The Continued Business Case for Test Centres of Excellence 

As digital transformation accelerates, IT departments face increasing pressure to deliver high-quality software faster and at a lower cost. At QA Consultants, our Test Center of Excellence (TCoE) framework has become the cornerstone for organizations aiming to optimize quality assurance (QA), reduce expenses, and mitigate risk. With QA spending comprising up to 35% of IT budgets, TCoEs provide a strategic, efficient approach to testing that balances speed, quality, and cost-efficiency.

TCoEs in a Distributed, Globalized IT Landscape

In today’s IT environment, the drive to optimize costs has led many organizations to explore offshoring, nearshoring, and distributed team models. According to Deloitte’s 2023 Global Outsourcing Survey, over 70% of companies outsource or offshore some aspect of their IT and QA functions. However, relying on offshore models alone has posed challenges, including communication barriers, time zone discrepancies, and quality inconsistencies.

The TCoE model is uniquely positioned to work effectively within a globalized, distributed team framework, providing the governance, standardization, and consistency needed to optimize quality across geographies. “A TCoE acts as the central hub that aligns distributed teams around shared standards, tools, and processes,” explains Alex Rodov, CEO of QA Consultants and author of The Book on Testing.“ Rather than letting geographic distances create barriers, we harness them to provide around-the-clock testing that doesn’t compromise quality or accountability.”

Addressing Offshoring Challenges with a Centralized TCoE

Offshoring has traditionally been a popular choice to lower costs, but it often introduces quality and oversight challenges. According to Gartner’s 2023 IT Quality Report, 60% of companies using offshore testing report difficulty in managing quality due to time zone differences and remote communication barriers. A TCoE provides a centralized framework that mitigates these issues by standardizing tools, processes, and metrics across all locations.

In our work with a North American automotive leader, QA Consultants helped establish a TCoE that coordinated testing teams across three countries. By creating a centralized oversight model, the TCoE enabled the automotive company to maintain quality control and ensure continuous testing, ultimately reducing defect rates by 40% and improving project alignment across its global teams.

“Offshoring can be valuable, but only when the right controls and standards are in place,” says Rodov. “The TCoE provides the necessary structure to ensure that no matter where the testing occurs, it aligns with the company’s objectives, timelines, and quality standards.”

Leveraging Nearshoring and Hybrid Models for TCoE Success

Nearshoring—the practice of outsourcing to countries closer in proximity and time zone—has gained traction as companies seek to combine the cost benefits of offshoring with the flexibility of closer collaboration. KPMG’s 2022 Sourcing Trends Report notes that nearshoring has grown by 25% in the last two years as companies strive for real-time collaboration and reduced operational friction.

The TCoE model is well-suited to support nearshoring and hybrid models by creating a “single source of truth” that nearshore teams can easily access, enabling seamless communication and consistent quality across locations. In QA Consultants’ project with a leading financial services firm, the TCoE framework coordinated efforts between Canada-based QA teams and nearshore teams in Latin America. This setup provided the financial firm with cost-effective resources, real-time collaboration, and standardized QA practices, reducing time-to-market by 30% while maintaining rigorous compliance and quality standards.

Rodov emphasizes, “The TCoE allows for seamless integration of nearshore teams without losing control or consistency. It’s about bringing the strengths of each region together under a cohesive, quality-focused framework.”

Distributed Teams and the TCoE: Building a Global, Agile QA Network

In today’s agile development environment, distributed teams have become the norm. As McKinsey’s 2024 IT Transformation Report highlights, companies with global teams are increasingly adopting TCoE models to ensure standardized QA practices and clear communication lines. The TCoE model offers the flexibility to integrate distributed teams across different time zones, enabling organizations to leverage follow-the-sun testing models that accelerate development timelines.

With a TCoE at the helm, organizations can strategically allocate QA tasks to teams in different locations, optimizing for time zone advantages and specific skill sets. Our collaboration with a global telecom provider showcased the TCoE’s adaptability with distributed teams, where testing cycles were divided between teams in North America, Asia, and Europe. By implementing a follow-the-sun model, the provider achieved 24/7 testing capabilities, reduced release times by 28%, and maintained high standards of QA regardless of location.

“A distributed team setup is an asset when the TCoE ensures accountability, standardization, and flexibility,” Rodov notes. “With a TCoE, companies gain the ability to provide continuous testing and quality checks while respecting the unique contributions and schedules of each team around the globe.”

How TCoEs Drive ROI by Optimizing Distributed Testing Models

The TCoE framework can maximize ROI by supporting distributed models, whether offshoring, nearshoring, or using hybrid approaches. Key benefits include:

• Enhanced Collaboration and Communication: TCoEs enable consistent communication channels and standardized reporting formats, allowing distributed teams to align on objectives and track progress in real time.
• Reduced Risk and Quality Consistency: Centralized control and standardized practices minimize the risk of quality issues, regardless of location, ensuring that each team contributes to the overall success of QA efforts.
• Flexible Resource Allocation: The TCoE model allows organizations to deploy resources efficiently across time zones and geographies, leveraging cost advantages while maintaining high standards.
• Faster Time-to-Market: By integrating distributed teams into a follow-the-sun model, TCoEs enable continuous testing, accelerating release cycles without compromising quality.

“Distributed teams allow companies to optimize resources globally, but without a TCoE, the potential is often lost,” says Rodov. “A TCoE provides the structure that binds these teams together, delivering cost savings, faster releases, and higher quality products for our clients.”

QA Consultants’ Strategic Approach to TCoE Implementation in a Globalized Market

Establishing a TCoE that effectively manages distributed teams requires a thoughtful, phased approach. Based on our extensive experience, QA Consultants recommends the following steps:

1. Define Clear Objectives and Standards: Start by outlining goals and metrics that align with organizational objectives. This ensures that teams, whether nearshore or offshore, work toward the same quality outcomes.
2. Select and Standardize Tools: Unified tools are critical for cross-geographic testing. Standardizing on a core set of tools that integrate well with development and project management platforms enables seamless handoffs and real-time tracking.
3. Establish Robust Communication Protocols: To prevent the common communication pitfalls of offshoring, TCoEs should implement regular updates, dashboards, and reporting structures that allow real-time visibility for all teams.
4. Foster a Culture of Accountability and Quality: Creating a culture of excellence, regardless of location, is essential. TCoEs establish quality standards and training programs that set a high bar for every member of the team, wherever they may be.

“In the globalized market, a TCoE is not just an option—it’s a necessity for any organization relying on distributed teams,” Rodov explains. “The TCoE framework combines the flexibility of remote teams with the rigor of centralized quality standards, offering a competitive edge in today’s fast-paced environment.”

Embrace the Future of Testing with QA Consultants’ TCoE

As industries across the board recognize the need for agile, efficient, and distributed testing models, QA Consultants remains at the forefront with our TCoE framework. By strategically integrating offshoring, nearshoring, and distributed teams under a unified TCoE, we enable clients to unlock their full potential in QA while achieving consistency, scalability, and cost savings.

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