IT services provider CSC is broadening its horizontal reach and its applications development and management business with the acquisition of Hyderabad-based pure play software testing and quality management provider AppLabs.
It will add to CSC’s existing testing business, and with 120 active customers it will also increase its customer base, particularly in the UK and US. Financial terms were not disclosed. Investment firm WestBridge holds a 50% stake in the company.
Testing is an active area of IT services at the moment – last week SQS outperformed the software testing market in Q1 with 29% revenue growth (see SQS has good H1 but downgrades outlook). Given the tough year CSC has had due to NHS cost cutting, changes to the UK’s National Programme for IT in the NHS, and its necessary acquisition of subcontractor iSoft (see the HotViews archive here), it needs something positive to give it a boost.