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Software testing is big business in Malaysia, says IDC

  • Aggressive intervention can drive US$2.9bil market
  • MSTH Cluster programme launched to boost supply side equation

THE action in the tech ecosystem isn’t just confined to Internet startups. The Malaysian Software Testing Board (MSTB) is seeking Malaysian entrepreneurs and companies keen on venturing into the software testing services business. The market is growing globally, and domestic demand is also building up, according to analysts.
Based on the Economic Planning Unit Software Testing Roadmap Study 2013 report produced by IDC, the global software testing services market is projected to be worth US$94 billion (RM379 billion) in 2020.
The report also estimated that the Malaysian software testing services market was worth about US$319 million (RM1.29 billion) in 2012, and that this would grow to US$608 million in 2020, if left to natural market growth.

However, with aggressive intervention to drive the sector, the domestic market worth could grow to US$2.9 billion in 2020.

Software testing is big business in Malaysia, says IDC

Having a track record in software testing is useful, but a strong desire to make this a new business is equally important for those interested. Through the Malaysia Software Testing Hub (MSTH), an initiative led by MSTB, interested Malaysian companies can get help to build or enhance their testing capabilities, aligned to internationally-recognised standards and industry good practices.
As part of the efforts to help the supply side of the MSTH software testing ecosystem, MSTB has introduced the MSTH Cluster programme.
The MSTH Cluster is grouped into three types: Those comprising IVV (Independent Verification and Validation) service providers (MSTH IVV Cluster); ISO 17025 software testing laboratory service providers (MSTH 17025 Lab Cluster); and Authorised Training Providers (MSTH ATP Cluster).
On a broad level, it is envisioned that clusters will help enhance the overall competitiveness of products/ services generated within the clusters, optimise cost of operations, and prove a useful platform for discussions on software testing industry-related issues.  
With a current focus on the MSTH IVV Cluster, a development programme has been rolled out to help Malaysian companies in their journey to become a competent IVV vendor. Among others, the programme would help participating companies to enhance their software testing capabilities, in preparation for accreditation by Standards Malaysia.
Signifying its seriousness in building a strong software testing ecosystem, the Malaysian Government is using policy tools as a lever. A major initiative has been the introduction of Procurement Guidelines (PK 2/2013), which state that all strategic and high-impact ICT projects are required to include third-party testing, or IVV, and that the service providers engaged for the purpose must be accredited/ recognised by Standards Malaysia. See page 616 of the Guidelines for the specific mention.
In due course, qualified MSTH IVV Cluster companies will also have the opportunity to join the Q-Lab, a TMMi Level 5-certified testing facility operated by MSTB. This will help them in their international marketing and promotion activities.

Software testing is big business in Malaysia, says IDCMSTB president Mastura Abu Samah (pic) explains that the MSTH Cluster Development programme aims to create a pool of Malaysian companies capable of providing IVV services for both domestic and international markets.
She added that since MSTH’s inception in 2009, MSTB has carried out various activities to enhance market awareness and help generate demand for testing services.
“Domestic demand, led by the public sector, is now on the increase. A few major tenders on software testing have already been issued over the last few months and we can expect to see more coming.
“We want to make sure that there will be enough number of Malaysian companies to benefit from this demand,” she adds.
Under the 11th Malaysia Plan, the nation aspires to capture 5% of the global software testing services market by 2020. Further, the intent is to have Malaysian players to drive revenue growth and attain market leadership in this segment. These targets are spelt out in Strategy Paper 15 of the 11th Malaysia Plan.
Please email [email protected] for details on the next briefing session on the MSTH Cluster Development programme.


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