Digital Engineering Growth Fuels Rush for Talent in Europe
Information Services Group (NASDAQ: III) released the 2022 ISG Provider Lens™ Digital Engineering Services report, highlighting a significant shift in Europe’s engineering services market. The demand for digital transformation has surged, prompting providers to recruit more developers. Although adoption has lagged, sectors like automotive and aerospace are now integrating digital solutions, driven by labor costs and regulations. The report recognizes industry leaders including Accenture and Wipro, while noting emerging partnerships aimed at bridging skill gaps and enhancing customer experiences.
- Growing demand for digital engineering services in Europe due to digital transformation.
- Collaborations between European and international providers to meet developer demand.
- Recognition of top companies like Accenture and Wipro as leaders in multiple service areas.
- Slow adoption of digital engineering in Europe compared to other regions.
- Midsize companies favoring in-house development may hinder market growth.
- Industries relying on close-knit supplier networks limit opportunities for larger service providers.
As enterprises embrace digital transformation, engineering service providers need more developers, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ Digital Engineering Services report for
“For many European companies involved in engineering, software is becoming a much more important part of their product and customer development strategy,” said
Several factors have slowed Europe’s adoption of digital engineering technologies and services, the report says. Midsize companies dominate most industries in the region and tend to favor in-house development. Some industries, including automotive and aerospace, turn to their close-knit supplier networks rather than to large service providers for engineering. And most European companies develop products so specialized that the internal mechanical, electronics and software teams need to work closely together, making extensive sourcing of engineering skills more difficult and complex.
However, many industrial companies in the region are now motivated to undertake digital transformation, ISG says. Discrete industries are adopting automation because of high labor costs and increasing regulation, while also using new technologies to meet growing demand for highly customized products.
In Europe’s process industries, massive enterprises with huge plants are implementing digital solutions to monitor, control and visualize all processes so their facilities can run for long periods of time without interruption. They are also adopting technologies to secure their assets from cyberattacks. Sustainability is part of most conversations, and enterprises are working quickly to align their digital engineering strategies with their sustainability commitments.
As more customers demand digital services and direct access to manufacturers, companies in
The 2022 ISG Provider Lens™ Digital Engineering Services report for
The report names Accenture, Cognizant, HCL and Wipro as Leaders in all five quadrants. It names Capgemini, Infosys and TCS as Leaders in four quadrants each. The report names LTTS as a Leader in three quadrants and HARMAN Digital Transformation Services (DTS) as a Leader in two quadrants. AVL,
In addition, Mphasis is named as a
A customized version of the report is available from HARMAN Digital Transformation Services (DTS).
The 2022 ISG Provider Lens™ Digital Engineering Services report for
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
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
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FAQ
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