Leadership insight: Anand Moorthy, Capgemini

Capgemini, the multinational professional services and business consultancy, looks ahead to expanding its testing business by targeting insurers struggling to bring development of their back-end legacy systems in line with the new way of agile thinking, and adjusting its strategy to focus on workforce transformation

Since its formation in 1967 by the Serge Kampf, Capgemini has completed over 40 acquisitions, expanded into over 50 countries, and has over 190,000 employees. In 2016, the group reported revenues of EUR12.5 billion, with digital and cloud offerings (including testing solutions) accounting for 30% of this total. Capgemini’s testing practice comprises over 30,000 individuals, with the USA being its current largest market.

Capgemini’s 2017 Word Quality Report, produced alongside its technology and engineering services subsidiary Sogeti, highlighted key challenges that the Group currently faces when trying to grow its testing business in the evolving financial services market. The report, published in September this year, showed a decrease in the importance and relevance of Test Centres of Excellence (TCoEs), the quality assurance “factory” model that gained popularity over recent years. The report also identified the obstacles that need to be overcome when dealing with insurers – which have been slower to adopt agile methodologies and have trouble bringing back-end legacy systems in line with agile and DevOps methodologies.

Anand Moorthy, based in Chicago, is VP & Head of Capgemini’s Financial Services Testing Practice. He is responsible for testing services offered to the banking and capital markets for the Americas and runs all of the test consulting, alliances and marketing within the practice.

With its huge, well-established testing practice, how is Capgemini going to adapt to the changes in the software testing sphere? QA Financial spoke to Moorthy about how Capgemini intends to keep up with the pace of the agile nature of digital transformation.

Q: Why is Capgemini better placed than your competitors to help financial firms address challenges that they face when automating testing?

We see more and more financial services undertaking digital transformation, and over the last couple of years in particular, we have found that speed to market is a major challenge for testers. Nowadays, testing has to be up to speed with application delivery, especially around digital and mobile platforms, as more and more companies adopt agile methodologies.

The second challenge we have identified is that our customers are struggling to find testers with the necessary skillset to maintain and develop automated testing processes. There are a lack of skills in the marketplace and we can see that there needs to be huge workforce transformation, be it around agile delivery, quality assurance in the DevOps world, test environment, data or test strategy.

This is where Capgemini comes in. Capgemini’s 2017 World Quality Report revealed that companies are moving away from traditional TCoEs and need to concentrate on a strategy that will transform the workforce by structuring teams that are close to development and business. As software is becoming more complex, teams need reskilling and also need the know-how to work in a collaborative manner which is what Capgemini is known for in the industry. The industry is moving away from insourcing or outsourcing testing to collaboration especially in scrum and agile teams, and Capgemini has decades of experience in working in a collaborative manner which is a key differentiator for us.

Q: What are the key new opportunities for Capgemini in terms of testing services?

A key opportunity for us, which was highlighted in the World Quality Report, is legacy modernisation, particularly for insurers. In insurance, companies face frequent rate and form changes and automation has the potential to speed up the testing of how these changes are implemented across legacy applications. Although automation may be a challenge here because changes can apply to multiple technologies, test automation is not impossible, and investment in this area will offer rewards.

I also think that machine learning and predictive analytics is untouched in today’s industry, and I think a lot of focus will be brought onto this in the coming years and even months. We have seen a lot of investment in artificial intelligence and machine learning from our financial services customers, particularly as these solutions can significantly aid automation as evidenced by big bank’s large investment in digital modernisation.

Another area we see an opportunity is in test environment modernisation, particularly with agile delivery where the environment challenges exponentially increase.

In line with test environments is test data management and optimisation in a highly regulated financial environment, for example the EU’s General Data Protection Regulation.

Q: How does Capgemini use its relationship with Sogeti?

Sogeti is a wholly-owned subsidiary of Capgemini, which provides testing solutions for professional services and has a very strong customer base in Europe. Capgemini’s testing practice does collaborate with Sogeti on occasion; we leverage each other’s solutions and we leverage each other’s alliances.

Q: Where does Capgemini stand in comparison to your competitors? What is your edge?

Our main competitors are Accenture, Cognizant, TCS and, sometimes, Infosys.

Capgemini has been contributing to the testing industry for years and has well-established testing methodologies like TMap, our structured approach to the testing of software products. We also have a very strong and loyal customer base and deliver more specialised services around our IPs.

Capgemini tends to have the edge in that we deliver more specialised services, especially around our own technology platforms. We have also focused on building IPs and technology platforms with our partner domains as well as open source tools. What we have done in the agile and quality assurance space is way ahead of the competition, and we do see that especially when we compete for deals and are able to stand out from the crowd.

Q: What are the challenges that all major testing providers are facing when dealing with clients within banking, finance and insurance services?

The challenges are similar across the industry, but I think the main challenge we are all facing is workforce transformation.

If you look at the expectations of a tester, over the last couple of years these expectations have changed. A tester is now expected to be the full package – domain knowledge and technology savviness are critical in testers. This is what we are investing in: building the competency of our clients’ teams. Pure black box testers are a thing of the past, they are like dinosaurs. The pressure is also definitely there with regards to margins. Clients need to see a return on their investments, but building a competent and skilled team is critical. We have certainly made some investing in this area and are seeing results.

Another challenge is building competency in the test environment space. Test environments are the biggest challenge to agile delivery and building skills in testing infrastructure as a service will be key for the testing community.

Q: In such an agile market, what’s next for Capgemini’s testing practice?

There are exciting times ahead for Capgemini. Testing is an area of focus for us and a space in which we are investing heavily in; be it in terms of people, in terms of technology, or keeping ahead in the marketplace. We are looking forward to growing. Capgemini’s financial services currently includes banks, capital markets, insurers and healthcare services, but this is also set to evolve in 2018 by becoming more agile and aligned to the markets.

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