Vendor Analysis
published on Jul 30, 2024
Report Overview:
This NelsonHall vendor assessment analyzes Expleo's offerings and capabilities in quality engineering services
Who is this Report for:
NelsonHall’s Quality Engineering profile on Expleo is a comprehensive assessment of Expleo’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of QE and identifying vendor suitability for quality engineering/QA/testing services
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the QE and IT services sectors.
Scope of this Report:
The report provides a comprehensive and objective analysis of Expleo’s QE offerings, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, challenges, and outlook
- Revenue estimates
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization, including the location of delivery centers.
Key Findings & Highlights:
Expleo is the organization resulting from the 2018 acquisition by Assystem Technologies (ATG), an engineering and R&D services (ER&D) vendor, of Software Quality Systems (SQS). Germany-headquartered SQS was, until Q1 2018, the largest QA/software testing service pure-play globally.
Expleo had 2023 revenues of € 1,387m, up 9%, and a headcount of 19,000.
The company operates in two broad areas: engineering and R&D services and application services (grouping QE/QA/testing and digital services). The company is majority-owned by PE Ardian, with Assystem as a minority shareholder.
Examples of QA clients include Liberty Mutual, Siemens, BP, Volkswagen, Hiscox, Worldline, Marsh, Allianz, BNP Paribas, and Arianespace. Allianz remains the largest testing client.
An essential change in Expleo's portfolio strategy was expanding beyond quality assurance to consulting, digital, and agile. The company expanded its capabilities to growth markets such as low-code/no-code, agile development (selectively), process automation (RPA), cybersecurity, data, and cloud computing. The company operates in SAP services, providing program/project and change management.
In 2023, Expleo regrouped its QE and digital activities into a single organization, acknowledging the increasing overlap between the two activities (e.g., data and AI, security, SAP). The company has grouped the two organizations in its Digital and Technology business and intends to drive portfolio and delivery synergies. Digital and Technology is a horizontal service line.
Within Digital and Technology (D&T), QE/QA accounts for ~70% of activities. It has ~6,000 testing practitioners.
D&T has structured its services around four categories: strategy and consulting, assurance & testing, digital & development, and technology delivery.