Name : Thiruvenkateswaran Ramachandran

Profession : Test delivery management, Test consulting, Business

development/Presales activities ,Test centers of excellence,

Thought leadership, Technical test advisory, Strategy Implementation,

Creating test architecture, Innovative test solutions, Test coaching,

Test process optimization and Relationship management.

LinkedIn : http://www.linkedin.com/pub/thiruu/7/572/387

Who am I ?

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“ To give a perspective of global software IT

market and Testing Outsourcing and its trends“

Objective

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Agenda:

Software Testing Outsourcing 3

IT Outsourcing – A short Introduction

Transition Steps from an internal testing service to an outsourced Service

Future of IT Outsourcing

04/12/2023

Key Drivers for

IT Outsourcing/partnering?

• Cost benefits/More profits

• Dynamic global economic Condition

• Scarcity in Local market (Leveraging

experience which is not available

internally)

• Delivery commitment / assurance

• Improve quality / predictability

• High volume customers

• Faster time to market

Why IT Outsourcing?

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Software Testing Outsourcing 5

The current edition looks at IT-BPO outsourcing contracts signed in the last four years from 2009 to 2012 and identifies the major trends influencing the market. This report also includes our regular quarterly analysis feature for the latest quarter Q4-2012 (October – December).

2012 marked the upturn in outsourcing by global organizations with a 24% increase in IT-BPO contract value over 2011. The economic crisis in EMA is not alleviating and the political and economic gridlock in AMERICAS and ASPAC continues.

- Source KPMG

IT Outsourcing – 2012

04/12/2023

Software Testing Outsourcing 6

IT Outsourcing – 2012

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Source : KPMG

Transition Steps from an internal testing service to an outsourced

service

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Identify short term and long

term business Objectives for

outsourcing industry

What is your Goal ?

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Example:

Short term - Acquire Niche skillsets

Long term -Creating Internal Knowledge pool

Always Start small ;

• To gain confidence

• To have control

• To react faster

How do you start ?

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Identify the work package/function

which you want to outsource within

Testing:

• Functional test levels

• User Acceptance testing

• Performance testing

• Automation testing

• Testing center of Excellence

• Testing as a service (Taas)

Where do you start?

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Choose your vendor after series

of evaluation

How do you select Vendors ?

Buy what do you want and not

what they sell

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Evaluate your vendor on;

• Costing

• Delivery Performance

• Reliability

• Client Feedback

• …

• …

Are you served well ?

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Leverage global talents pool for better

cost management

Benefits

International Experience and best

practices are the key to success

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• Establish Test Organization structure and reporting mechanism

• Outsourcing companies ( Part of your company )

• Educate the employees of both firms to work together as one team

• Test Agreements, Test policy ,guidelines and bridge documents

• Common templates for Testing Documentations

Testing Outsourcing

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• Continuous evaluation (using KPIs) of deliverables from the

outsourced company to ensure the quality standards to end

customers

• Establish proper communication channels (e.g. Using Video/telecon)

• Train the employees in Onsite/Offshore ,Nearshore IT delivery

Models , culture and processes

• Reward and Recognition for outstanding performers

Testing Outsourcing (cont’d)

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Future of IT Outsourcing

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Outsourcing Trends over next 5 years ?

Software Testing Outsourcing 17

Top 6 Trends for Global Sourcing :

Trend 1. Cloud Evolution + Personal Cloud

Trend 2. Big Data

Trend 3. Mobile Development and Integration explode

Trend 4. Enterprise App Stores

Trend 5. Near shoring + Agile - The combination of

choice

Trend 6 . An increased demand for outsourced IT

services from the public sector

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Software Testing Outsourcing 18

Outsourcing Market forecast

225 240 249 259 269 281

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015

Rev

enue

by

Dol

lar

Billi

on

Year Courtesy – Gartner

TechNavio's analysts forecast the global Software Testing Services market to grow at a CAGR of 11.1 percent over the 2010-2014 period

04/12/2023

Global IT Outsourcing market Trend:

Thank you and Good day !

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