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GenAI Triggers Digital Engineering Technology Shift in U.S.

$III #AI--The digital engineering services sector in the U.S. changed significantly in 2023 as several major enabling technologies converged, according to a new research report published today by Info...

Business Wire

Enterprises embracing new tools, agile approaches to accelerate development,
meet customer requirements, ISG Provider Lens™ report says

STAMFORD, Conn.: $III #AI--The digital engineering services sector in the U.S. changed significantly in 2023 as several major enabling technologies converged, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Digital Engineering Services report for the U.S. finds that the growing power and importance of generative AI (GenAI) sparked this transformation, with service providers integrating GenAI capabilities into their software platforms and services. This was only the latest development to change the way enterprises think about digital engineering, as they were already evaluating innovations around agile development, composable architecture, microservices, AI deep learning, predictive machine learning and other technologies.

“GenAI has led U.S. enterprises to revisit their technology roadmaps,” said Gaurav Gupta, partner and global leader, Digital Engineering, at ISG. “Companies are eager to adopt new tools that can deliver solid benefits, so the digital engineering technology sector is heading for strong growth.”

While several leading global system integrators have added GenAI capabilities into their portfolios, enterprise adoption of GenAI for digital engineering so far has been cautious and selective, the report says. Integrators are beginning to offer GenAI for automating the creation of design alternatives, optimizing solutions to complex engineering problems and enabling rapid prototyping. GenAI algorithms promise to help engineering teams quickly assess many design possibilities and optimize them based on parameters such as performance, cost, security and sustainability.

Modular, agile business processes and workflows are also reshaping digital engineering practices, allowing companies to rapidly respond to customer demands and bring new products and experiences to market, ISG says. Enterprises are embracing composable design, an approach based on selecting and assembling components in various combinations to fulfill specific user requirements. Many are also adopting microservices architectures to break down monolithic applications into more manageable units for faster development and deployment.

At the same time, companies have been integrating IT and operational technology (OT) and changing how they design, implement and manage their digital infrastructure, the report says. This trend is enhancing efficiency, innovation and competitive differentiation. By embedding IoT, AI and ML into the fabric of business operations, enterprises are creating intelligent networks that can predict maintenance needs, allocate resources and enhance customer experience. Digital twins and process twins, which provide virtual representations of physical assets and systems for analysis and simulation, enable optimized performance.

“Companies have recognized the need to replace legacy engineering systems and modernize how they perform engineering and design,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are helping clients move toward the next generation of solutions.”

The report also explores other trends affecting digital engineering in the U.S., including the use of AI to improve customer experience and the growing importance of designing sustainability into products and processes.

For more insights into the challenges U.S. enterprises face in digital engineering, including choosing among technologies to invest in and measuring the real-world benefits of GenAI, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Digital Engineering Services report for the U.S. evaluates the capabilities of 41 providers across four quadrants: Design and Development (Products, Services and Experiences), Integrated Customer/User Engagement, Platform and Application Services and Intelligent Operations.

The report names Accenture, Capgemini, Cognizant, GlobalLogic, HARMAN, HCLTech, Infosys, LTIMindtree, LTTS, TCS and Wipro as Leaders in all four quadrants. It names Cyient, Hexaware and Persistent Systems as Leaders in three quadrants each and Tech Mahindra as a Leader in two quadrants.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Akkodis, Apexon, Ascendion, NTT DATA and Persistent Systems are named as Rising Stars in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among digital engineering services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Cyient, GlobalLogic, HARMAN, Hexaware, and LTTS.

The 2024 ISG Provider Lens™ Digital Engineering Services report for the U.S. 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.

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 AI and 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.

Fonte: Business Wire

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