In today's dynamic business world, every organization in any industry whether big or small is looking for alternatives to cut costs & reduce risks as they confront slower sales and ways to refine their operating models & transform business. The business is supported by technology so selection of IT Service vendors and the appropriate engagement model becomes an important criterion for clients, planning for business transformation. The SME (small and medium enterprises) has bigger challenges to survive in the big league competition. These firms have the vision and understanding of technology & marketing skills required to develop and sell the product or, service to their end users. But the biggest challenge that SME's are facing in the global world is to attract and retain right human talent, implementing right processes & business models and decisions on investments as required for strategic projects or, to support their business as usual activities. SME's are well aware of the importance of IT investment and in particular on software testing for their business.

The SME's also have challenges to adhere to, regulatory compliances like SOX, SAS 70, IAS etc. depending upon the industry it belongs to. Thus, these firms have to be more cautious on quality assurance side to meet regulatory compliances along with product testing. This also means that testing remains an essential element of operational efficiency and risk management. But SME'S don't have the muscle power to investment significantly in IT related costs or, for their product / software testing. The SME's were looking for such delivery and pricing models in their IT projects from their strategic vendors that are closely aligned to their business outcomes and reduces TCO (total cost of ownership) and market risks. The paper explains how STaaS (Software testing as a Service) & SaaS (Software as a Service), the innovative global delivery models for software delivery & software testing respectively devised by IT vendors works and can significantly reduce TCO (total cost of ownership) for SME's by paying only for the value delivered to their business with no compromise in software delivery or, testing service. The paper also highlights that STaaS & SaaS is a winning combination for SME in today's uncertain economy to transform their business. The business value to SME is also demonstrated by calculated metrics.

Sushil Yadav, PMP is Project Manager in Capgemini's Financial Services group. He has extensive experience in managing Capital Market testing projects for investment banking clients. He has also worked as business consultant with Fortune 500 product companies developing financial software.