EXCERPT Asian Businesses to Heighten Spend on … · Asian Businesses to Heighten Spend on...

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Filing Information: November 2013, IDC #AP2578211V, Volume: 1 Asia/Pacific IT Services Opportunities: Excerpt EXCERPT Asian Businesses to Heighten Spend on Application Testing as Impact of Third Platform Prabhitha Sheethal Dcruz Mayur Sahni Excerpted from Asian Businesses to Heighten Speed on Application Testing as Impact of Third Platform, by Prabhitha Sheethal Dcruz and Mayur Sahni, IDC doc#AP2578211V, November 2013 IDC OPINION Traditionally, IT ran its legacy applications based on its existing models and there was minimal interference or requirements from business users, as long as the application did what it was supposed to. However, two key things have transpired in the past 1824 months: Asian businesses have been on their journey to the adoption of Third Platform technologies (cloud, mobility, Big Data, and social media) focused on various business objectives increase revenues, better customer experience, new market acquisition, launch on new products or services, cost optimization, risk management, and so forth; which, in turn, have placed a high level of importance on application modernization and transformation of the core IT stack. As a result, most new applications are being developed with a mobile first approach with an intrinsic service-oriented architecture (SOA) focus on cloud delivery, and the need to support real-time analytics. Competitive barriers are flattening, and the crux of competitive advantage relies on the ability of IT to deliver the applications right and in the first attempt. IT departments now need to bring together multiple elements, including robust application performance, great business and customer interactivity, ubiquitous access, and speed of deployment. Therefore, CIOs need to ensure that their application development road map is well in tune with changing business processes and are least one notch higher than their next best competitor. Discussions carried out by IDC reveal that testing did not get its due respect from the board. CIOs agree that cost of failure is higher than the price of success, and therefore are looking to allocate "that additional dollar value" toward testing. Yet, this does not let them address quality holistically and failures are inevitable. IT departments are facing mounting pressure to restructure and transform their quality assurance (QA) processes to ensure quality holistically while enabling speed to market and reducing costs. There is increased adoption of cloud delivery testing services that help reduce upfront investments, offset the lack of resources in-house, and enable speed to market while taking advantage of vendors IP. However, testing- as-a-service (TaaS) is not the panacea. Another area of emphasis is security and compliance to industry. Global Headquarters: 5 Speen Street Framingham, MA 01701 USA P.508.872.8200 F.508.935.4015 www.idc.com

Transcript of EXCERPT Asian Businesses to Heighten Spend on … · Asian Businesses to Heighten Spend on...

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Filing Information: November 2013, IDC #AP2578211V, Volume: 1

Asia/Pacific IT Services Opportunities: Excerpt

E X C E R P T

A s i a n B u s i n e s s e s t o H e i g h t e n S p e n d o n Ap p l i c a t i o n

T e s t i n g a s I m p a c t o f T h i r d P l a t f o r m

Prabhitha Sheethal Dcruz Mayur Sahni

Excerpted from Asian Businesses to Heighten Speed on Application Testing as

Impact of Third Platform, by Prabhitha Sheethal Dcruz and Mayur Sahni, IDC

doc#AP2578211V, November 2013

I D C O P I N I O N

Traditionally, IT ran its legacy applications based on its existing models and there was

minimal interference or requirements from business users, as long as the application

did what it was supposed to. However, two key things have transpired in the past

18–24 months:

Asian businesses have been on their journey to the adoption of Third Platform

technologies (cloud, mobility, Big Data, and social media) focused on various

business objectives — increase revenues, better customer experience, new

market acquisition, launch on new products or services, cost optimization, risk

management, and so forth; which, in turn, have placed a high level of importance

on application modernization and transformation of the core IT stack. As a result,

most new applications are being developed with a mobile first approach with an

intrinsic service-oriented architecture (SOA) focus on cloud delivery, and the

need to support real-time analytics.

Competitive barriers are flattening, and the crux of competitive advantage relies

on the ability of IT to deliver the applications right and in the first attempt.

IT departments now need to bring together multiple elements, including robust

application performance, great business and customer interactivity, ubiquitous

access, and speed of deployment. Therefore, CIOs need to ensure that their

application development road map is well in tune with changing business

processes and are least one notch higher than their next best competitor.

Discussions carried out by IDC reveal that testing did not get its due respect from the

board. CIOs agree that cost of failure is higher than the price of success, and

therefore are looking to allocate "that additional dollar value" toward testing. Yet, this

does not let them address quality holistically and failures are inevitable.

IT departments are facing mounting pressure to restructure and transform their quality

assurance (QA) processes to ensure quality holistically while enabling speed to

market and reducing costs. There is increased adoption of cloud delivery testing

services that help reduce upfront investments, offset the lack of resources in-house,

and enable speed to market while taking advantage of vendors IP. However, testing-

as-a-service (TaaS) is not the panacea. Another area of emphasis is security and

compliance to industry.

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As such, IDC advises CIOs to look at testing in a more holistic manner and seriously

consider third-party services for services under delivery models that are appropriate

for their business. Here, preference should be with those firms that have built their

Testing centers of excellence (COEs) with a mix delivery and commercial models.

I N T H I S E X C E R P T

This is an excerpt from an ongoing report series on service providers in the

application testing space for Asia/Pacific (excluding Japan) or APEJ. As part of the

study, IDC Asia/Pacific profiled TCS as one of the key players in the region.

S I T U AT I O N O V E R V I E W

Organizations in Asia/Pacific have never viewed application testing as imperative

during deployments of new applications or enhancements of existing applications.

And while testing services were being consumed in various scenarios, they were

mostly part of the larger SI or application development or maintenance contracts.

CIOs continue to rely on IT to address the business challenges and have their

application stack tuned to the emerging trends what IDC terms as the four pillars —

cloud, social, mobility, and Big Data. On first look, they appear to be simple

requirements, yet they come with their own set of complexities for the global business

— geographic spread, multi-tier application stacks, disparate infrastructure, different

user policies, and government or industry-led compliance and governance norms,

which mostly limit innovation as opposed to enabling it.

IDC believes the aforementioned data are synonymous with the objectives of a

testing or quality assurance engagement, making sure the business gets what it

needs, and rightly in the first attempt. Testing services are slowly moving from being

an overhead or non-critical service to a strategic differentiator. Customers that lack

competence and skills to carry out testing internally are engaging with third-party SPs

to consume independent testing services under different delivery models such as

partial project ownership, complete project ownership, managed testing services —

using a shared test COE and managed testing services — using a dedicated test

COE and, more recently, cloud-based testing services.

Realizing the importance of assuring quality, organizations are now looking at

restructuring and transforming their QA processes. However, most organizations

across Asia/Pacific lack in-house expertise in terms of people, processes, and tools to

carry out testing internally. Hence, they have to engage with third-party SPs that can

help them use testing tools and processes effectively to ensure quality while bringing

down the costs. Moreover, for testing services, customers opt to engage with a

different SP from their existing partner for application development. CIOs want to

achieve more with less, and this has resulted in a stiff competition between vendors.

For vendors, this presents avenues for new business opportunities, while

safeguarding their existing business portfolio. Almost every vendor providing IT

services has set up dedicated business units to provide testing services and continue

to invest to develop these units. While their COEs serve as grounds for creating

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intellectual property and differentiated offerings, their partnerships with major tool

providers aid them in innovation and go-to-market strategy. In addition, there is a

focus on developing the talent pool by means of external and internal trainings to

ensure they are well versed with the latest technologies and tools.

Customers are now utilizing third-party SPs for testing services beyond functional

testing. Through their testing engagements, customers want to standardize their test

processes, tools, and environments throughout the organization. In addition, using

cloud as a medium to develop and test helps organizations to reduce upfront

investments in software licenses, hardware environments, and people. Essentially,

testing services are getting productized — process, technology assets, and

frameworks consolidated into solutions or products, which are then leveraged across

different types of testing requirements.

While there is an increased demand for testing services on Third Platform

technologies, traditional testing still continues to be a sizeable testing services

segment. From IDC"s interviews with the prominent testing SPs, Figure 1 shows a list

of the top 3 trends that will drive the demand for testing in the next five years.

F I G U R E 1

To p 3 T r e nd s D r i v i n g D e m a nd f o r T e s t i n g S e rv i c e s

Source: IDC, 2013

From IDC's conversation with the testing SPs, it is clear that while cloud and mobile

are undisputedly driving the demand for testing, it is essential that vendors have a

strategy to support both traditional and cloud applications. In Asia/Pacific, the

adoption of cloud delivery model for testing services is currently below 10%; however,

this is expected to change during the forecast period, and IDC expects that TaaS will

emerge as one of the preferred delivery models for testing services.

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M a r k e t C o n t e x t

The Asia/Pacific discrete enterprise application testing services market is expected to

grow from US$ 829.1 million in 2012 to US$ 2.5 billion in 2017 at a CAGR of 24.9%.

Compared with U.S and EMEA markets, Asia/Pacific holds a smaller market share,

but has the largest growth rate during the five-year forecast period. This is largely

because of the growing maturity in the Asia/Pacific customers in adopting QA or

testing services.

Figure 2 highlights the spending forecast for Asia/Pacific discrete enterprise

application testing services through 2017. The region is expected to maintain a

double-digit growth rate year over year (YoY) during the forecast period.

F I G U R E 2

A s i a / P ac i f i c D i s c r e t e En t e r p r i s e A p p l i c a t i o n Te s t i n g S e r v i c e s

Sp e nd i ng , 2 0 1 0– 2 01 7

Source: IDC, 2013

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Key Trends for Adoption of Testing Services

Bundled versus discrete. Overall, customers are still inclined to procuring

testing services as part of larger SI or ADM contracts. Except in the cases of

mature organizations, such as banks that prefer to have discrete testing services,

most customers do not have qualms about having the same vendor for

developing and testing their software.

Perceptions of testing. Asia/Pacific customers are rather disparate in their level

of maturity when it comes to software quality testing and assurance. While some

organizations do realize the importance of ensuring quality, the costs associated

prohibit them from engaging with a third-party SP for testing, and others continue

to view testing as an additional overhead and do not realize the importance of

testing.

Demand for automation. Increasing pressure on CIOs to reduce budgets has

led to demanding more services for less. Hence, there is an increased demand

for automation and reusable artifacts that enhance speed to market and bring

down costs.

Demand for outsourcing. Strict budgets and limited resources have led to

customers evaluating options for outsourcing testing services. Global

multinational companies (MNCs) in the region continue to outsource testing to

third-party SPs, while the small and medium-sized businesses (SMBs) continue

to leverage their in-house teams. Vendors are leveraging on their IP and

partnerships to tap into the market and increase their footprint in Asia/Pacific.

TaaS. Although a cost-effective proposition — for the cost-conscious customers

in Asia/Pacific, the trend is yet to pick up. Most vendors report only single-digit

revenues from cloud delivery models for testing in Asia/Pacific.

Pricing models. Across Asia/Pacific, there is wide diversity in QA maturity

among customers, and hence there is no longer a "single-size-fits-all" model, and

vendors are developing pricing models based on the region and the client they

are working with. The pricing models range from time and material, fixed bid,

outcome based, test case based, and the latest one being pay-per-use model.

Cloud and Mobility Driving Growth in Testing

Cloud computing on testing addresses the major concerns existing in the current

delivery model of testing services. Cloud will enable businesses to consume testing

services on an on-demand model based on project type, technology, criticality of

processes, and budget limitations. Cloud testing essentially brings together software

licenses, hardware, and services together, enabling easy consumption through a

pay-per-use model. For businesses struggling with their current IT hardware setup,

cloud computing presents a new paradigm of reducing upfront investments in

hardware. Figure 3 highlights the different parameters of cloud testing.

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F I G U R E 3

C l o ud - Ba s e d Te s t i n g S t r a t e g i e s

Source: IDC, 2013

A few benefits of cloud testing adoption are manifested as follows:

More often than not, testing SPs are faced with a challenge of providing the

production replica as test environment. Sourcing test environments through cloud

reduces the lead time to create environments that replicate production, therefore

improving speed to market. For consumers, it helps reduce large upfront

investments in setting up test environments.

In cases where multi vendors are involved, it introduces additional complexities

of establishing and maintaining connections between two external locations.

Considering that testing is usually carried out in offshore locations, large costs

are incurred in setting up connections between distributed locations. Hence,

going forward, cloud testing will be a preferred approach to sustain complex

software sourcing and distributed development.

Software licenses add up to the bulk portion of the testing revenues, whereby

licenses are purchased to cater to the peak period requirements with most

licenses remain unused during off peak periods. Hence, owners end up paying

for the licenses irrespective of their usage patterns. Cloud delivery testing models

are flexible and scalable, and the fact that you pay per use is the cherry on the

cake.

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In general, the adoption of cloud testing increases automation and covers aspects

beyond functional testing. However, the migration to cloud testing is not an easy task

and factoring in of legacy systems and services, modifying test cases to suit the cloud

environment will be crucial. Vendors are trying to bridge the gaps by building up

extensive partnerships with cloud testing specialists, developing cloud-specific IP, as

well as training their resources internally.

Going forward, the demand for application development in the cloud, as well as

mobile application development will drive demand for testing services. For business

to keep pace with competition, it is inevitable to produce software in emerging

environments. With mobility deployments picking pace, the need for validation of

functional and non-functional aspects for mobile applications has also increased.

Mobility is an employee-driven trend, and hence with myriads of devices

(smartphones, tablets, laptops), networks (WiMAX, WiFi, LAN, WAN, cellular data),

and operating systems (android, iOS, Windows), testing becomes even more

complex. Figure 2 refers to the mobility testing ecosystem. The permutations and

combination of each of these factors need to be tested in short development cycles,

and this is indeed a daunting task. Rapid testing covering all scenarios across

multiple facets will require expertise, and hence mobile application testing will largely

be outsourced to third-party SPs.

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F I G U R E 4

En t e r p r i s e Mo b i l i t y E c o s y s t e m D r i v i n g Mo b i l e T e s t

R e q u i r e m e n t s ac r o s s Eng i n e e r i n g a nd I T Do ma i n s

Source: IDC, 2013

Testing remains crucial in both cases, be it extending applications to mobile or

developing new mobile-specific applications. Given the complexities involved, the

testing requirements have to cover both the functional and non-functional aspects

(including user experience, performance, security, compliance) of testing covering the

various aspects of integration across the disparate application portfolio. This requires

innovative tools, assets and frameworks, different skills, and specialized workforce.

To cope with the requirements for mobility-related testing, SPs are investing in

building their tools, assets, and frameworks. Many of them have dedicated mobility

testing teams and have invested in mobility labs and COEs to stay ahead of the

curve.

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TCS

IDC believes TCS is different from its immediate industry peers because of its level of

focus on vertical specificity, investment on building intellectual property, and enabling

higher level of automation. All this comes together with its ability to provide greater

level of transparency for cost of delivery. This view is substantiated by the following:

Global Network Delivery Model (GNDM). TCS' patented global network delivery

model brings together its 10 offshore delivery centers across Asia (excluding India),

Latin America, and three nearshore delivery centers in Germany, Ohio, United States;

and United Kingdom. These delivery centers, along with several India-based delivery

centers, serve as offshore or nearshore locations and help its customers optimize

cost value proposition in their testing engagements. Emphasis is also laid on hiring

local resources to gain better understanding of the country-specific characteristics.

TCS Integrated Assessment Framework for Assurance (TIARA). This framework

enables TCS to carry out advisory-led assurance engagements by engaging with its

customers in early stages. Using this framework, TCS carries out assessment of

testing practices of their customer both at industry level, as well as the customer

level, and advice them accordingly resulting in having quality systems. While several

of TCS' competitors do undertake advisory services as part of their testing

engagements, few have the level of depth and capabilities as TCS does.

Vertical Focus. TCS is able to translate its vertical-led focus into its testing

engagements. Having successfully integrated its industry knowledge and technical

expertise, TCS is able to offer a higher level of automation to its test cases and

provide more concrete business analysis. It has over 50+ accelerators of which

patents have been applied for about 25 frameworks. Some of the examples include

Basel validation, SEPA test tool, FATCA rules framework in the banking and financial

services domain, as well as customized TIARA, V-RAFT, HARMONY, i-RAFT

(Test Automation for Infrastructure Mgmt Apps) for the Hi–tech domain and Altea,

ecommerce and mobility in the transport, travel and hospitality sector.

Co-innovation network initiative (COIN). TCS' COIN initiative uses Intellectual

property (IP) management and partnering strategies to drive innovation by virtue of

which TCS either directly invests in IP development or acquires the IP and imbibes it

into its testing services. In discussions undertaken by IDC, TCS has the widest

portfolio of IP assets built on top of traditional testing tool partners. Examples of this

are: Intelligent Testing System leveraging CA Lisa platform, Windchill project

life-cycle management (PLM) application using IBM Rational platform, and Enterprise

Test Data Management Services (EntTDMS) leveraging Informatica ILM platform.

Customers engaging with TCS are also set to benefit from its large resource pool.

TCS assurance unit has over 19,000+ testing professionals. To train these resources

to stay abreast with the emerging trends and technologies, TCS has implemented the

5D competency framework that encourages assurance professionals to undertake

internal and external certifications.

As an organization to stay ahead of the curve, TCS is investing in areas of cloud,

mobile, and virtualization. As part of its investments in cloud, TCS, in partnership with

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AWS, has developed the assurance on cloud to help its customers in their move

toward cloud-based testing. TCSs Hy5 Test is a cost-effective solution for providing

cross-platform automated testing of mobile apps. In addition, it has partnerships with

leading mobility and cloud test tool providers. These partnerships will help TCS test

and build solutions in the emerging areas.

TCS derives close to 50% of its business from its engagements in the BFSI sector.

However, its capabilities based on its investments, vertical expertise, and previous

experience are not restricted to BFSI sector alone and span across retail, utility, and

telecom sector, too. IDC recommends clients that are looking for a partner with deep

testing expertise, specific to banking and financial services, retail and utilities,

insurance, travel, transport and hospitality, telecom, energy, should favorably

consider the vendor.

F U T U R E O U T L O O K

Traditionally, companies offered testing services in an integrated fashion often

bundling it with larger outsourcing contracts. However, in recent times, companies

tend to opt for a different SP from their existing application development partner for

testing services. For vendors that do not have a presence with the client, this

presents opportunities to establish their presence; however, for the existing vendor,

this is a challenging position of safeguarding its position as an end-to-end SP.

To address the demand for independent testing, vendors have set up independent

testing units as horizontal services and, in most cases, these units have a direct

reporting line to the CEO. Having done so, the next challenge for these vendors is to

push its brand as an independent testing SP through extensive sales and marketing.

While some vendors have worked on their QA consulting capabilities to exploit a

consulting-led approach, the others are working on building a strong testing services

portfolio to position themselves as an independent testing SP.

With low barriers, the testing services segment is a competitive sector, and vendors

will have to invest in innovation to create differentiation to support both traditional and

emerging technologies. Hence, vendors are constantly investing in partnerships with

testing tool providers, focusing on innovation, and developing industry-specific point

solutions and frameworks to differentiate themselves from their peers. Furthermore,

testing services, being a low barrier segment, vendors are coming up with different

pricing and delivery models and enhancing testing portfolio to sustain their position in

the market. Testing services have definitely moved beyond functional testing and

there is an increased demand for specialized testing services SOA, package

applications testing, mobile testing, and so forth.

Vendors are positioning themselves as a strategic partner for testing from being body

shops. QA consulting is also an emerging area where customers now engage with

third-party SPs to carry out test assessments and develop a road map for their testing

services. Consulting services are extended to offer road map development for testing

services, tool consulting, test management, and automation consulting and onsite,

offshore, or nearshore analysis. For mature customers, establishing TCoE enables

standardization of testing processes, promotes reuse of test case or scenarios,

thereby ensuring optimization to enable speed to market while ensuring quality

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holistically. However, this delivery model is suitable for large engagements for

customers that have clear defined business processes. Hence, only a small section of

the customer base leverages COEs for fully managed testing services from a

third-party SP.

Vendors continue to invest in emerging trends of cloud, mobility, social, and

Big Data or analytics both through dedicated COEs and partnerships with testing tool

specialists. Organizations are now exploring options of accelerating their testing

delivery, while being extremely cost conscious. Hence, with reduced upfront

investments, cloud delivery models are gaining popularity. Customers now have an

option of choosing to pay by the drink as opposed to upfront investments in tools,

licenses, and infrastructure. However, cloud delivery models have a two-pronged

impact on vendors testing services business. First, it creates new business

opportunities, hence justifying the large-scale investments by vendors to develop

cloud-related solutions and accelerators. Second, it disrupts the way testing services

are carried out currently. Therefore, vendors will have to understand that TaaS

models need to have a clear vision of future growth of testing services and will have

to find ways and means to make it sustainable over the longer run.

Vendors are increasingly leveraging their partnerships with testing tool providers to

provide automation spanning the entire test life cycle through accelerators, tools, and

frameworks. Partnerships also form means of vendor's go-to-market strategy.

In addition, testing labs and COEs aid in building up IP to offer differentiated offerings.

Vendors are bringing in value-add to their test engagements by analyzing data

collected throughout the test cycles and feeding it to the upstream processes, thereby

improving quality holistically.

Additionally, vendors are investing in their people resources, too. Testing

professionals are increasingly encouraged to take up internal certifications (most

vendors have set up internal training academy to train their resources) and external

certifications (e.g., tool certifications — HP, IBM, and ISTQB certifications).

Companies have laid out career paths for testing professional, enabling individuals to

take up testing as a profession and being "career testers." To build the talent pool,

companies have also partnered with universities to jointly develop testing programs.

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E S S E N T I A L G U I D A N C E

Overall, vendors continue to struggle to shed their image of integrated SP and

establish themselves as an independent testing SP. Through continued investments

in assets, capabilities, partnerships, and customer relationships, some of them have

been able to ascertain their position as independent testing SP, while the rest have

yet to break their cocoon of integrated SP.

A d v i c e f o r V e n d o r s O f f e r i n g T e s t i n g S e r v i c e s

While independent testing services open new doors of opportunities to these vendors,

understanding the ever-shifting customer's pain points and bringing in value even with

small entry-level engagements can go in building strong vendor-customer

relationships.

Differentiated offerings will be a key deciding factor for customers to short-list

vendors to outsource testing services. Vendors need to continue investing in

building intellectual property.

As testing services go beyond functional testing, vendors need to have

vertical-specific offerings as part of their testing portfolio.

Vendors need to be flexible to offer testing services under different pricing and

delivery models.

Vendors need to build governance and transparency in their delivery. This will

help them with better client management.

Vendors need to invest in sales and marketing to expand their reach and build

their brand as an independent testing SP.

Vendors need to be tool agnostic, so as to offer flexible services to their clients.

While vendors have nearshore or offshore centers in Asia/Pacific, it is essential

to adopt the localization strategy. This will help them strengthen their position by

developing deep understanding of unique market characteristics and cultural

harmony in countries with language and cultural dependencies.

Vendors have the onus of embedding testing services into the customers DNA to

drive the demand for testing services.

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A d v i c e f o r B u y e r s o f T e s t i n g S e r v i c e s

IDC recommends that consumers of testing services evaluate the following factors

before engaging with any third-party SPs. In addition, it is very important that

internally the organization is ready to enter into a contract with a third-party SP for

testing services — company's culture and polices have a major role in determining

the internal readiness.

The first step before engaging with a third-party SP would be to evaluate the

business goals. The market is flooded with several vendors offering different

operating models under various pricing models. Hence, it is essential to choose

the right vendor that suits the customer's business model and can help them

achieve desired business outcomes. Several vendors offer assessment

frameworks, and it is highly recommended to explore these assessment

frameworks to assess the current QA maturity levels to set right expectations.

Further, it makes no sense to just follow the market hype without discovering how

it affects your organization. Hence, it is advised that customers engage in QA

consulting to utilize and optimize the use of testing tools, software's licenses, and

delivery methodologies. The QA assessment and consulting services can help

them decide from the various delivery models, as well as on setting up of TCoE

or adopting cloud delivery models.

In IDC's conversation with various vendors, it was revealed that organizations

allocate anywhere between 20% and 30% of their application budget toward

testing. While for some organizations, stricter budgets may restrict the utilization

of QA services throughout the project life cycle. Hence, it is essential to capture

the test results in a way that they are fed to the upstream processes. In addition,

involving testers in early stages of the project will help reduce defects and

improve quality.

Having contracted a third-party SP, it is also important to define service-level

agreements (SLAs) that are easily tracked and maintained. Some vendors offer

real-time tracking of defects through dashboards, and these can be effective in

justifying the investments made in engaging with a third party.

In cases where TCoEs are established, it is important to drive down the

importance of testing across projects so that these centers deliver complete

value to the organization. Internally, project managers need to be educated to

have standardized test processes and tools.

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Choosing the vendor can be a challenging task. IDC recommends that a

thorough evaluation be carried out before choosing the vendor.

Breadth and depth of testing portfolio. IDC suggests that customers

study the testing portfolio of the vendors. This includes understanding their

investments in tools, frameworks, consulting, and delivery capabilities and

vertical expertise. It is best to engage with a vendor that has vertical

expertise in your area of operation. This not only helps them understand

your business effectively but also helps leverage their expertise gathered

from their previous experience.

Ability to innovate and focus on testing. While engaging in discrete

testing contracts, it is essential to evaluate the ability of the vendor in

offering differentiated offerings that will help achieve speed to market

through tools, frameworks, and automation. Their ability to innovate will also

help customers keep pace with emerging trends such as cloud and mobility.

Flexibility and scalability. It is vital to understand if the vendor has the

resources to address customer's peak-level requirements. Flexibility of the

vendor can be gauged through their ability to leverage resources onsite and

offshore and be able to provide a balanced mix of both.

Pricing models. Look for the various pricing models vendors have to offer.

See how the cost of the tools and software are integrated into the pricing

models.

L E AR N M O R E

R e l a t e d R e s e a r c h

Worldwide and U.S. Discrete Testing Services 2013–2017 Forecast: Cloud and

Mobility Drive Growth (IDC #241998, July 2013)

Western Europe Discrete Application Testing Services Market Estimate 2012 and

2013–2017 Forecast (IDC #EA02V, July 2013)

Worldwide Cloud Testing and ASQ Software as a Service 2012–2016 Forecast

and 2011 Vendor Shares: Enabling Multimodal Quality and Business Agility with

Cloud Testing (IDC #236928, September 2012)

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