BANGALORE, INDIA: The recent economic crisis has had an impact on all organizations across the nation. We have been witnessing lot of changes in the IT industry as well. According to the latest available reports, we are now officially in the longest recession since the 1940s, with consumer spending down for the first time since 1991.

In an interaction with CIOL, Michel Guez, managing director, Smartesting India, discussed the prevailing trends in the software testing industry.

Guez also dwelt upon the software testing industry in 2009 and the challenges that the industry is likely to face. Excerpts:

CIOL: How has been your company hit by recession and do you have any plans to cut down on the IT budget in future?

Michel Guez: The pessimism and the cautiousness that come together with a recession obviously affect Smartesting. However, our company to the market offers a solution to boost productivity. Such a solution has more appeal when the economic situation is bad as all organizations try to reduce their costs without compromising too much on the level of activity (notably, of projects). Therefore, we expect and already feel a better response to our offer from the market.

CIOL: How do you see the software testing industry in 2009?

MG: 2009, according to us, will have two phases:

* A first phase in which we already are where the market violently takes the blow of the financial crisis and of the subsequent recession.

* A second phase where the market will adjust to the new economic and business conditions, and prepare the groundwork for a solid recovery.

The first phase should last until end of the first half of 2009, and when we will enter into the second phase.

CIOL: According to you, what are the top trends in software testing industry?

MG: There are several trends visible. These are:

* Search for productivity through improved industrialization;
* Changes in the client demand towards more fix bid contracts;
* Clients to require more flexibility and agility in working methods and contractual models;
* Clients to require IT service companies to better understand their business needs and challenges;
* Strong pricing pressure on the tool vendors; and
* Further concentration.

CIOL: What are the present day challenges in the software testing industry?

MG: Industrialization and domain expertise: to clearly understand the clients' business needs and challenges, as well as industrialization to execute the projects in a streamlined way.

CIOL: Do you think that companies in US and Europe still outsource testing products to India? If yes, how?

MG: The present recession will encourage those companies that are still resisting or hesitating to outsource their testing projects to India to do it in 2009. This is particularly true in Europe where lies, in our opinion, a serious growth potential for Indian IT service companies.

This economic crisis should also offer some new opportunities to Indian IT service companies as new categories of clients will consider that outsourcing their testing projects in India is a source of cost savings. However, it is possible that these new categories of clients would be less mature, and therefore, more difficult to serve and to satisfy.

CIOL: How do you see the talent level in the software testing industry in India as compared to other regions?

MG: Seventy percent of the outsourced testing services are performed in India. The major IT service companies have over the years developed excellent processes and have raised the level of expertise of their tester population.

When it comes to innovation capabilities and high end technical expertise, Europe however, is second to none.

The challenge ahead for Indian tester community is to be more open and quickly adopt these innovations and high end skills in order to be more productive. There is no doubt that Indian testers can meet this challenge.