CSC acquires Indian testing company AppLabs

The software testing services company had to find an exit route for an investor

IT services company, Computer Sciences Corporation, said Wednesday it has acquired AppLabs Technologies, a privately held Indian software testing services provider, for an undisclosed amount.

AppLabs, which prided itself on being an independent provider of software testing services to about 150 clients, decided to sell the business to provide an exit to WestBridge Capital, a large investor in the Hyderabad-based company, said Sashi Reddi, AppLabs founder and CEO.

A good offer from CSC and a slowdown in key economies like the U.S. may have also influenced the decision of AppLabs' board, he added. The financial terms of the transaction were, however, not disclosed.

CSC, which already has about 6,000 staff providing testing services, will use the 2,500 staff from AppLabs to offer independent testing services to customers, Reddi said. A key trend in the market is that customers want their testing services provider to be separate from the software provider, to get an independent validation of the work, he added.

A number of Indian outsourcers like Wipro and Tata Consultancy Services have set up independent testing services businesses to address this market.

Reddi said he would assist the integration of AppLabs with CSC.

CSC could not be immediately reached for comment.

AppLabs brings a strong portfolio of emerging technologies and 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, CSC said in a statement on Wednesday.

AppLabs has been very profitable, Reddi said. He did not disclose the company's financials.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

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Tags outsourcingMergers and acquisitionsbusiness issuesservicescscAppLabs

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John Ribeiro

IDG News Service
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