Digital engineering takes U.S. industries by storm as companies gear up to design, develop and produce smarter products and services, ISG Provider Lens report says
Enterprises are modernizing their engineering practices at an unprecedented pace in the U.S., the world’s leading market for adoption of new digital engineering technologies, according to a research report published by Information Services Group, a leading global technology research and advisory firm.
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“Shoe manufacturers that used to focus solely on size, materials and colors now have to consider services, too”
The 2022 ISG Provider Lens Digital Engineering Services report for the U.S. finds many enterprises in the U.S. have embraced digital engineering as their industries are transformed by the digital revolution. What were once objects built to perform a task, such as automobiles, semiconductors and athletic shoes, are becoming connected systems defined by software and data.
“Growing demand for smarter products and processes is making engineering far more complex than in the past,” said Gaurav Gupta, partner and global head, digital engineering, at ISG. “Companies are adopting new technologies, often with the help of ecosystems of technology and service providers, and digital engineering services are making these massive transitions possible.”
Automotive is a prime example of an industry where engineering is changing quickly, the report says. Much of the value of a new, high-end vehicle is in software for safety and automation and in data the car collects about driving behavior and its surroundings. Mobility is just one function of an intelligent platform on wheels.
Perfecting a vehicle’s digital features involves so many variables that engineers may need assistance from artificial intelligence, ISG says. Similar challenges are emerging with other types of products, such as connected shoes that sense how the wearer is running and send real-time data to a smart watch.
“Shoe manufacturers that used to focus solely on size, materials and colors now have to consider services, too,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Many products are being engineered for a whole new set of parameters.”
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The report explores how digital engineering introduces new approaches to designing, developing, testing and producing products and customer experiences. These approaches require new skills in addition to investments, ISG says. By partnering with service providers, enterprises can tap into a scalable supply of digital engineering talent, which is often scarce and not available in-house.
The report also explores how digital engineering affects discrete and process industries differently.
The 2022 ISG Provider Lens™ Digital Engineering Services report for the U.S. evaluates the capabilities of 30 providers across five quadrants: Design and Development (Products Services, Experience), Connected and Intelligent Operations — Discrete Industries, Connected and Intelligent Operations — Process Industries, Integrated Customer/User Engagement and Experience, and Platforms and Application Services.
The report names Accenture, Capgemini, HCL, Infosys, LTTS and Wipro as Leaders in all five quadrants. It names Cognizant and TCS as Leaders in four quadrants each and GlobalLogic and Tech Mahindra as Leaders in two quadrants each. Hexaware and Mphasis are named as Leaders in one quadrant each.
In addition, Zensar is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants. GlobalLogic and Mphasis are named as Rising Stars in two quadrants each, and HARMAN Digital Transformation Solutions (DTS) is named as a Rising Star in one quadrant.
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