STAMFORD, Conn., Nov. 16, 2018 /PRNewswire/ -- The rapid growth of
smart products and smart factories is transforming the engineering
services industry as never before, and providers are responding by
digitalizing virtually every facet of their services portfolio, a
new study from Information Services Group (ISG) (Nasdaq: III), a
leading global technology research and advisory firm, finds.
The latest ISG Provider Lens™ Quadrant report, the first ever by
ISG to evaluate engineering services providers serving the U.S.
market, notes providers are moving to address the digital elements
of core engineering functions – from concept and physical product
development, to optimization of industrial design and operations,
to software product and applications software development.
"Transforming from a traditional to an agile business
environment is key," said Esteban
Herrera, partner and global head of ISG Research. "Rapid
technology changes in both products and processes, combined with
newer business models that focus on design thinking and putting the
customer first, are forcing enterprises and their engineering
services providers to pursue greater agility in designing,
manufacturing and servicing their products. Mergers, acquisitions
and partnerships along the value chain are becoming necessary for
providers that want to offer end-to-end solutions to their
customers."
The ISG report says the product development discipline is being
rewritten by technological innovation, notably as more sensors and
computing capability are being infused in modern products.
Manufacturing and plant process engineering services, likewise, are
becoming more connected and intelligent as factories are optimized
through the application of Internet of Things (IoT) within Industry
4.0 environments.
The engineering ecosystem, overall, is increasingly inclined
toward software development and services, the report noted. IoT
software applications for connectivity, mobility, predictive
maintenance, operational technology (OT), data analytics and
digital supply chain are transforming software requirements. IT-OT
integration is becoming increasingly important as enterprises seek
to enhance business and technology synergies.
Business and revenue models also are being transformed by the
new realities of the engineering services market. Traditional time
and materials (T&M) and fixed-priced/project-based models are
giving way to managed services, risk-reward and outcome-based
models.
The ISG report includes detailed analysis of engineering
services in industries significantly impacted by digitalization:
automotive; chemical, oil and gas; life sciences and consumer
packaged goods.
The automotive sector is being transformed by the movement
toward autonomous vehicles and the growing connected car ecosystem.
Amid that increased connectivity, security is becoming a greater
concern. Providers are seeking ways to optimize the entire
industry, from product to process to marketing strategy to consumer
engagement. Engineering services are focused on reducing time to
market, lowering CO2 emissions, increasing safety and lowering
insurance costs.
In the chemical, oil and gas sector, engineering services are
focused on optimizing efficiency and lowering costs, especially in
the face of shifting energy demands and fluctuating oil prices.
That includes reducing waste, retro-fitting equipment to better
monitor performance and improve outcomes and addressing
environmental and safety hazards. The use of IoT and advanced
analytics are especially important in this industry.
In life sciences, engineering services providers are challenged
by changing cost and reimbursement models, regulatory compliance,
and the growing need for secure and better-connected ecosystems for
caregivers and patients. In the consumer packaged goods (CPG)
sector, engineering services are helping manufacturers and
retailers improve supply chain efficiencies, meet local market
demands, and deliver enhanced product innovation and safety.
The ISG Provider Lens Engineering Services Quadrant Report
evaluates 15 providers serving the U.S. market across seven
quadrants, three geared to the Automotive Sector: Product
Engineering; Manufacturing and Plant/Process Engineering; and
Software/Digital and Platform Engineering; and two – Manufacturing
and Plant/Process Engineering and Software/Digital and Platform
Engineering – geared to each of the Chemical, Oil and Gas and the
combined Life Sciences and CPG Sectors.
Only one engineering services provider, TCS, was named a leader
across all seven quadrants. Infosys and L&T Technology
Services were named a leader in six of the seven quadrants and a
rising star in the other. A custom version of the report is
available from L&T Technology Services.
The ISG Provider Lens Engineering Services Quadrant Report is
available to ISG Insights™ subscribers or for immediate, one-time
purchase on this webpage.
About ISG Provider Lens™ Quadrant 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 serving the U.S., Germany, Australia, Brazil and the UK, 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. An ISG Provider Lens
Archetype report on Next-Gen ADM services will be published next
month.
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 75 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;
technology 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 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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SOURCE Information Services Group, Inc.