Smart technologies such as AI and digital twins will play a key role in fundamentally changing the face of the European manufacturing sector, ISG Provider Lens™ report says

European companies are revamping their manufacturing processes by adopting automation and AI capabilities that make factories smarter and more sustainable, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe finds manufacturers in Europe are exploring emerging technologies that enable smart products and solutions delivered by smart factories with Industry 4.0 connectivity. As the focus on sustainability and responsible sourcing gains prominence, manufacturing companies and service providers are working together in areas such as reverse logistics, digital tools and data analytics to manage manufacturers’ long-term sustainability goals throughout their supply chains, the ISG report says.

“Service providers are helping clients in various areas of product innovation and lifecycles,” said Philipp Glatz, ISG partner and Smart Manufacturing lead for EMEA. “Some providers are also working on solutions that use digital twins to optimize supply chains and make factories more sustainable.”

There is an increasing emphasis on implementing supply chain sustainability strategies due to pressure from government agencies around the world, the ISG report says. Manufacturers and their suppliers are looking to diversify their supply chains to mitigate vulnerabilities in reliability and resiliency that were exposed by the COVID-19 pandemic, ISG says.

Digital twins are considered a key technology for facilitating the adoption of the factory-of-the-future concept because they help manufacturers to streamline processes and detect possible damage and errors faster, the ISG report says. European manufacturers can use the simulations that digital twins provide to translate their strategies from the boardroom to the shop floor, the report says. As the use of digital twins and AI increases, updating and strengthening operational technology (OT) security will steadily grow in importance, ISG says. According to the report, manufacturers will need to find the right providers to help them deploy OT-cybersecurity-compliant systems and data.

“The factory of the future is already here,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The use of AI, IoT, digital twins and the convergence of IT and OT are poised to fundamentally redefine factory operations.”

The report also examines how enterprises are turning to service providers to help them develop new aftermarket business models and revenue streams.

The 2023 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe evaluates the capabilities of 31 providers across four quadrants: Agile Product Development and Design Services, Digital Factory/Manufacturing Solutions, Manufacturing Supply Chain and Procurement Services and Aftermarket Services.

The report names Accenture, Capgemini, HCLTech, IBM Consulting, Infosys, TCS and Wipro as Leaders in all four quadrants, while Cognizant is named as a Leader in three quadrants. Eviden, Harman DTS and LTTS are named as Leaders in two quadrants each, while Akkodis, NTT Data and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Hitachi Vantara is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Akkodis and Cognizant are named as Rising Stars in one quadrant each.

The 2023 ISG Provider Lens™ Manufacturing Industry Services and Solutions report for Europe 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.

A companion research series, the ISG Provider Lens Archetype reports, 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 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 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.

Press Contacts: Philipp Jaensch, ISG +49 151 730 365 76 philipp.jaensch@isg-one.com Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com

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