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About us

Founded in 1982, Software Quality Systems AG (SQS) is the leading global specialist in end-to-end quality services. SQS consultants provide proven solutions for all aspects of quality throughout the whole software product lifecycle to sustainably optimise our customers’ business processes through quality assurance in software and IT systems.

In 2016, SQS generated revenues of €327.1 million. 

The company operates through three core business units:

Managed Services (MS): to meet the demand of clients seeking efficiency in long-term engagements (between 12 months and five years) of which a growing share is delivered from nearshore and offshore delivery centres. This also includes long term engagements for quality assurance services on standard software package products;

Management Consulting (MC): to meet the demand of clients seeking transformation and quality through IT Portfolio Programme and Project Management, Digital Transformation Consulting, Business & Enterprise Architecture, Process Modelling and Business Analysis;

Professional Services (PS): to meet the demand of more price conscious clients in IT projects who tend to be given a smaller number of consultants on a more local basis and typically contracted for a short term period;

Other: alongside these major segments we conduct business with contractors, training & conferences and software testing tools.

Global presence

Headquartered in Cologne, Germany, the company employs approximately 4,400 staff. SQS has offices in Germany, UK, US, Australia, Austria, Egypt, Finland, France, India, Ireland, Italy, Malaysia, the Netherlands, Norway, Singapore, South Africa, Sweden, Switzerland and UAE. In addition, SQS maintains a minority stake in a company in Portugal.

SQS is the first German company to have a primary listing on AIM (ticker: SQS.L), a market operated by the London Stock Exchange. In addition, SQS shares are also traded on the German Stock Exchange in Frankfurt am Main. 

With over 10,000 completed projects under its belt, SQS has a strong client base, including half of the DAX 30, nearly a third of the STOXX 50 and 20 per cent of the FTSE 100 companies.  

Our approach and relevance

Our focus and passion since we were founded over 35 years ago is software quality assurance for any software based business process and IT system. In an increasingly digitalised world, our solutions are an integral part of all business processes across every sector and industry globally with both corporate reputations and business efficiencies driven by effective IT systems. The cost of failure is huge, meaning quality assurance across the whole software product lifecycle is more critical than ever for companies operating in this new digital environment.

Addressable market

As companies seek end to end IT solutions that work now, as well as for the future, SQS’ addressable market continues to grow, fuelled further by demand for digital transformation and business process automation consulting services (AI, robotics, machine learning and process automation).

According to Nelson Hall, the global addressable quality assurance services market is worth $20bn (Nelson Hall Study, July 2016) and growing 7% per annum. The US is forecast to grow 8%, while Europe and Asia are expected to grow at 6% per year, well above the predicted 2% growth in the IT services market.

With so much to play for, our goal is to be the ‘go to’ for companies facing the transition to automated, more efficient processes by offering world-class unrivalled solutions across geographies.

Our footprint

We have a broad geographic reach, with limited exposure to any one region. Our largest market is currently Germany (31%* revenues), followed by the US (16%* revenues) which – as the world’s largest technology market – offers a significant growth opportunity for the company.

Strategy:

  • Our consultancy led solutions will shape and drive results by:  
    1. Delivering world class quality in software products, systems, processes and business networks
    2. Managing risk and compliancy in a more complex world
    3. Driving digitalisation, innovation and business agility in a rapidly changing world
  • Grow market share through focus on higher margin client engagements that drive sustained profitability
  • Further invest in diversifying and enhancing product and service offering to position SQS for digital transformation projects, such as AI and robotics, where SQS can lead the way
  • Continue to increase geographic footprint and customer base in existing and new territories organically and through acquisitions
  • Capitalise on opportunities in the US through more targeted marketing

*all stats as at FY 2016

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