QA of the Future | Market Insights™
June 28, 2017
QA of the future: open, as-a-service, innovative, outcome-led
QA of the future: open, as-a-service, innovative, outcome-led
Market disruptions are putting existing QA models are under the microscope, compelling QA organizations to transform themselves to deliver breakthrough business value
Outsourcing product quality management – the risk/return conundrum
Engineering Services providers are enabling enterprises to:
Reduce cost
Localize and gain access to new markets
Access expertise and mitigate risk through specialists
Adhere to complex regulatory policies and security standards
Improve efficiency and quality
Ensure speed-to-market
Overcome internal capacity constraints
Develop quality management as a strategic process
The ES global sourcing market is expected to see accelerated growth as the result of a number of new demand paradigms
Testing as a service offers a variety of benefits, including pay-per-use, which saves on investment in expensive tools & infrastructure and experts, and access to specialized skill sets to deal with complex problems
Digital capabilities continue to change the character of quality assurance and testing activities
Is innovation to improve competitive positioning at the top of your company’s agenda? A common approach is to look at the technologies leading companies use to transform their business, then set up an incubator or innovation lab (either internally or externally in a service provider’s business) and provide funding to experiment with the technology. I’ve observed incubators and innovation labs for almost 10 years. Unfortunately, very few of them resulted in meaningful changes to competitive positioning of the company. Let’s look at what you need to bake into your strategy at the outset so you can capture the greatest value from an incubator or innovation lab.
Proponents argue that it’s a cost-effective way to gain clarity on the risks and challenges around implementing a new technology, and they see it as an opportunity to gain greater understanding of the possibilities of new technologies. It’s also a way to identify myths vs. facts around an emerging technology. Certainly, these are wise steps in a business where new technologies have to win the battle for attention among other priorities. But they largely fail to succeed.
Everest Group leaders will attend and speak at the 2017 Global Sourcing Association UK Symposium on June 27-28. The theme of this year’s conference is “Sourcing. Reignited.” Managing Partner Eric Simonson will lead a discussion about automation titled, “What’s Next After Robotics?” VP of Global Sourcing Anurag Srivastava will help lead a discussion around sourcing trends on an analyst and advisory panel.
When:
June 27-28, 2017
Where:
22 Melton Street
London
NW1 2BW
Everest Group speakers:
Eric Simonson, Research Managing Partner, Everest Group
Anurag Srivastava, VP of Global Sourcing, Everest Group
My most recent blog focused on why quality management (QM) is a critical contributor to enterprises’ ability to take great products to market. Now, let’s turn our attention to who can – indeed, perhaps should – perform product QM work for organizations.
Viewing QM activities as a core competency, enterprises have traditionally conducted them in-house. In some cases, they’ve engaged their global in-house centers (GICs) to handle some aspects of QM in order to reap the benefits of factors such as talent access and cost arbitrage, while still retaining control over issues such as IP protection and close integration with the parent entity, which is key for product design and development.
However, the advent of innovative engagement models (e.g., outcome-based pricing, collaborative IP, etc.), the pervasiveness of digital technologies, and advancements in data and IP security measures are instilling confidence among enterprises to partner with third-party service providers for their product QM activities. Recent investments by service providers in building IP and enhancing their capabilities in this space – spurred in part by slowing growth in more traditional ITO and BPO areas – is strengthening their case with enterprises. Indeed, Everest Group research shows that global sourcing in the QM space will grow at an impressive 16 to 18 percent through 2020 – higher than the growth expected in the global sourcing space for overall engineering services.
Following are some of the ways in which third-party service providers can deliver product QM value to clients.
Of course, outsourcing product QM does come with risks and challenges. Factors that enterprises should consider when weighing a product QM outsourcing decision include:
When evaluating a particular outsourcing service provider for product QM work, enterprises should evaluate factors including talent availability, infrastructure availability, delivery capabilities, ability to scale up/down, innovation-focus, expertise in digital themes, inclination towards outcome-based business models, and client satisfaction.
Everest Group has conducted deep-dive research on the global sourcing landscape in the product engineering space, covering all the activities involved in the validation, verification, and testing of both hardware and software across the product lifecycle. We have studied twenty-three of the leading engineering service providers in the QM services space, and have analyzed them on parameters including capabilities, scale and scope of services, and IP/investments. Following is a sneak peek into our relative analysis of these players based on their engineering services play, revenue and revenue growth, and coverage of QM services.
Please click here to read a preview of our report, “Identifying the Right Partners for Quality Management in the Engineering Services Industry – Service Provider Landscape.”
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