diff --git a/packages/service-integration/Dockerfile b/packages/service-integration/Dockerfile
index 239fef48ade..e7f1ca24cb5 100644
--- a/packages/service-integration/Dockerfile
+++ b/packages/service-integration/Dockerfile
@@ -3,6 +3,29 @@ FROM python:${PYTHON_VERSION}-slim-buster as base
 
 LABEL maintainer=pcrespov
 
+RUN set -eux \
+  && apt-get update \
+  && apt-get install -y \
+  git \
+  && rm -rf /var/lib/apt/lists/* \
+  # verify that the binary works
+  && git --version
+
+# simcore-user uid=8004(scu) gid=8004(scu) groups=8004(scu)
+ENV SC_USER_ID=8004 \
+  SC_USER_NAME=scu \
+  SC_BUILD_TARGET=base \
+  SC_BOOT_MODE=default
+
+RUN adduser \
+  --uid ${SC_USER_ID} \
+  --disabled-password \
+  --gecos "" \
+  --shell /bin/sh \
+  --home /home/${SC_USER_NAME} \
+  ${SC_USER_NAME}
+
+
 # Sets utf-8 encoding for Python et al
 ENV LANG=C.UTF-8
 # Turns off writing .pyc files; superfluous on an ephemeral container.
@@ -52,6 +75,8 @@ FROM base as development
 # NOTE: this is necessary to allow to build development images but is the same as production here
 FROM base as production
 
+USER scu
+
 COPY --from=build --chown=scu:scu ${VIRTUAL_ENV} ${VIRTUAL_ENV}
 
 # NOTE: do not activate ENV PYTHONOPTIMIZE=TRUE since excutable contains pytest code
diff --git a/packages/service-integration/Makefile b/packages/service-integration/Makefile
index 0556c4832e1..ad12089fa46 100644
--- a/packages/service-integration/Makefile
+++ b/packages/service-integration/Makefile
@@ -85,10 +85,21 @@ build build-nc: ## [docker] builds docker image of executable w/ or w/o cache
 	docker run local/${PACKAGE_NAME}:production --version
 
 .PHONY: inspect
-inspect:
-	docker image inspect local/${PACKAGE_NAME}:production | jq '.[0] | .RepoTags, .Config.Labels, .Architecture'
+inspect: ## [docker] inspects container
+	docker image inspect \
+		local/${PACKAGE_NAME}:production | jq '.[0] | .RepoTags, .Config.Labels, .Architecture'
 
 
+_src_dir = $(if $(target),$(target),$(PWD))
+
 .PHONY: shell
-shell:
-	docker run -it --entrypoint bash local/${PACKAGE_NAME}:production
+shell: ## [docker] opens shell in container
+	docker run \
+		-it \
+		--volume="/etc/group:/etc/group:ro" \
+		--volume="/etc/passwd:/etc/passwd:ro" \
+		--user="$(shell id --user "$(USER)")":scu \
+		--entrypoint bash \
+		--volume "$(_src_dir)":/src \
+		--workdir=/src \
+		local/${PACKAGE_NAME}:production
diff --git a/packages/service-integration/VERSION b/packages/service-integration/VERSION
index 6d7de6e6abe..21e8796a09d 100644
--- a/packages/service-integration/VERSION
+++ b/packages/service-integration/VERSION
@@ -1 +1 @@
-1.0.2
+1.0.3
diff --git a/packages/service-integration/requirements/_base.txt b/packages/service-integration/requirements/_base.txt
index bc45730d5f6..18663acce68 100644
--- a/packages/service-integration/requirements/_base.txt
+++ b/packages/service-integration/requirements/_base.txt
@@ -26,6 +26,8 @@ docker==6.0.0
     # via -r requirements/_base.in
 email-validator==1.3.0
     # via pydantic
+exceptiongroup==1.0.0
+    # via pytest
 idna==3.4
     # via
     #   email-validator
@@ -42,8 +44,6 @@ packaging==21.3
     #   pytest
 pluggy==1.0.0
     # via pytest
-py==1.11.0
-    # via pytest
 pydantic==1.10.2
     # via
     #   -c requirements/../../../packages/models-library/requirements/../../../requirements/constraints.txt
@@ -55,7 +55,7 @@ pyparsing==3.0.9
     # via packaging
 pyrsistent==0.18.1
     # via jsonschema
-pytest==7.1.3
+pytest==7.2.0
     # via -r requirements/_base.in
 pyyaml==6.0
     # via
diff --git a/packages/service-integration/requirements/_test.txt b/packages/service-integration/requirements/_test.txt
index 9b09328e405..1d16741f3b9 100644
--- a/packages/service-integration/requirements/_test.txt
+++ b/packages/service-integration/requirements/_test.txt
@@ -29,6 +29,10 @@ dill==0.3.5.1
     # via pylint
 docopt==0.6.2
     # via coveralls
+exceptiongroup==1.0.0
+    # via
+    #   -c requirements/_base.txt
+    #   pytest
 idna==3.4
     # via
     #   -c requirements/_base.txt
@@ -54,17 +58,13 @@ pluggy==1.0.0
     # via
     #   -c requirements/_base.txt
     #   pytest
-py==1.11.0
-    # via
-    #   -c requirements/_base.txt
-    #   pytest
 pylint==2.15.4
     # via -r requirements/_test.in
 pyparsing==3.0.9
     # via
     #   -c requirements/_base.txt
     #   packaging
-pytest==7.1.3
+pytest==7.2.0
     # via
     #   -c requirements/_base.txt
     #   -r requirements/_test.in
diff --git a/packages/service-integration/scripts/ooil.bash b/packages/service-integration/scripts/ooil.bash
new file mode 100755
index 00000000000..c664737a869
--- /dev/null
+++ b/packages/service-integration/scripts/ooil.bash
@@ -0,0 +1,27 @@
+#!/bin/bash
+# http://redsymbol.net/articles/unofficial-bash-strict-mode/
+
+set -o errexit
+set -o nounset
+set -o pipefail
+IFS=$'\n\t'
+
+
+IMAGE_NAME="${DOCKER_REGISTRY:-itisfoundation}/service-integration:${DOCKER_IMAGE_TAG:-master-github-latest}"
+WORKDIR="$(pwd)"
+
+run() {
+  docker run \
+    -it \
+    --rm \
+    --volume="/etc/group:/etc/group:ro" \
+    --volume="/etc/passwd:/etc/passwd:ro" \
+    --user="$(id --user "$USER")":"$(id --group "$USER")" \
+    --volume "$WORKDIR":/src \
+    --workdir=/src \
+    "$IMAGE_NAME" \
+    "$@"
+}
+
+
+run "$@"
diff --git a/packages/service-integration/setup.cfg b/packages/service-integration/setup.cfg
index 1d3f961714d..af7998eb1a3 100644
--- a/packages/service-integration/setup.cfg
+++ b/packages/service-integration/setup.cfg
@@ -1,5 +1,5 @@
 [bumpversion]
-current_version = 1.0.2
+current_version = 1.0.3
 commit = True
 message = service-integration version: {current_version} → {new_version}
 tag = False
diff --git a/packages/service-integration/setup.py b/packages/service-integration/setup.py
index 0c90b903958..b891719c58c 100644
--- a/packages/service-integration/setup.py
+++ b/packages/service-integration/setup.py
@@ -70,6 +70,12 @@ def read_reqs(reqs_path: Path) -> set[str]:
     packages=find_packages(where="src"),
     package_dir={"": "src"},
     include_package_data=True,
+    package_data={
+        "": [
+            "service/tests/**/*.py",
+            "service/tests/unit/*.py",
+        ]
+    },
     test_suite="tests",
     tests_require=TEST_REQUIREMENTS,
     extras_require={},
diff --git a/packages/service-integration/src/service_integration/cli.py b/packages/service-integration/src/service_integration/cli.py
index d9c5f6d6c20..50dd85eb035 100644
--- a/packages/service-integration/src/service_integration/cli.py
+++ b/packages/service-integration/src/service_integration/cli.py
@@ -6,7 +6,7 @@
 import typer
 
 from ._meta import __version__
-from .commands import compose, config, metadata, run_creator
+from .commands import compose, config, metadata, run_creator, test
 from .settings import AppSettings
 
 app = typer.Typer()
@@ -54,6 +54,7 @@ def main(
 # new
 app.command("compose")(compose.main)
 app.command("config")(config.main)
+app.command("test")(test.main)
 # legacy
 app.command("bump-version")(metadata.bump_version)
 app.command("get-version")(metadata.get_version)
diff --git a/packages/service-integration/src/service_integration/commands/compose.py b/packages/service-integration/src/service_integration/commands/compose.py
index 80e9b7e105e..ae68a660df2 100644
--- a/packages/service-integration/src/service_integration/commands/compose.py
+++ b/packages/service-integration/src/service_integration/commands/compose.py
@@ -34,13 +34,19 @@ def _run_git(*args) -> str:
 def _run_git_or_empty_string(*args) -> str:
     try:
         return _run_git(*args)
+    except FileNotFoundError as err:
+        error_console.print(
+            "WARNING: Defaulting label to emtpy string",
+            "since git is not installed or cannot be executed:",
+            err,
+        )
     except subprocess.CalledProcessError as err:
         error_console.print(
             "WARNING: Defaulting label to emtpy string",
             "due to:",
             err.stderr,
         )
-        return ""
+    return ""
 
 
 def create_docker_compose_image_spec(
diff --git a/packages/service-integration/src/service_integration/commands/test.py b/packages/service-integration/src/service_integration/commands/test.py
new file mode 100644
index 00000000000..b08c5a85c03
--- /dev/null
+++ b/packages/service-integration/src/service_integration/commands/test.py
@@ -0,0 +1,21 @@
+from pathlib import Path
+
+import rich
+import typer
+
+from ..service import pytest_runner
+
+
+def main(
+    service_dir: Path = typer.Argument(
+        ..., help="Root directory of the service under test"
+    ),
+):
+    """Runs tests against service directory"""
+
+    if not service_dir.exists():
+        raise typer.BadParameter("Invalid path to service directory")
+
+    rich.print(f"Testing '{service_dir.resolve()}' ...")
+    error_code = pytest_runner.main(service_dir=service_dir, extra_args=[])
+    raise typer.Exit(code=error_code)
diff --git a/packages/service-integration/src/service_integration/pytest_plugin/__init__.py b/packages/service-integration/src/service_integration/pytest_plugin/__init__.py
index e69de29bb2d..3186eb70fed 100644
--- a/packages/service-integration/src/service_integration/pytest_plugin/__init__.py
+++ b/packages/service-integration/src/service_integration/pytest_plugin/__init__.py
@@ -0,0 +1,22 @@
+import warnings
+
+warnings.warn(
+    f"{__name__} is deprecated for cookiecutter-osparc-service>0.4.Use directoy test CLI instead."
+    "See https://github.com/ITISFoundation/cookiecutter-osparc-service/releases/tag/v0.4.0",
+    DeprecationWarning,
+)
+
+
+def pytest_addoption(parser):
+    group = parser.getgroup("service-integration")
+    group.addoption(
+        "--service-dir",
+        action="store",
+        help="Base directory for target service",
+    )
+
+    group.addoption(
+        "--metadata",
+        action="store",
+        help="metadata yaml configuration file",
+    )
diff --git a/packages/service-integration/src/service_integration/pytest_plugin/folder_structure.py b/packages/service-integration/src/service_integration/pytest_plugin/folder_structure.py
index 714a391e4eb..dc1e57fbee4 100644
--- a/packages/service-integration/src/service_integration/pytest_plugin/folder_structure.py
+++ b/packages/service-integration/src/service_integration/pytest_plugin/folder_structure.py
@@ -1,17 +1,22 @@
 # pylint: disable=redefined-outer-name
 # pylint: disable=unused-argument
 # pylint: disable=unused-variable
-import sys
 from pathlib import Path
 
 import pytest
 
-current_dir = Path(sys.argv[0] if __name__ == "__main__" else __file__).resolve().parent
-
 
 @pytest.fixture(scope="session")
-def project_slug_dir() -> Path:
-    raise NotImplementedError("Override fixture 'project_slug_dir' REQUIRED")
+def project_slug_dir(request: pytest.FixtureRequest) -> Path:
+    try:
+        root_dir = Path(request.config.getoption("--service-dir"))
+    except TypeError:
+        pytest.fail("--service-dir is not set")
+
+    assert isinstance(root_dir, Path)
+    assert root_dir.exists()
+    assert any(root_dir.glob(".osparc"))
+    return root_dir
 
 
 @pytest.fixture(scope="session")
@@ -20,20 +25,6 @@ def project_name(project_slug_dir: Path) -> str:
     return project_slug_dir.name
 
 
-@pytest.fixture(scope="session")
-def src_dir(project_slug_dir: Path) -> Path:
-    _src_dir = project_slug_dir / "src"
-    assert _src_dir.exists()
-    return _src_dir
-
-
-@pytest.fixture(scope="session")
-def tests_dir(project_slug_dir: Path) -> Path:
-    _tests_dir = project_slug_dir / "tests"
-    assert _tests_dir.exists()
-    return _tests_dir
-
-
 @pytest.fixture(scope="session")
 def validation_dir(project_slug_dir: Path) -> Path:
     validation_dir = project_slug_dir / "validation"
@@ -42,22 +33,13 @@ def validation_dir(project_slug_dir: Path) -> Path:
 
 
 @pytest.fixture(scope="session")
-def tools_dir(project_slug_dir: Path) -> Path:
-    tools_dir = project_slug_dir / "tools"
-    assert tools_dir.exists()
-    return tools_dir
-
-
-@pytest.fixture(scope="session")
-def docker_dir(project_slug_dir: Path) -> Path:
-    docker_dir = project_slug_dir / "docker"
-    assert docker_dir.exists()
-    return docker_dir
-
+def metadata_file(project_slug_dir: Path, request: pytest.FixtureRequest) -> Path:
+    try:
+        metadata_file = Path(request.config.getoption("--metadata"))
+    except TypeError:
+        metadata_file = project_slug_dir / "metadata" / "metadata.yml"
 
-@pytest.fixture(scope="session")
-def metadata_file(project_slug_dir: Path) -> Path:
-    metadata_file = project_slug_dir / "metadata" / "metadata.yml"
+    assert isinstance(metadata_file, Path)
     assert metadata_file.exists()
     return metadata_file
 
diff --git a/packages/service-integration/src/service_integration/service/__init__.py b/packages/service-integration/src/service_integration/service/__init__.py
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/packages/service-integration/src/service_integration/service/pytest_runner.py b/packages/service-integration/src/service_integration/service/pytest_runner.py
new file mode 100644
index 00000000000..9626c4d7be3
--- /dev/null
+++ b/packages/service-integration/src/service_integration/service/pytest_runner.py
@@ -0,0 +1,48 @@
+import logging
+import sys
+import tempfile
+from pathlib import Path
+from typing import Optional
+
+import pytest
+
+CURRENT_DIR = Path(sys.argv[0] if __name__ == "__main__" else __file__).resolve().parent
+TESTS_DIR = CURRENT_DIR / "tests"
+
+logger = logging.getLogger(__name__)
+
+
+def main(
+    service_dir: Path, *, debug: bool = False, extra_args: Optional[list[str]] = None
+) -> int:
+
+    pytest_args = [
+        # global cache options
+        "--cache-clear",
+        f"--override-ini=cache_dir={tempfile.gettempdir()}/.pytest_cache__service_integration",
+        # tests
+        f"{TESTS_DIR}",
+        # custom options
+        f"--service-under-test-dir={service_dir}",
+    ]
+
+    if debug:
+        pytest_args += ["-vv", "--log-level=DEBUG", "--pdb"]
+
+    if extra_args:
+        pytest_args += extra_args
+
+    logger.debug("Running 'pytest %s'", " ".join(pytest_args))
+    exit_code = pytest.main(pytest_args)
+    logger.debug("exit with code=%d", exit_code)
+    return exit_code
+
+
+if __name__ == "__main__":
+    # Entrypoint for stand-alone 'service_integration/service' package
+    sys.exit(
+        main(
+            service_dir=Path(sys.argv[1]),
+            extra_args=sys.argv[2:],
+        )
+    )
diff --git a/packages/service-integration/src/service_integration/service/tests/conftest.py b/packages/service-integration/src/service_integration/service/tests/conftest.py
new file mode 100644
index 00000000000..dfc649a2297
--- /dev/null
+++ b/packages/service-integration/src/service_integration/service/tests/conftest.py
@@ -0,0 +1,25 @@
+# pylint: disable=redefined-outer-name
+# pylint: disable=unused-argument
+# pylint: disable=unused-variable
+# pylint: disable=too-many-arguments
+
+from pathlib import Path
+
+import pytest
+
+
+def pytest_addoption(parser: pytest.Parser):
+    parser.addoption(
+        "--service-under-test-dir", help="Root directory of the service under test"
+    )
+
+
+@pytest.fixture
+def service_under_test_dir(pytestconfig: pytest.Config) -> Path:
+    """Base directory of the service under test (--service-under-test-dir)"""
+    try:
+        dir_path = Path(pytestconfig.getoption("--service-under-test-dir"))
+    except TypeError:
+        pytest.fail("Invalid path --service-under-test-dir")
+    assert dir_path.exists()
+    return dir_path
diff --git a/packages/service-integration/src/service_integration/service/tests/unit/test_service_folders_layout.py b/packages/service-integration/src/service_integration/service/tests/unit/test_service_folders_layout.py
new file mode 100644
index 00000000000..916a852e1f0
--- /dev/null
+++ b/packages/service-integration/src/service_integration/service/tests/unit/test_service_folders_layout.py
@@ -0,0 +1,18 @@
+# pylint: disable=redefined-outer-name
+# pylint: disable=unused-argument
+# pylint: disable=unused-variable
+# pylint: disable=too-many-arguments
+
+from pathlib import Path
+
+
+def test_minimal_folder_layout(service_under_test_dir: Path):
+    assert service_under_test_dir.exists()
+
+    # has osparc folder
+    assert any(service_under_test_dir.glob(".osparc/**/metadata.yml"))
+
+    # has validation folder # TODO: define path in .osparc??
+    assert (service_under_test_dir / "validation").exists()
+    assert (service_under_test_dir / "validation" / "input").exists()
+    assert (service_under_test_dir / "validation" / "output").exists()
diff --git a/services/director/src/simcore_service_director/producer.py b/services/director/src/simcore_service_director/producer.py
index 471041e5b88..a34f06508fc 100644
--- a/services/director/src/simcore_service_director/producer.py
+++ b/services/director/src/simcore_service_director/producer.py
@@ -1120,8 +1120,10 @@ async def stop_service(app: web.Application, node_uuid: str, save_state: bool) -
 
             except ClientError as err:
                 log.warning(
-                    "Could not save state because {service_host_name} is unreachable [{err}]."
-                    "Resuming stop_service."
+                    "Could not save state because %s is unreachable [%s]."
+                    "Resuming stop_service.",
+                    service_host_name,
+                    err
                 )
 
         # remove the services