I am very pleased to reconnect with you and outline the glimpses of our performanceduring the last year.
New age business demands continuous testing backed by quality and delivered at speed.Enterprises are deploying Agile and DevOps practices for enhancing customer experience andcreating value. Forrester's Data Global Business Technographics Developer Survey 2016cites that the teams delivering code on a monthly basis grew from 33% in 2015 to 36% in2016. This transference is a key business enhancer for consolidating our position in theindependent software testing arena. We are confident that our 10 Commandments of QualityEngineering would guide the New Age Businesses to accomplish Market Leadership.
NelsonHall IT Services July 2016 report estimated that the Global Testing Spending had6% share of the total IT Ispending.
It valued the total (global) testing spending (including both Specialized TestingServices and Traditional Testing Services) at $38.2 bn in 2015 and forecasted to touch$42.8 bn in 2020. NelsonHall has revised its guesstimates for Specialized Testing Services(STS) in the range of 7-8% growth owing to growing preference of new age business towardsspecialized and digital testing offerings against core function testing. The report citesthat BFS organizations in North America and the U.K. (including Europe and ANZ) will scoutfor cost optimization and market acceleration with quality. With Cloud computingspearheading the Digital Testing spending growth by 18% in the STS the STS are expectedto grow at 7% p.a. while the Traditional Testing Services would de-grow by 3% p.a. Thedigital spending pie is expected to be at 19% of the total Specialized Testing Services by2020 from 13% in 2015.
FY17 was very eventful and we took some very strategic decisions for the future ofCigniti. Mr. Srikanth Chakkilam has been appointed as the Chief Executive Officer (CEO) ofCigniti Technologies Ltd. that would drive the Company towards new heights. Furthermorethe inclusion of Mr. Phaneesh Murthy to the board as a Non-Executive Director will alsoprovide strategic insights for achieving overall business growth. Strengthening of theleadership at the top gratifies me that we are well equipped for becoming the preferredchoice of the new age enterprises for meeting their digital demands.
BlueSwanTM our next generation proprietary platform was launched toaccelerate the quality engineering needs of digital enterprises. It is a key enablerfortifying our leadership in independent testing services. With One Cigniti we are nowthe second largest software testing pure-play player by headcount. During the year weinaugurated two new Test Engineering centers to our Global Delivery Center at HyderabadIndia. We have continued to forge strategic partnerships in our managed services andcontinuous testing portfolios.
During the year we garnered several analyst mentions. We are proud to be consistentlypositioned in the Gartner's Magic Quadrant for 2 years in a row. Gartner positioned us asa 'Niche Player' in 2016 Magic Quadrant for Application Testing Services Worldwide. TheEverest Group positioned as a 'Star Performer' and 'Major Contender' in the Everest GroupPEAK Matrix for Independent Testing Report 2016. The Everest Group has once againconferred us with the 'Best in Class' rating for 'Buyer Satisfaction' in the ServiceProvider Assessment. Forrester cited us in multiple Testing Reports. NelsonHall ranked usas a 'Leader' in Pure Play Digital Consulting segments and the Overall market segmentin the Software Testing NEAT Charts and mentioned Cigniti as the Second Largest softwaretesting pure-play Company by headcount.
We were also bestowed with various awards and accolades in FY17. We were honored as theBEST EMPLOYER BRANDS AWARD @ the 11th Employer Branding Awards (RegionalRound). We also won the SmartCEO 2017 Future 50 Award.
The total revenue for the year stood at Rs.61926 Lakh as against Rs.59484 Lakh in FY16. The company registered a net loss of Rs.43823.78 Lakh. This is mainly on account ofcharging of exceptional items and charging of expenditure as per accounting guidelines asexplained in detail in our notes to accounts section. These are one-time in nature andthe company is confident of its continued growth performance for the ensuing years.
We have set our global footprints in 5 continents and 13 countries catering over 350satisfied clienteles. We serve 71 of the Global 2000 50 of the Fortune 1000 and 42 ofFortune 500 Companies. We are associated with key clients across industry verticals. Ourdedicated 'human capital' consists of p over 2200 valuable resources including 2000+career testers.
In 2016 LiQE our flagship Global Thought Leadership Event for Quality
Engineering went global with six editions being organized across Dallas New YorkCalifornia London and Sydney. It was lauded amongst software testing professionalsacross geographies attended by Clients Prospects and Partners. Over the years we havebuilt strategic partnerships successful acquisitions and have created capabilities toincorporate acquisitions across cultures.
Further the Company shall continue to invest in R&D in a measured way to maintainits competitive advantage of its software testing service business. The investments shallbe in the areas of new age DevOps Agile Digital Cyber Security loT and Cloudcomputing areas as per ever changing business needs. Further the Company is takingadequate measures to charge these investments periodically and shall not accumulate thesame in its books.
We have reinforced our vertical focus - Airlines Banking Financial ServicesHealthcare Insurance Life Science Retail and Travel & Hospitality via committeddomain competency group under the global delivery leadership. Our state-of-the-art testinginfrastructure is proficient to satisfy our spectrum of clientele across domains andgeographies.
With the above continued efforts the Company is confident of achieving a robust growthin the ensuing years. This confidence is further substantiated by the healthy order bookposition and clear visibility on the order pipeline. We genuinely work towards bridgingthe communal gaps through our CSR initiatives. 'Cignificance' strives to bringtransformational changes in the area of free and quality education.
Finally I take this rare opportunity to thank our stakeholders for rendering theircontinuous support and a strong belief in us. I would especially like to give a vote ofthanks to all the Cignitians for their perennial positivity aiding us to surmount newpeaks.
C. V. Subramanyam
Chairman & Managing Director.