NelsonHall’s Software Testing Vendor Assessment for Syntel is a comprehensive assessment of Syntel’s software 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.
Key Findings & Highlights
Syntel is a Troy, Michigan headquartered vendor of Indian IT and KPO services. It was founded in 1980 and floated on the U.S. NASDAQ in 1997. The company has a market cap of ~$3.5bn. Syntel had 2013 revenues of $824m and an income from operations margin of 32.4%. Q1 2014 revenues were $220m, up 16%.
Syntel’s testing practice was created in 2004 and reached a headcount of 3.5k in 2012; by Q1 2014 it was representing ~14% of Syntel’s overall headcount. It is a horizontal line within Syntel, providing full-time testing personnel for client engagements.
Syntel has structured its testing service offering around two main principles:
It is rather far-reaching in scope, expanding from core manual testing to specialized services, e.g. software, ERP testing, and model-based testing
Each service offering, especially in specialized testing services, is to be underpinned by an IP or accelerator. IP creation is a key priority for the company, as it is meant to drive automation and to be a differentiator to the competition.
Syntel has divided its testing service offering into two main categories:
Traditional testing activities, ranging from functional testing (manual testing and test automation) to non-functional (performance testing and security testing) and QA services (including test process improvement). These services account for ~75% of Syntel’s testing revenues
Specialized offerings including ERP testing, mobile application testing, BI and data warehousing, and test support activities. These services represent 25% of Syntel’s testing revenues.
Consistent with Syntel’s overall strategy, the testing practice is developing its own IP around each offering.
Syntel’s main IP is iTAP, which is a superseding tool that incorporates a number of Syntel accelerators, ranging from model-based testing to test case repositories. Syntel also has a number of standalone tools including mobile application testing and browser compatibility testing.
One of Syntel’s major actions in 2013 was to finalize the restructuring of its IPs into standalone accelerators; as a result, most of its clients do not use iTAP (see below) as a whole, but specific components or features.
Scope of the Report
The report provides a comprehensive and objective analysis of Syntel’s software testing offerings, capabilities, and market and financial strength, including:
Analysis of the company’s offerings and key service components
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.