Introduction

Testing applications is as old as software development and has always been an integral part of the process. However, independent testing services despite being offered by pure-play providers for long and large outsourcing providers for almost a decade is getting significant traction in the recent times. The critical mass built by the providers, interest of buyers in this offering, and the growth opportunity makes it an interesting service line for the providers, investors, and the buyers.

Everest conducted an outreach with major IT outsourcing providers including the global MNCs, large and medium Indian providers, and other low cost focused non-Indian providers to understand the adoption trends, their offerings, strategies, and challenges in testing services. This report focuses on key adoption trends, pricing/engagement models, reasons to outsource testing, challenges from buyers’ and providers’ perspective, need for innovation, and the road ahead for independent testing services.

Scope

• Overview of testing services
• Analysis of testing service adoption in terms of buyers’ concerns, vertical adoption, geographical adoption, challenges the providers face etc.
• Key innovation that will impact testing services
• Growth opportunities and challenges

Contents

This research is focused on providing an overview of the current state of testing services including the drivers behind offering of testing as an independent service, understanding the underlying reasons of buyers to outsource testing services, the challenges buyers and providers perceive in outsourced testing context, pricing models, offshore arbitrage, key innovations shaping the testing market, and the evolution of independent testing services. For example, the second section on adoption trends discusses buyers and suppliers perspective:

• Adoption trend across buyer size and geography
• Key drivers for the providers to offer independent testing services and buyer benefits
• Buyers perspective on key drivers for adoption and hindrances towards testing services
• Contribution of different industries, geographies, buyer size etc. in the revenue from testing services for the providers
• Pricing models, offshore arbitrage, and other deal characteristics