Growth in digital engineering is fueling a race for talent in Europe

According to a new research report released today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and consultancy firm, software is playing an increasingly important role in the reorganization of digital engineering within European companies, causing major changes in the services market in computer engineering as vendors scramble to recruit more developers.

The 2022 edition of the ISG Provider Lens™ report on digital engineering services in Europe reveals that digital transformation came later in Europe than in other regions, but is now growing at a rapidly changing pace outlook for the computer engineering services market. Suppliers from outside Europe are increasingly present, while traditional European engineering service providers are trying to establish themselves in the digital technology market.

“Software is an integral part of the product and customer development strategy of many European companies involved in digital engineering,” says Gaurav Gupta, Partner and Global Head of Digital Engineering at ISG. “In Europe, IT engineering service companies are working with international vendors to recruit enough developers to meet growing demand. »

According to the report, several factors have slowed Europe’s adoption of digital engineering technologies and services. Medium-sized companies, predominant in most industries in the region, tend to favor in-house development. Some industries, including automotive and aerospace, are turning to their dense supplier networks rather than large IT engineering service providers. Finally, most European companies develop highly specialized products requiring close collaboration between in-house mechanical, electronic and software development teams, which increases the difficulty and complexity of recruiting engineering experts.

However, many industrial companies in the region are now interested and willing to undertake digital transformation, says ISG. Discrete manufacturing industries are embracing automation due to high labor costs and increasing regulation, while harnessing new technologies to meet growing demand for highly customized products.

In the European process industries sector, large companies with huge factories are implementing digital solutions to monitor, control and visualize all processes so that their facilities can operate for long periods of time without interruption. These companies are also adopting technologies to secure their systems against cyberattacks. Sustainability is a big part of most conversations, and companies are busy aligning their digital engineering strategies with their sustainability commitments.

As growing numbers of customers demand digital services and direct access to manufacturers, companies in Europe and other regions are focusing on the digital customer experience, the report says. An ecosystem of partners is about to emerge to overcome the lack of internal expertise faced by many companies, thus offering a major opportunity for service providers.

The 2022 edition of the ISG Provider Lens™ Report on Digital Engineering Services in Europe assesses the capabilities of 41 providers in five quadrants: Design & Development, Connected & Intelligent Operations — Discrete Manufacturing Industries, Connected & Intelligent Operations — Industries processes, Integrated customer/user engagement and experience, and Platforms and application services.

The report names Accenture, Cognizant, HCL and Wipro as leaders in all five quadrants and Capgemini, Infosys and TCS as leaders in four quadrants each. LTTS was named a leader in three quadrants while HARMAN Digital Transformation Services (DTS) is a leader in two quadrants. AVL, Ferchau, FEV, IAV, Tech Mahindra and Zensar are named leaders in one quadrant each.

Additionally, Mphasis was named a “Rising Star” company in three quadrants with “promising portfolios” and “high future potential” as defined by ISG. Cyient, GlobalLogic and Tech Mahindra were also named Rising Stars in one quadrant each.

A customized version of the report is available from the website of HARMAN Digital Transformation Services (DTS).

The 2022 edition of the ISG Provider Lens™ report on digital engineering services in Europe is available for subscribers or for a one-time purchase on this Web page.

About ISG Provider Lens™ reports

The ISG Provider Lens™ Quadrant study series is the only service provider assessment to combine empirical, data-driven market analysis and research with real-world experience and insights by the ISG consulting team. ISG. Companies will find a wealth of detailed data and market analysis to help guide their selection of suitable outsourcing partners, while ISG advisors use the reports to validate their own market insights and make recommendations to companies. ISG clients. The study currently covers providers who offer their services globally, in Europe as well as in the United States, Canada, Brazil, United Kingdom, France, Benelux, Germany, Switzerland , Nordics, Australia and Singapore/Malaysia, with more markets to be added in the future. For more information on ISG Provider Lens research, please see this Web page.

A series of complementary studies, the ISG Provider Lens Archetype reports, offer a unique assessment of providers from the point of view of different types of well-defined buyers.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. More than 800 companies trust ISG, including more than 75 of the world’s 100 largest companies. ISG advises businesses, public sector organizations, and service and technology providers to achieve operational excellence and benefit from faster growth. The firm specializes in digital transformation services, including cloud, data and empowerment analytics; sourcing advice; risk management and governance services; network operator services; the design of strategies and operations; change management; market knowledge, as well as technology research and analysis. Founded in 2006 and based in Stamford, Connecticut, ISG employs more than 1,300 digitally-ready professionals operating in more than 20 countries; a global team known for its innovative thinking, market influence, deep technology and industry expertise, and world-class research and analytics capabilities based on data from the most complete industry. For further information, please visit the website www.isg-one.com.

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