Engineering Services Focused on Software to Support Automotive, Aerospace and Oil Production OEMs
January 29 2020 - 11:00AM
Traditional IT service providers are expanding their capabilities
in engineering research and development services in response to
increasing demand from original equipment manufacturers (OEMs) in
the automotive, aerospace and oil and gas sectors, according to a
new report published today by Information Services Group (ISG)
(Nasdaq: III), a leading global technology research and advisory
firm.
The 2019-2020 ISG Provider Lens™ Engineering – Service
Partners Global Report finds the worldwide engineering ecosystem
increasingly inclined toward software development to enable faster
product rollouts and innovation. As demand for Internet of Things
platforms and applications grows, it is transforming vehicle and
site diagnostics, mobility services, predictive maintenance,
operational technology, data analytics and the digital supply
chain.
“Engineering and R&D services are one of the fastest growing
segments in the outsourcing market,” said Jan Erik Aase, director
and global leader, ISG Provider Lens Research. “Heritage IT
services providers are strengthening their product and
manufacturing engineering wings to offer end-to-end product
development services and after-sale maintenance.”
Overall, the engineering services market is moving toward
managed services and outcome-based pricing for service contracts to
support both embedded and mechanical processes, the report finds.
Collaboration between OEMs and supply companies is aimed at
increasing innovation.
The report notes automotive and aerospace OEMs are focused on
developing digital twins for the manufacturing plant. They are also
focused on additive manufacturing, augmented reality and virtual
reality to gain a competitive advantage. Network virtualization,
software-defined networking and 5G technologies are also becoming
critical for OEMs to develop connected vehicles.
In the automotive product engineering field, technology
suppliers are enhancing their capabilities to deliver end-to-end
services to support OEM needs like SDN and 5G, with automotive
companies increasing their R&D budgets on V2X to drive the
future of connected mobility, the report says.
In the automotive manufacturing engineering segment, vehicle
OEMs are focused on converging their IT and operational technology
departments and embracing 3D printing technology to prototype
products, the report adds. OEMs are also leveraging product
lifecycle management services to enable predictive manufacturing
and to reduce costs.
The report finds an ultra-competitive market for OEMs in the
aerospace product engineering field and recommends they create a
value proposition through continuous improvement or process
excellence. OEMs should also focus on ways to reduce waste and cut
costs, the report suggests.
The report also examines the digital oil field market and finds
the industry embracing IoT as the cost of sensors, bandwidth and
data processing has fallen. The major focus areas for R&D are
using cloud-based storage, effective data transmission and
high-speed computing to improve financial viability and operational
efficiency.
The 2019-2020 ISG Provider Lens™ Engineering – Service
Partners Global Report evaluates the capabilities of 45 providers
across five quadrants: Automotive – Product (Design, Development
and Pilot) Engineering, Automotive – Manufacturing Engineering,
Aerospace – Product Engineering, Aerospace – Manufacturing
Engineering, and Oil and Gas – Digital Oil Field (Upstream and
Midstream).
The report names Altran, Capgemini, L&T Technology Services
(LTTS) and TCS as leaders in all five quadrants and HCL and Infosys
as leaders in four. Wipro is named a leader in three quadrants, and
Cognizant, Cyient and QuEST Global are named leaders in two. AKKA
Technologies, Alten, Bertrandt and Tech Mahindra are leaders in one
quadrant.
A customized version of the report is available from L&T
Technology Services.
The 2019-2020 ISG Provider Lens™ Engineering – Service
Partners Global Report is available to ISG Insights™ 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 and Latin America, as well as in the
U.S., Germany, the U.K., the Nordics and Brazil, with
additional markets to be added in the future. For more information
about ISG Provider Lens research, please visit
this webpage.
The series is a complement to the ISG Provider Lens Archetype
reports, which offer a first-of-its-kind evaluation of providers
from the perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 clients, including more than 70 of the top
100 enterprises in the world, 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 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 1,300
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.
# # #
Will Thoretz
Information Services Group, Inc.
+1 203 517 3119
Will.Thoretz@isg-one.com
Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com
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