Thiruvenkateswaran Ramachandran is a test delivery management and consulting professional whose areas of expertise include test centers of excellence, test process optimization, and relationship management. The document discusses trends in global software testing outsourcing, including a 24% increase in outsourcing contract value from 2011 to 2012. It also provides guidance on transitioning from internal to outsourced testing services, starting small, continuously evaluating vendors, and leveraging a global talent pool for cost management. The future of outsourcing is predicted to involve trends like cloud computing, big data, mobility, and nearshoring, with the outsourced IT services market growing to $281 billion by 2015.

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 ?
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2. “ To give a perspective of global software IT
market and Testing Outsourcing and its trends“
Objective
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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
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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?
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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
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6. Software Testing Outsourcing 6
IT Outsourcing – 2012
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Source : KPMG

7. Transition Steps from an internal
testing service to an outsourced
service
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8. 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

9. Always Start small ;
• To gain confidence
• To have control
• To react faster
How do you start ?
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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?
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11. 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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12. Evaluate your vendor on;
• Costing
• Delivery Performance
• Reliability
• Client Feedback
• …
• …
Are you served well ?
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13. Leverage global talents pool for better
cost management
Benefits
International Experience and best
practices are the key to success
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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
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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)
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16. Future of
IT Outsourcing
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17. Outsourcing Trends over next 5 years ?
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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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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
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Global IT Outsourcing market Trend:

19. Thank you and Good day !
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