Tuesday, 8 September 2009

Less testing markets for SQS

(By Anthony Miller – Tuesday 8th September 2009 8:30am). Confirming its pre-close trading update (see SQS back on even keel for now), the self-styled “world’s largest supplier of independent software testing and quality management services”, SQS, reported a stabilising German market and “encouraging signs of growth” in the UK (see here). Just as well as its UK business declined 21% at constant currencies to €16m in first half whereas Germany ‘only’ fell 5%. Management are pursuing two key initiatives to help support margins: more ‘output-based’ managed services contracts, and more offshore delivery. They now have 23% of their 1,430 employees offshore, so there is still a long way to go to reach SQS’ 75% long-term target (see SQS tests India – and a lot more besides!). Phil Carnelley is on his way to the briefing and will bring you more later.

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