Indian –founded AppLabs Technologies, the world’s largest pure-play software testing and quality management service provider has been acquired by US -based global leader in - business technology solutions, CSC. This will enable CSC to provide application testing services in the high growth discrete testing market, supporting the company’s own strategic growth plans and complementing CSC’s expertise in Financial Services, Healthcare, Manufacturing, Chemical, Energy and Natural Resources and Technology and Consumer verticals.
There was some speculation l;ast week, that France-based Cap Gemini might also be in the running to acquire AppLabs.
AppLabs brings a strong portfolio of emerging technologies, proprietary methodologies and tools, and a specialized sales force to CSC which significantly enhances CSC’s capabilities in application testing services as well as shortening time-to-market.
"Application Services continue to play an increasingly important role as companies adopt new technologies and cloud based services to improve the quality and performance and reduce the total cost of ownership of IT services,” said Michael W. Laphen, chairman, president and chief executive officer, CSC. “Acquiring AppLabs represents CSC’s continued commitment to our intense focus on growing the company’s applications development and management business as well as extending superior testing services to our clients and prospects.”
“As a pioneer in specialized testing services, AppLabs will strengthen CSC's portfolio of services that are offered to its customers,” said Sashi Reddi, AppLabs founder and CEO. “AppLabs customers will benefit from the geographic reach and breadth of services that CSC has to offer so that we can finally become truly global partners to our key customers. The 2,500 employees of AppLabs are delighted to be a part of the CSC family.”
According to research firm IDC, the independent testing and validation services market is growing faster than the IT services market and is forecasted for strong growth of 21 percent compound annual growth rate (CAGR) through 2013.
Since its founding in April 2001, Sashi has grown AppLabs from a 3 person outfit in a shared office space in Philadelphia to its current size of 2,500 employees, an offshore delivery centre in Hyderabad, India, sales and delivery offices in London, Philadelphia, Pa. and Lindon, Utah
CSC has approximately 93,000 employees and reported revenue of $16.2 billion for the 12 months ended July 1, 2011 www.csc.com .
September 19 2011