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April 06, 2007

Is there room for independent testing cos.?

Economic Times had an article on the future of independent software testing vendors in the wake of EDS' acquisition of RelQ.
(Ranga Reddy, CEO of Maveric Systems) says: “That is one question we have been pondering for at least two years now. We have come to the conclusion that it has more to do with the entrepreneur-driven model of standalone players, than with the industry as such.”

That’s true. Most software testing companies are still driven by entrepreneurs, and there seems to be some resistance to grow once they reach that Pound 14-18 million revenue mark. The solution is to break off that mould, as AppLabs seems to have done, he said.

The way ahead for standalone players would be to develop expertise in certain domains, create IPs around products and processes. “I don’t think we should be surprised if we see a billion dollar software testing company in the next five to seven years,” he said.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.