Why Independent / Specialized Testing Services Providers?
- Client spending transfers from TTS to STS. Spending in STS will equal TTS spending by 2016
- Demand for STS Has Expanded to Multi-Year Contracts and to “Shift-Left”
- Proliferation of New Services. Further Automation through IPs. Larger Contract size
- Clients aiming to Create Testing CoEs
- Clients using Testing Services in Support of Go-To-Market and Launching New Applications
- Clients are looking for Third-Party-Certification for Compliance
- Financial Services (38%), Telecom & Media (16%) and Retail CPG (12%) are the largest verticals on STS spending
- Financial Services (19%), Energy & Utilities (12%) and Retail & Logistics (10%) are the fastest growing verticals
- The adoption of testing has been strong in sectors with large application estates (e.g. banking) Or which are investing in new applications
- Key Drivers – Regulatory compliance (banking and life science), M&A activity, and new communications media (omni-channel and mobile telephony applications)
- Financial Services – Retail banking is the main spender in STS driven by cost savings as well as by mobility, payment, omni-channel, and regulatory compliance
- Telecom & Media – Spending in TME is growing moderately. New usages, e.g. new mobiles, new apps and new models (data monetization and value-added services) are driving spending.
- Technology vendors – ISVs have key investment priorities revolving around SaaS products
- Retail & Logistics – STS spending is driven by omni-channel initiatives.
- Energy & Utilities – New services, e.g. smart grids and meters, and investment in conventional and green energies is driving STS spending
- Healthcare – Healthcare (U.S.) will remain driven by the Obamacare and ICD 10 migration
- Public Sector – Central governments tend to increase spending to modernize their administrations and increase ecitizen services
- Manufacturing – Spending will increase largely related to PLM and IoT /M2M.
- The global Specialized Testing Services is a high growth industry valued at ~$15.7bn in 2014 growing at ~+12% in 2014 and during the 2014-2019 period
- Financial Services (38%), Telecom & Media (16%) and Retail CPG (12%) are the largest verticals on STS spending
- Functional testing represents 75% of STS spending. New offerings in demand are Mobile app testing, security testing, ERP & BI testing, SOA testing and agile testing
- India based delivery of testing will grow from 54% of STS spending in 2013 to 67% of STS spending in 2018
