Software testing is big revenue spinner for cos

Software testing arms of IT companies are growing, revenues indicate. Interestingly, these businesses are also helping companies enter new geographies.

Testing is an independent function that verifies software developed by third parties or clients. It indicates flaws and bugs in software that companies are suggested to correct through their software development vendors.

Mr Arun Ramu, Vice-President and Head, Independent Validation Services, Infosys Technologies, says Internet growth has resulted in in-house applications (usually not properly tested) becoming public to clients, partners and customers. Failure in such cases can impact businesses badly and hence testing has become vital today.

Infosys’ testing team has been doubling in size every year for the last three years, he said without sharing any numbers.
Doubling headcount

Over last year Cognizant Technology Solutions has doubled headcount in testing services to about 6,000 people. Ms Sumitra Gomatam, Vice-President, Cognizant, said these numbers were indicative of revenue growth, attributing it to demand from clients – new and existing.

“Clients realise their budgets on software maintenance are high and want to reduce this by finding and eliminating software defects at early stages through rigorous testing,” she said. Over 200 of Cognizant’s 430 clients use its testing services.

The company was able to enter Europe through its testing business and is now seeing clients there move software development projects to Cognizant’s Indian offices.

Wipro Technologies, currently with over 6,500 employees in testing, entered Japan, Australia, New Zealand, West Asia, Portugal and Romania via testing. “Ten out of the 40 clients we bagged in the first quarter of 2007-08 came as a result of our testing business,” Mr Sanjay Seth, General Manager, Marketing and Alliances, Wipro Technologies, told Business Line.
Training investment

Wipro is investing about $2,500 per employee in training them to undertake certificate courses in testing. “Clients show a preference for such employees and their billing rates are also higher,” he said. Having automated 40 per cent of its testing work, the company is focusing on high end testing for the future.

For Mr Dilip Dhanuka, Senior Vice-President and Head – Products and Technology Initiatives, Patni Computer Systems, testing is emerging as a mainstream activity, on par with product development.

“We see this industry growing at current rates for the next 2-3 years. In future, we want testing to support all the 50-60 activities Patni currently offers,” he said.

The global offshorable market for testing, growing at about 60 per cent, is estimated to be worth about $3.5 billion, of which India’s share could be $750 million - $1 billion, reports say.