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Classified in: Science and technology
Subject: SVY

Smart Products and Factories Transforming Engineering Services Industry


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 Lenstm 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 Insightstm subscribers or for immediate, one-time purchase on this webpage.

About ISG Provider Lenstm Quadrant Research
The ISG Provider Lenstm 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.

SOURCE Information Services Group, Inc.


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