TCS, Infosys and SQS have recently published their calendar Q1 and H1 2014 revenues, and provided financial details on their software testing revenues (see notes below).

In calendar H1 2014 (all numbers below are constant perimeter NelsonHall estimates):

• TCS: revenues were ~+24% to ~$612m (H1 2013: ~+23%)
• Infosys: ~+21% to ~$395m (H1 2013: ~+15%)
• SQS: + 9% to €129m (~$174m) (H1 2013: ~ +6%).
• Combined TCS, Infosys, and SQS: +~20% in H1 2014 (H1 2013: +17%).

SQS provides some level of insights on sub-segments:

• Growth remains driven by managed testing services contracts (H1: ~+22%)
• Professional services revenue growth: +0%-5%. Interestingly, the company is engaged into a profitability improvement effort that is impacting its growth in professional services and especially in staff augmentation.

NelsonHall is predicting for 2014 and 2015 spending growth of over 13%. Managed testing services spending will achieve 17% growth, professional services around 9%. After a (relative) slow-down in 2013, spending on testing has accelerated again, largely thanks to better economic conditions in most Western countries.

NelsonHall has recently published its Software Testing Assessment and Forecast. For more information, please contact Guy Saunders at [email protected].

Note:

• TCS and Infosys are the only 2 of all tier-one Indian-centric IT services vendors that provide as part of their communication revenue related to their testing practices. The financial reporting of TCS and Infosys do not provide information to all of the companies’ testing activities but do provide inside about trends
• SQS is the largest software testing pure-play globally
• Together, TCS, Infosys and SQS account for ~15% of worldwide testing spending across the world.