Enterprises embracing new tools, agile
approaches to accelerate development, meet customer
requirements, ISG Provider Lens™ report says
The digital engineering services sector in the U.S. changed
significantly in 2023 as several major enabling technologies
converged, according to a new research report published today by
Information Services Group (ISG) (Nasdaq: III), a leading global
technology research and advisory firm.
The 2024 ISG Provider Lens™ Digital Engineering Services report
for the U.S. finds that the growing power and importance of
generative AI (GenAI) sparked this transformation, with service
providers integrating GenAI capabilities into their software
platforms and services. This was only the latest development to
change the way enterprises think about digital engineering, as they
were already evaluating innovations around agile development,
composable architecture, microservices, AI deep learning,
predictive machine learning and other technologies.
“GenAI has led U.S. enterprises to revisit their technology
roadmaps,” said Gaurav Gupta, partner and global leader, Digital
Engineering, at ISG. “Companies are eager to adopt new tools that
can deliver solid benefits, so the digital engineering technology
sector is heading for strong growth.”
While several leading global system integrators have added GenAI
capabilities into their portfolios, enterprise adoption of GenAI
for digital engineering so far has been cautious and selective, the
report says. Integrators are beginning to offer GenAI for
automating the creation of design alternatives, optimizing
solutions to complex engineering problems and enabling rapid
prototyping. GenAI algorithms promise to help engineering teams
quickly assess many design possibilities and optimize them based on
parameters such as performance, cost, security and
sustainability.
Modular, agile business processes and workflows are also
reshaping digital engineering practices, allowing companies to
rapidly respond to customer demands and bring new products and
experiences to market, ISG says. Enterprises are embracing
composable design, an approach based on selecting and assembling
components in various combinations to fulfill specific user
requirements. Many are also adopting microservices architectures to
break down monolithic applications into more manageable units for
faster development and deployment.
At the same time, companies have been integrating IT and
operational technology (OT) and changing how they design, implement
and manage their digital infrastructure, the report says. This
trend is enhancing efficiency, innovation and competitive
differentiation. By embedding IoT, AI and ML into the fabric of
business operations, enterprises are creating intelligent networks
that can predict maintenance needs, allocate resources and enhance
customer experience. Digital twins and process twins, which provide
virtual representations of physical assets and systems for analysis
and simulation, enable optimized performance.
“Companies have recognized the need to replace legacy
engineering systems and modernize how they perform engineering and
design,” said Jan Erik Aase, partner and global leader, ISG
Provider Lens Research. “Service providers are helping clients move
toward the next generation of solutions.”
The report also explores other trends affecting digital
engineering in the U.S., including the use of AI to improve
customer experience and the growing importance of designing
sustainability into products and processes.
For more insights into the challenges U.S. enterprises face in
digital engineering, including choosing among technologies to
invest in and measuring the real-world benefits of GenAI, see the
ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Digital Engineering Services report
for the U.S. evaluates the capabilities of 41 providers across four
quadrants: Design and Development (Products, Services and
Experiences), Integrated Customer/User Engagement, Platform and
Application Services and Intelligent Operations.
The report names Accenture, Capgemini, Cognizant, GlobalLogic,
HARMAN, HCLTech, Infosys, LTIMindtree, LTTS, TCS and Wipro as
Leaders in all four quadrants. It names Cyient, Hexaware and
Persistent Systems as Leaders in three quadrants each and Tech
Mahindra as a Leader in two quadrants.
In addition, Tech Mahindra is named as a Rising Star — a company
with a “promising portfolio” and “high future potential” by ISG’s
definition — in two quadrants. Akkodis, Apexon, Ascendion, NTT DATA
and Persistent Systems are named as Rising Stars in one quadrant
each.
In the area of customer experience, Persistent Systems is named
the global ISG CX Star Performer for 2024 among digital engineering
services providers. Persistent Systems earned the highest customer
satisfaction scores in ISG's Voice of the Customer survey, part of
the ISG Star of Excellence™ program, the premier quality
recognition for the technology and business services industry.
Customized versions of the report are available from Cyient,
GlobalLogic, HARMAN, Hexaware, and LTTS.
The 2024 ISG Provider Lens™ Digital Engineering Services report
for the U.S. is available to subscribers or for one-time purchase
on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Canada, Brazil,
the U.K., France, Benelux, Germany, Switzerland, the Nordics,
Australia and Singapore/Malaysia, with additional markets to be
added in the future. For more information about ISG Provider Lens
research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 900 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including AI and automation, cloud and data analytics; sourcing
advisory; managed governance and risk services; network carrier
services; strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240507701729/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Julianna Sheridan, Matter Communications
for ISG +1 978-518-4520 isg@matternow.com
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