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Expleo/SQS– Next-Gen Testing Services

Vendor Analysis

by Dominique Raviart

published on Mar 01, 2019

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Report Overview:

Since 2009, Expleo (the former SQS) has transformed its business model, expanding from its background in QA consulting and onshore testing delivery to growing its presence across offshore and nearshore centers, e.g., India, for addressing multi-year managed testing services contracts (managed services, MTS). Expleo has also repositioned its onshore service offering away from staff augmentation (professional services, PS) and has been growing its specialized quality services and management consulting services (MC).

In 2018, SQS was merged with a French engineering and R&D service group, Assystem Technologies Group (ATG) as part of a private equity arrangement and delisted from the respective stock markets. ATG now has around 16k employees. NelsonHall estimates the combined revenues of ATG and SQS in 2018 to be €1.05bn. ATG, along with SQS, was rebranded as Expleo in February 2019.

The acquisition has led to a new wave of investment by Expleo in its service portfolio and added to the three priorities listed above, a service expansion towards product and embedded systems testing, with a high focus on manufacturing and, in particular, Factory of the Future.

Who is this Report for:

NelsonHall’s Software Testing Vendor Assessment for Expleo (the former SQS) is a comprehensive assessment of Expleo’s next-gen testing service 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 Expleo’s next-gen testing service 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
  • Analysis of the company’s strengths, weaknesses and outlook.

Key Findings & Highlights:

Since 2009, Expleo (the former SQS) has transformed its business model, expanding from its background in QA consulting and onshore testing delivery to growing its presence across offshore and nearshore centers, e.g., India, for addressing multi-year managed testing services contracts (managed services, MTS). Expleo has also repositioned its onshore service offering away from staff augmentation (professional services, PS) and has been growing its specialized quality services and management consulting services (MC).

In 2018, SQS was merged with a French engineering and R&D service group, Assystem Technologies Group (ATG) as part of a private equity arrangement and delisted from the respective stock markets. ATG now has around 16k employees. NelsonHall estimates the combined revenues of ATG and SQS in 2018 to be €1.05bn. ATG, along with SQS, was rebranded as Expleo in February 2019.

The acquisition has led to a new wave of investment by Expleo in its service portfolio and added to the three priorities listed above, a service expansion towards product and embedded systems testing, with a high focus on manufacturing and, in particular, Factory of the Future.

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