Europe’s Enterprises Rising to Meet Digital Expectations

Rhea-AI Summary

Europe’s enterprises are embracing digital engineering technologies at a rapid pace, as highlighted in the ISG Provider Lens™ report. The convergence of physical and digital worlds is driving demand for digital engineering services across various industries. Companies are adopting digital tools like industrial IoT, digital twins, and AI to enhance operations. The report also explores the growing trend of product-as-a-service (PaaS) models in European enterprises.

Positive

• European enterprises are leveraging digital engineering technologies to enhance efficiency and innovation, particularly in the automotive industry with the adoption of intelligent and electric vehicles.

• The use of industrial IoT, digital twins, and other technologies is revolutionizing the ecosystem of products, from design to operations, leading to intelligent, connected, and sustainable businesses.

• The implementation of digital twins with predictive AI is enabling accurate simulations of operational scenarios and streamlining workflows in manufacturing and supply chain functions.

Negative

• While digital engineering services offer numerous benefits, the rapid pace of change in the digital landscape may pose challenges for enterprises in terms of adapting to emerging technologies and evolving business processes.

• The increasing reliance on digital tools like digital twins and AI may require significant investments and resources for European enterprises to stay competitive in the market.

Digital twin technologies are streamlining workflows and enabling timely interventions in manufacturing and supply chain functions, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- The rapid rise of digital engineering technologies has led to great expectations among European enterprises for advances across all segments of the value chain, 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 Europe finds digital engineering services are revolutionizing European businesses at a brisk pace. The convergence of the physical world and digital technologies has created an unprecedented demand for such services to help companies become more intelligent, connected and sustainable, the ISG report says.

“The digital landscape is changing very quickly,” said Gaurav Gupta, partner and global head, digital engineering, for ISG. “Providers are enhancing their portfolios by introducing digital interventions across the product lifecycle to stay ahead of the curve.”

Digitization has led to enormous modifications in the complete ecosystem of a product, from R&D and design to manufacturing and operations, the ISG report says. The rising use of industrial IoT, immersive technologies, digital twins, digital threads and other digital tools have significant implications for many European industries, the report says.

Europe’s automotive industry, for one, is growing with the adoption of intelligent and electric vehicles, the ISG report says. Many automakers are leveraging AR/VR technologies to enhance the experience of customer dealers, train new resources and create digital replicas of the shop floor that can pinpoint and predict potential failures, ISG says.

Smart factories powered by Industry 4.0 technologies are prioritizing efficiency and innovation. According to the ISG report, enterprises are now exploring the possibility of enhanced digital twins that incorporate predictive AI to simulate operational scenarios more accurately by replicating present operations and forecasting future outcomes. The ultimate goal of digital thread and digital twin technologies is to streamline workflows and enable timely interventions in manufacturing and supply chain functions, the report says.

“Enterprises in Europe are looking for providers to implement emerging technologies and reassess and streamline business processes and models,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Those providers should have extensive portfolios that span a variety of technologies, not just digital twins, but also analytics, MR/VR and robotics.”

The report also examines how the product-as-a-service (PaaS) model is gaining momentum among enterprises in Europe.

For more insights into the digital engineering challenges facing enterprises in Europe, such as IT/OT convergence and change management, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Digital Engineering Services report for Europe 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, HCLTech, Infosys, TCS and Wipro as Leaders in all four quadrants, while HARMAN and Tech Mahindra as named as Leaders in three quadrants each. Cyient, LTIMindtree, LTTS and Persistent Systems are named as Leaders in two quadrants each, while Akkodis, Bosch SDS, GlobalLogic and NTT DATA are named as Leaders in one quadrant each.

In addition, Akkodis is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Bosch SDS, GlobalLogic, NTT DATA, Randstad Digital and Tech Mahindra 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.

A customized version of the report is available from Cyient.

The 2024 ISG Provider Lens™ Digital Engineering Services 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.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508119782/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

How are European enterprises embracing digital engineering technologies?

European enterprises are rapidly adopting digital engineering technologies to enhance efficiency and innovation across industries.

What technologies are driving demand for digital engineering services in Europe?

Technologies like industrial IoT, digital twins, and AI are driving demand for digital engineering services in Europe.

What is the impact of digital twins with predictive AI on manufacturing and supply chain functions?

Digital twins with predictive AI are streamlining workflows and enabling timely interventions in manufacturing and supply chain functions in Europe.

What is the trend of product-as-a-service (PaaS) models in European enterprises?

The trend of product-as-a-service (PaaS) models is gaining momentum among European enterprises, offering new business models and opportunities.

Who are some of the Leaders in digital engineering services in Europe according to the report?

Accenture, Capgemini, Cognizant, HCLTech, Infosys, TCS, and Wipro are named as Leaders in digital engineering services in Europe across various quadrants.