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ISG To Publish Study On Digital Engineering Services Providers

ISG Provider Lens report will look at ways digital engineering providers are embracing new technologies to better serve clients

Information Services Group (ISG) a leading global technology research and advisory firm, has launched a new research study examining the rapidly evolving digital engineering services market, as providers embrace technologies like artificial intelligence and 5G to transform the entire process by which products are created and delivered

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The study results will be published in a comprehensive ISG Provider Lens™ report, called Digital Engineering Services, scheduled to be released in April. The report will cover a range of digital engineering services, including design and development services and customer engagement services as digital engineering providers find innovative ways to respond to new market demands.

The new report will examine how digital engineering providers are using AI, machine learning, predictive analytics, the IoT, 5G and other technologies to support their enterprise customers, said Gaurav Gupta, partner and global leader of ISG Digital Engineering Services.

“Engineering services have undergone significant transformation in recent years, with paradigm shifts observed in manufacturing and product development across industries—and accelerated by the new imperatives placed on companies by the pandemic,” Gupta said. “Foundational engineering services such as product innovation, ideation, strategy and design, R&D and testing services, operations, product life cycle management and aftermarket services have become digitized, and providers have responded.”

Enterprise buyers will be able to use information from the report to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

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ISG has distributed surveys to more than 270 digital engineering technology and service providers. Working in collaboration with ISG’s global advisors, the research team will produce five quadrants representing the services and products the typical enterprise client is buying in the digital engineering space, based on ISG’s experience working with its clients. The five quadrants are:

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  • Design and Development (Products, Services and Experiences), assessing a provider’s ability to provide integrated hardware and software, new data-driven product development and feature augmentation, from ideation to strategy to design and R&D, by leveraging capabilities across rapid and agile design, prototyping and autonomous testing. The key enabling capabilities include design thinking and digital product design techniques.
  • Connected and Intelligent Operations – Discrete Industries, considering service providers that offer intelligent operations to clients in discrete industries with legacy factories, production plants and industrial operations. They offer smart and new digital technologies and methods and help set up intelligent greenfield plants and operations.
  • Connected and Intelligent Operations – Process Industries, looking at service providers that offer intelligent operations to process industries. They help make legacy plants, industrial operations and more complex systems smarter by using new digital technologies.
  • Integrated Customer/User Engagement, covering intelligent aftermarket services for delivering customer services and product support through digital platforms. The key capabilities for providers in this space include the ability to provision AI-enabled customer services, virtual agents, self-service knowledge support, remote services and field support using augmented and virtual reality technology, remote services using drones and real-time experience management.
  • Platforms and Applications Services, assessing a service provider’s ability to design and deliver digital platform engineering competencies. The key capabilities include proficiencies in business and technical design, building new experiences, and the ability to leverage digital ecosystems, orchestration platforms and use microservice-based architectures. This analysis also covers containerization, connected intelligence and experience management across products, services and user experience in real time.

The report will cover the global digital engineering market and examine products and services available in the U.S. and Europe. ISG analysts Tapati Bandopadhyay, Ralf Steck and Aswin Gaidhani serve as authors of the report.


A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as digital engineering providers can contact ISG and ask to be included in the study.

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