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Posted by Margo Visitacion on September 14, 2011
CSC announced today that it is acquiring AppLabs, a US-based IV&V testing vendor. At first glance, it's a win, maybe a win for both sides. CSC states that one of the reasons that it acquired AppLabs is to augment its horizontal application strategy - due to AppLabs' presence in the US and UK (both vendors have firmly rooted practices in both markets) and to leverage AppLabs' testing strength in both custom and package applications. It's clearly a win for CSC:
For AppLabs, it's a maybe win. The acquisition will expose AppLabs to a much wider audience than it already had and provides it with the opportunity to expand its footprint, but as with any acquisition, it comes with some risk:
This acquisition can transition into a win-win if CSC allows AppLabs to retain the singular focus it has had to service the evolving applications market and if it lets AppLabs become CSC's testing specialist.
What does it mean for app dev professionals?
1. Short term - AppLabs will keep its focus on its specialties. If you're considering it for augmenting a test program or for testing applications, keep on track. AppLabs' methodology and approach is strong; even with integration, we think the vendor will stay the course.
2. Long term - Question strategy. While we think CSC is acquiring AppLabs to better manage its clients' application strategies, it's critical that in developing a broader systems integration offering, it doesn't lose the AppLabs' approach in the shuffle. AppLabs provides a specific and valuable service. Make sure that as the two vendors integrate, AppLabs' approach isn't diluted as it becomes part of the larger organization - especially if Agile development is part of your long-term approach.
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