The company currently caters to the software testing market in the US and Europe. The US market contributes about 55 per cent, while 45 per cent comes from the UK and Europe.

With Indian firms increasing their IT spent, the company believes that there will be a segment looking for testing capability.

Makarand Teje, president and COO, Applabs says, "Organisations are realising that testing is not just another siloed process, and are increasingly looking at shared services agreement for increasing efficiency and productivity gains."

While the company has been catering to the BFSI, retail, transportation and utilities, in the domestic market it will focus on BFSI, retail, and the telcos.

Applabs competes with IBM, Accenture in the field of software testing.

Says Teje, "Our differentiation factor is that we are the only pure play software testing player in the market. And we are so focused on the work that even if someone asks us to do anything else we turn it down."

According to Gartner, the worldwide market for testing services is forecasted to grow to $13 billion by 2010, with 45-50 per cent (around $6 billion) getting outsourced.

Software testing is one of the fastest growing segments within the IT services industry. Though, on an average, software services are growing at about 10-12 percent, testing is growing at more than 50 percent per annum.

Applabs in the last two years acquired two companies - Keylabs and IS Integration.