Independent testing and quality management company, AppLabs, plans to increase its focus on the

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Indian market, with a view to expand its global revenue base.

The US-based company, considered by some to be the largest software testing firm in the world, is in talks with three Indian companies to kickstart its services business in India. President and CEO Makarand Teje says, “We are looking at the Indian market very seriously. The Indian consumer expects better service and is making higher technological demands on the businesses. That’s forcing organisations to upgrade. That’s where the opportunity lies for us.”

AppLabs considers performance testing to be the area where the company can carve a niche for itself. “Top companies prefer to put their resources into their core areas rather than spend them on testing, which they consider to be more of a mechanical job. Hence, they don’t mind outsourcing it to us,” says Teje.

At present, India’s contribution to the global software testing business is miniscule. Out of the huge $400 billion market, India accounts for only $12 billion. Teje expects the market to triple in the coming three years. “Our revenue right now is equally divided between the US and the UK. From this year onwards, we will start targeting the top 100 businesses in India across all the sectors,” he says. The company is aiming to achieve the $5 million-turnover mark in India in the next year.

AppLabs has 2,000 people on its payroll globally, out of which 1,600 work out of Hyderabad. “We plan to add 600 people this year, most of them in India,” Teje says. The company is also planning to enter into untapped territories like France and Germany. Teje says the improved perception of Indian entrepreneurs in particular, was helpful in setting up business in these countries.

The company was recently given the task of developing a testing format for an online equity trading platform. This project has the backing of nine major European banks including Merrill Lynch, Citbank and Goldman Sachs. “The prototype is expected to be delivered by October 2008 and if the program is continued, we will remain with them as software testing partners,” Teje says.

Recently, AppLabs was named one of the 50 fastest growing Asian American firms. The company, which posted revenue of $80 million last fiscal, expects to grow at 40 per cent in the 2009 fiscal.