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CSC - Software Testing

Vendor Analysis

by Dominique Raviart

published on May 27, 2016

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Report Overview:

This NelsonHall vendor assessment analyzes CSC’s offerings and capabilities in software testing.

Who is this Report for:

NelsonHall’s software testing vendor assessment for CSC is a comprehensive assessment of CSC’s software testing offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the software testing sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of CSC’s software testing offerings, capabilities, and market and financial strength, including:

  • Analysis of the company’s offerings and key service components
  • Revenue estimates
  • Identification of the company’s strategy, emphasis and new developments
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts

Key Findings & Highlights:

Since its spin-off of the former North America Public Sector unit (and its subsequent merger with SRA into CSRA), CSC has changed scope: the company had pro-forma revenues of $8.1bn in FY 2015 and its headcount is ~56k.

CSC has a dual background in software testing. In 2007, CSC set up an independent testing practice as a spinoff from Covansys, a company acquired by CSC in 2007. Over time, CSC has incorporated several units, which had developed various areas of expertise, into its main testing practice. These units included in the U.K. (test consulting and advisory services) and, in Bulgaria ISV product testing and other centers. In September 2011, CSC announced the acquisition of then India’s largest software testing pure-play AppLabs. AppLabs had a headcount of 2.5k (of which 2.0k in India) and NelsonHall estimated revenues and EBIT margin of respectively $100m and 15%. The acquisition of AppLabs doubled CSC’s Testing Practice number of career testers to ~5.5k in 2011 and to combined revenues of ~$250m (NelsonHall estimates).

Testing Services (TS), CSC’s testing practice, is a horizontal practice (out of a total of seven horizontal lines) within Application Services, itself a unit of CSC’s Global Business Solutions (GBS). Testing Services is a full testing practice: this means it has its own P&L, solutioning, IPs and accelerators TCoE, and also responsibility over delivery.

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