Engineering Services Focused on Software to Support Automotive, Aerospace and Oil Production OEMs

Wednesday, 29. January 2020 17:00

STAMFORD, Conn., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Traditional IT service providers are expanding their capabilities in engineering research and development services in response to increasing demand from original equipment manufacturers (OEMs) in the automotive, aerospace and oil and gas sectors, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

 

The 2019-2020 ISG Provider LensEngineering – Service Partners Global Report finds the worldwide engineering ecosystem increasingly inclined toward software development to enable faster product rollouts and innovation. As demand for Internet of Things platforms and applications grows, it is transforming vehicle and site diagnostics, mobility services, predictive maintenance, operational technology, data analytics and the digital supply chain.

 

“Engineering and R&D services are one of the fastest growing segments in the outsourcing market,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Heritage IT services providers are strengthening their product and manufacturing engineering wings to offer end-to-end product development services and after-sale maintenance.”

 

Overall, the engineering services market is moving toward managed services and outcome-based pricing for service contracts to support both embedded and mechanical processes, the report finds. Collaboration between OEMs and supply companies is aimed at increasing innovation.

 

The report notes automotive and aerospace OEMs are focused on developing digital twins for the manufacturing plant. They are also focused on additive manufacturing, augmented reality and virtual reality to gain a competitive advantage. Network virtualization, software-defined networking and 5G technologies are also becoming critical for OEMs to develop connected vehicles.

 

In the automotive product engineering field, technology suppliers are enhancing their capabilities to deliver end-to-end services to support OEM needs like SDN and 5G, with automotive companies increasing their R&D budgets on V2X to drive the future of connected mobility, the report says.

 

In the automotive manufacturing engineering segment, vehicle OEMs are focused on converging their IT and operational technology departments and embracing 3D printing technology to prototype products, the report adds. OEMs are also leveraging product lifecycle management services to enable predictive manufacturing and to reduce costs.

 

The report finds an ultra-competitive market for OEMs in the aerospace product engineering field and recommends they create a value proposition through continuous improvement or process excellence. OEMs should also focus on ways to reduce waste and cut costs, the report suggests.

 

The report also examines the digital oil field market and finds the industry embracing IoT as the cost of sensors, bandwidth and data processing has fallen. The major focus areas for R&D are using cloud-based storage, effective data transmission and high-speed computing to improve financial viability and operational efficiency.

 

The 2019-2020 ISG Provider LensEngineering – Service Partners Global Report evaluates the capabilities of 45 providers across five quadrants: Automotive – Product (Design, Development and Pilot) Engineering, Automotive – Manufacturing Engineering, Aerospace – Product Engineering, Aerospace – Manufacturing Engineering, and Oil and Gas – Digital Oil Field (Upstream and Midstream).

 

The report names Altran, Capgemini, L&T Technology Services (LTTS) and TCS as leaders in all five quadrants and HCL and Infosys as leaders in four. Wipro is named a leader in three quadrants, and Cognizant, Cyient and QuEST Global are named leaders in two. AKKA Technologies, Alten, Bertrandt and Tech Mahindra are leaders in one quadrant.

 

A customized version of the report is available from L&T Technology Services.

 

The 2019-2020 ISG Provider LensEngineering – Service Partners Global Report is available to ISG Insights™ 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 and Latin America, as well as in the U.S., Germany, the U.K., the Nordics and Brazil, 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.

 

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 more than 70 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; 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 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.

# # #

Will Thoretz
Information Services Group, Inc. 
+1 203 517 3119
Will.Thoretz@isg-one.com

Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com
Related Links: 
Author:
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.