Name : Thiruvenkateswaran Ramachandran
Profession : Test delivery management, Test consulting, Business
development/Presal...
“ To give a perspective of global software IT
market and Testing Outsourcing and its trends“
Objective
Software Testing Ou...
Agenda:
Software Testing Outsourcing 3
IT Outsourcing – A short Introduction
Transition Steps from an internal testing ser...
Key Drivers for
IT Outsourcing/partnering?
• Cost benefits/More profits
• Dynamic global economic Condition
• Scarcity in ...
Software Testing Outsourcing 5
The current edition looks at IT-BPO outsourcing contracts signed in the last four years fro...
Software Testing Outsourcing 6
IT Outsourcing – 2012
8/1/2013
Source : KPMG
Transition Steps from an internal
testing service to an outsourced
service
Software Testing Outsourcing 78/1/2013
Identify short term and long
term business Objectives for
outsourcing industry
What is your Goal ?
Software Testing Outsou...
Always Start small ;
• To gain confidence
• To have control
• To react faster
How do you start ?
Software Testing Outsourc...
Identify the work package/function
which you want to outsource within
Testing:
• Functional test levels
• User Acceptance ...
Choose your vendor after series
of evaluation
How do you select Vendors ?
Buy what do you want and not
what they sell
Soft...
Evaluate your vendor on;
• Costing
• Delivery Performance
• Reliability
• Client Feedback
• …
• …
Are you served well ?
So...
Leverage global talents pool for better
cost management
Benefits
International Experience and best
practices are the key t...
• Establish Test Organization structure and reporting mechanism
• Outsourcing companies ( Part of your company )
• Educate...
• Continuous evaluation (using KPIs) of deliverables from the
outsourced company to ensure the quality standards to end
cu...
Future of
IT Outsourcing
Software Testing Outsourcing 168/1/2013
Outsourcing Trends over next 5 years ?
Software Testing Outsourcing 17
Top 6 Trends for Global Sourcing :
Trend 1. Cloud E...
Software Testing Outsourcing 18
Outsourcing Market forecast
225 240 249 259 269 281
0
50
100
150
200
250
300
2010 2011 201...
Thank you and Good day !
Software Testing Outsourcing 198/1/2013
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Presentation it testing outsourcing 2013

  1. 1. 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 ? Software Testing Outsourcing 18/1/2013
  2. 2. “ To give a perspective of global software IT market and Testing Outsourcing and its trends“ Objective Software Testing Outsourcing 28/1/2013
  3. 3. 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 8/1/2013
  4. 4. 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? Software Testing Outsourcing 48/1/2013
  5. 5. 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 8/1/2013
  6. 6. Software Testing Outsourcing 6 IT Outsourcing – 2012 8/1/2013 Source : KPMG
  7. 7. Transition Steps from an internal testing service to an outsourced service Software Testing Outsourcing 78/1/2013
  8. 8. Identify short term and long term business Objectives for outsourcing industry What is your Goal ? Software Testing Outsourcing 88/1/2013 Example: Short term - Acquire Niche skillsets Long term -Creating Internal Knowledge pool
  9. 9. Always Start small ; • To gain confidence • To have control • To react faster How do you start ? Software Testing Outsourcing 98/1/2013
  10. 10. 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? Software Testing Outsourcing 108/1/2013
  11. 11. Choose your vendor after series of evaluation How do you select Vendors ? Buy what do you want and not what they sell Software Testing Outsourcing 118/1/2013
  12. 12. Evaluate your vendor on; • Costing • Delivery Performance • Reliability • Client Feedback • … • … Are you served well ? Software Testing Outsourcing 128/1/2013
  13. 13. Leverage global talents pool for better cost management Benefits International Experience and best practices are the key to success Software Testing Outsourcing 138/1/2013
  14. 14. • 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 Software Testing Outsourcing 148/1/2013
  15. 15. • 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) Software Testing Outsourcing 158/1/2013
  16. 16. Future of IT Outsourcing Software Testing Outsourcing 168/1/2013
  17. 17. 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 8/1/2013
  18. 18. 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 RevenuebyDollarBillion 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 8/1/2013 Global IT Outsourcing market Trend:
  19. 19. Thank you and Good day ! Software Testing Outsourcing 198/1/2013

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