Outsource Magazine Issue 33 - (Page 102)

This issue: managed software testing managed testing: the quiet, fast-growing teenageer? Software testing is a huge business and a source of great rewards for providers offering managed services – but where next? Rachael Stormonth and Dominique Raviart go in search of answers… W here our last column looked at one of the newer kids on the BPO block (social media outsourcing), this article turns its attention from BPO to Applications Outsourcing, to look at an activity that has quietly been one of the fastest growing areas for several years now: managed services around software testing. NelsonHall’s first research study on the software testing outsourcing market was published in Q1 2008; since then there have been significant developments in market demand and vendor capability. We should start with a quick definition: software testing is the activity undertaken to identify and reduce defects in software during the software development life cycle (SDLC). In the provision of “traditional” testing services, this activity is bundled in with software development, and performed by non-full-time testing professionals. With “specialist testing services”, testing in recenT ❛There hasyears been a significanT increase in demand for specialisT TesTing, wiTh some organisaTions, usually large enTerprises, awarding mulTiyear conTracTs for These services ❜ is done by a separate unit from the team that has developed the software, a unit that is typically comprised of dedicated testers. The focus is on standardising the way testing is delivered, with the application of best practices, and on achieving economies of scale by creating testing centres. Specialist testing services units use a systematic approach based on sourcing (away from onsite to testing factories), and on automation and tools usage (such as HP IBM Rational, , Compuware and open source). Specialist testing service providers have also introduced new service offerings such as performance testing and security testing. Third-party independent testing has been a fast growing business for some years now. To give one example of a vendor success story, Tata Consultancy Services’ testing services business achieved revenues of ~$890m in its FY 2013. Just four years ago, the unit’s revenues were around $320m – and this growth has been organic. Clients want to move away from using testing as a late-stage ‘go/no go’ decision support to services that help move apps into production faster. Adoption of Multi-YeAr testing ContrACts Clients want to both improve the way they conduct testing and also decrease the costs of functional testing. Rachael Stormonth is Senior Vice President, NelsonHall. She can be contacted at Rachael.stormonth@nelson-hall.com or via Twitter at @rstormonth 102 ●● ●● www.outsourcemagazine.co.uk http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 33

Keeping in Touch
Shaji Farooq
Manoeuvre the Maze of Cloud Confusion
E-Invoicing: Where Now and Where Next?
Rick Simmonds
Only Strong Leadership and Governance Can Deliver High Performance
A Healthy Development
Getting to We: Time for a New Negotiating Paradigm
NOA Round-Up
To Outsource or Not to Outsource
Big Data Hits HR
John Willmott
Show Us The Money!
GBS: a Game-Changer for Finance
Neil Pratley
Go East
The Talent Challenge
Top Ten
NelsonHall Round-Up
Online Round-Up
The Deal Doctor
Inside Source
The Last Word

Outsource Magazine Issue 33