

Just a few months ago, video game company EA laid off its entire QA team in charge of testing its game, Apex Legends, leaving it susceptible to various bugs and issues that have since been reported by users.

So, while layoffs may provide short-term relief for companies, they often result in a significant skills gap within the organization, leading to new—sometimes bigger—problems. Some of the main challenges tech companies are left to deal with after conducting layoffs are skill shortages, stagnation, and lower product quality.

To cope with these challenges, tech companies need a smart, reliable, and cost-effective way to bridge these gaps in QA teams. One such solution is QA outsourcing. By leveraging external expertise and resources from experienced third-party quality assurance providers, tech companies can bridge the skills gap, maintain product quality, and continue progressing towards their goals.

In this blog post, we will explore how tech companies can successfully navigate layoffs and drive growth. We will also discuss the various benefits of QA outsourcing and how this approach can be beneficial for companies not only as a short-term solution but as a long-term strategy as well.

But first, let’s look at some hard data.

Crunching the numbers: Which tech companies have been affected by layoffs (so far)?

Two people sitting opposite each other with onoe holding a clipboard and writing something

Hundreds of tech companies have conducted layoffs in 2023, so far. According to data collected from Layoffs.fyi, 715 tech companies have reduced their workforce, with layoffs affecting a total of 199,889 employees. To compare, last year there were 1,057 tech companies that laid off a total of 164,709 employees.

Here are just a few examples of tech companies that have conducted layoffs in the first half of the year based on the data above:

Paypal laid off 2,000 full-time employees—or approximately 7% of their workforce.
Shopify laid off 20% of its workforce, impacting more than 2,000 people.
Amazon cut 27,000 jobs, or 8% of its corporate workforce.
Lyft confirmed it would cut 1,072 employees, or 26% of its workforce.
Accenture announced that it plans to cut 19,000 jobs, or 2.5% of its workforce.
Atlassian laid off 500 employees, or 10% of its workforce.
Yahoo revealed that it would lay off more than 20% of its workforce by the end of year.
Dell announced layoffs that would impact 5% of its workforce, or 6,650 employees.
Coinbase cut 950 jobs, or about 20% of its workforce.

Other tech companies that have announced plans to downsize their workforce—or have already done so—include Meta, Zoom, Microsoft, Twitter, Salesforce, Vimeo, Roku and many more. These figures serve as a stark reminder of the extensive impact that layoffs have had across the tech industry.

In order for tech companies to navigate through layoffs as seamlessly as possible without any serious consequences on product quality, QA outsourcing is a great option.

How can QA outsourcing help tech companies bridge the skills gap and improve software quality?

Outsourcing QA services promises numerous benefits to tech companies undergoing layoffs or a restructuring of their internal work processes. Specifically, QA outsourcing is not only a great way to bridge the skills gap resulting from layoffs, but it can also improve software quality and QA processes substantially. Here are some advantages of QA outsourcing:

Flexible staffing models

Scale your workforce up or down as needed without committing to hiring a full-time engineer or team. As project requirements may vary, you may need a software tester with a specific skill set, for example, someone who specializes in accessibility testing or security testing, for just one segment of the project or for a limited time. In such cases, hiring a full-time engineer onsite would not be the smartest or most cost-effective option.

With a flexible and scalable QA staffing model, you can get coverage whenever and for whatever you need. Whether you’re planning to release a new feature, add a new functionality, or set up a new framework, you’ll find this model particularly useful.

Unlimited access to skills and expertise

Tap into the specific skills you need by partnering with a third-party QA provider who can immediately get someone suitable working on your project. For instance, at TestDevLab we have over 550 QA engineers, who are all ISTQB certified, with a mixed set of technical skills and expertise. This allows you to make use of staff augmentation to address skill shortages and fill critical roles faster while remaining agile and responsive to changing market conditions.

Lower costs, faster releases

Forget about the traditional costs of in-house staffing associated with recruiting, hiring, onboarding, training, and retaining employees, as well as various employee benefits. By outsourcing your software quality assurance needs to a third-party provider, you get the same or even higher quality of work as you would from an in-house QA team at a significantly lower cost.

In fact, according to Commit’s 2022 State of Tech Staffing report, 48% of HR leaders consider cost savings to be the top benefit of outsourcing, while 42% of CTOs believe outsourcing to be the key to fast scaling. Essentially, QA outsourcing saves you time and money, and allows you to scale your team to the right size. And if you’ve just undergone a round of layoffs, every second and cent matters.

Objective insights into software quality

Get an objective and unbiased view into the quality of your software. Outsourced QA engineers can identify potential issues and bugs that may be overlooked by internal teams due to familiarity. This independent viewpoint helps improve the overall quality and user experience.

Freedom to focus on core competencies

QA outsourcing gives you more freedom to focus on core competencies. By offloading software testing responsibilities to a trusted software quality assurance provider, internal teams can concentrate on product development, innovation, and other critical business areas.

Wide coverage of technologies, tools, and devices

Get access to a variety of testing resources without having to invest in them separately. For example, at TestDevLab, we have over 3,500 different testing devices that we can perform testing on, as well as specially designed testing laboratories for audio and video quality testing, battery and data usage testing, and location testing. Additionally, all of our quality assurance engineers have at least one ISTQB certification and are efficient in various tools and technologies.

You might be interested in: How We Test Applications in Motion: Introducing Our Mobile Laboratory

What to look for when choosing a QA outsourcing company?

There are numerous things you should take into account when choosing a QA outsourcing company:

Commitment to software quality assurance. Look for a QA service provider that eats, breathes, and sleeps software quality.
Wide range of tailored QA services. Check whether they offer a variety of QA services that can be tailored to your specific needs and circumstances.
Proven track record. Partner with a company that can demonstrate their competence and experience. Ask for relevant case studies and testimonials from past clients.
Certified quality assurance engineers. Work with quality assurance engineers that have an ISTQB certification, as it is evidence of their expertise in the field.
Extensive device coverage. Make sure you get access to a vast variety of test devices that are included in the price.
Custom-built testing solutions. Enquire about any unique testing solutions or tools that could provide added value.
Guaranteed confidentiality. See if they hold relevant ISO certifications and offer NDAs to ensure the security and confidentiality of your data.

Though the benefits of QA outsourcing are evident, effective communication, collaboration between teams, and clear expectations are essential for a successful partnership with a third-party QA company.

Introducing TestDevLab—Your trusted partner in software quality assurance

TestDevLab QA engineer performing software testing

As a software quality assurance company that has been in the industry for over a decade with a strong reputation and an extensive client base that include Fortune 500 and startup companies, we are confident in our ability to help companies reach their goals even when navigating layoffs and operating at reduced capacity.

Our workflow

To help tech companies successfully navigate layoffs, we have developed a streamlined workflow that ensures a smooth collaboration between all parties involved.

Initial call. We begin by scheduling a call with you to gain a comprehensive understanding of your product and specific testing needs. This allows us to tailor our approach accordingly.
Signing mutual NDA. We sign a mutual non-disclosure agreement (NDA) to ensure confidentiality and maintain the trust between us.
Defining requirements. We ask the important questions and actively listen to your needs. This enables us to precisely define testing requirements and develop a clear understanding of your objectives. If necessary, we can also conduct a proof of concept (POC) to showcase our capabilities.
Signing the contract. Once the requirements are defined, we agree on and sign a master service agreement and a statement of work.
Kickoff meeting. With the contract in place, we organize a kickoff meeting to officially commence the project. This meeting serves as an opportunity to introduce key team members, align expectations, and outline project milestones and timelines.
Check-ins and reviews. To ensure all testing requirements are being met, we provide regular check-ins and conduct comprehensive reviews throughout the project. This allows us to maintain an iterative approach, address any concerns promptly, and deliver optimal results.

Learn more about our workflow and why you should choose TestDevLab as your software quality assurance partner.

QA outsourcing: A choice or a necessity?

In times of economic uncertainty and impending layoffs, working with a third-party software quality assurance provider is not just a choice anymore, but a necessity. It is one of the best decisions tech companies can make for multiple reasons. It gives greater flexibility to companies looking to scale QA teams as needed, reduce resource-related costs, and utilize a wider range of skills and technologies. When choosing a software quality assurance provider, be sure to check out these tips that will help you onboard your new QA partner.

Are you looking for a reliable software quality assurance company that can help you successfully navigate through tech layoffs? At TestDevLab, we offer a wide range of QA services that can be tailored to your needs and project requirements. Contact us to learn more about us and our services.

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