New contracts are generally for three to five years and engage between 200 and 300 people - MindTree
Indian IT services providers are seeing an increase in volumes in their testing business as customers consolidate vendors and outsource larger deals, which are more transformational in nature. Typically, contracts in the testing business are smaller and clients prefer separate vendors for different projects. There has also been a shift in demand towards more domain-centric solutions.
"Large clients want a single vendor for all the businesses," said Anand Rao Ladi, Vice-President & Head, Independent Testing Unit, MindTree Ltd. "There are opportunities for transformational work. We would like to grow 50 percent more in the testing business, compared with the other units in the company," he added. MindTree earns about 25 percent of its revenue from testing services.
Ladi said the new contracts are generally for three to five years and engage between 200 and 300 people. "It involves multiple locations, working with existing vendors, and managing heterogeneous tool, methodologies and hardware." In such deals there would have to be large near-shore presence in the first year, but gradually the numbers would stabilise. He declined to comment on the size of the earlier deals, but added that the opportunities were much smaller.
Source: The Hindu Business Line
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