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SQS - Digital Testing

Vendor Analysis

by Dominique Raviart

published on Sep 20, 2017

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Report Overview:

This NelsonHall vendor assessment analyzes SQS' offerings and capabilities in digital testing services.

Who is this Report for:

NelsonHall’s Software Testing Vendor Assessment for SQS is a comprehensive assessment of SQS’ digital 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 SQS’ digital 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
  • Analysis of the company’s strengths, weaknesses and outlook.

Key Findings & Highlights:

Germany-headquartered Software Quality Systems (SQS) was founded in 1982. With revenues of ~€327m (~$343m) in 2016 and ~4,500 employees (at the end of 2016), SQS is the largest software testing pure play globally, ahead of QualiTest Group and Cigniti.

Since 2009, the company has undergone a transformation of its business model, expanding from its background in QA consulting and onshore testing delivery to growing its presence in India for addressing multi-year managed testing services contracts (managed services, MS). SQS has also repositioned its onshore service offering away from staff augmentation (professional services, PS) and wants to further grow its specialized services and management consulting services (management consultancy, MC).

A key element of SQS' digital testing strategy lies in its shift towards specialized technical services including:

  • Continuous testing for digital (both functional and non-functional automation)
  • Test support services (e.g. test data, test environment provisioning and management, service virtualization).

SQS started structuring its specialized and digital capabilities centrally, initially through its delivery center in Belfast, U.K, in 2016/2017. Since then, it has expanded its technical skills towards Pune and Chennai, where the company believes it can scale up rapidly. SQS has also created its 'SQS Digital Labs', a CoE offering digital testing services for transformation projects. 

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