ISG to Evaluate Digital Engineering Services Being Transformed by AI

Upcoming ISG Provider Lens™ report will evaluate providers of prototyping, simulation, and large-scale design testing services

Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, has launched a research study examining digital engineering services providers that are leveraging AI to help customers improve all aspects of their digital enterprise.

The study results will be published in two comprehensive ISG Provider Lens™ reports, called Digital Engineering Services 2025, scheduled for release in April 2025. The geographically focused reports will cover providers supporting AI-driven design and development, integrated customer and user engagement, platform and application services and intelligent operations, with a special focus on the transformative impact of generative AI (GenAI) on engineering and business operations.

Enterprise buyers will be able to use information from the reports to evaluate their current vendor relationships, potential new engagements and available offerings, while ISG advisors use the information to recommend providers to the firm’s buy-side clients.

GenAI is transforming the value of digital engineering, from ideation and virtual prototyping to simulations and large-scale testing. Large language models (LLM) used in training GenAI are streamlining common engineering processes, including document generation, technical search and retrieval, and visual language models (VLM) are generating detailed specifications from 3D models.

“Systems endowed with modern AI can predict failures, optimize workflows and enable efficient remote operations,” said Namratha Dharshan, chief business leader, ISG Research. “They can add value to engineering processes with aftermarket services, including intelligent chatbots, real-time support and predictive system maintenance.”

ISG has distributed surveys to more than 80 digital engineering service providers serving the Europe and the U.S. markets. Working in collaboration with ISG’s global advisors, the research team will produce four quadrants representing the digital engineering services the typical enterprise is buying based on ISG’s experience working with its clients. The four quadrants are:

• Design and Development (Products, Services and Experiences) evaluating providers of services for integrated hardware/software development and feature augmentation, including new data-driven methods and agile design, that yield faster innovation cycles, accelerated time-to-market and improved customer experiences.
• Integrated Customer/User Engagement assessing providers of intelligent aftermarket services for product support through digital platforms. Critical capabilities in this segment include providing AI-enabled customer service, remote field support with AR/VR technologies and self-service knowledge support.
• Intelligent Operations evaluating providers enabling intelligent operations across industries, particularly within legacy factories and production plants, helping to make operations at greenfield and brownfield sites more connected and autonomous, thereby reducing dependence on manual intervention and increasing efficiency.
• Platforms and Application Services covering providers’ ability to design and deliver digital platform engineering competencies. Key capabilities include business and technical design proficiency, building new experiences, and leveraging digital ecosystems, orchestration platforms and microservices-based architectures.

Geographically focused reports from the study will cover the global digital engineering services market and examine products and services available in the U.S. and Europe. ISG analysts Srinivasan P N (Europe) and Dr. Tapati Bandopadhyay (U.S.) will serve as lead authors of the reports.

A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as digital engineering services providers wishing to be included in the study may contact ISG.

All 2025 ISG Provider Lens™ evaluations feature expanded customer experience (CX) data that measures actual enterprise experience with specific provider services and solutions, based on ISG’s continuous CX research. Enterprise customers wishing to share their experience about a specific provider or vendor are encouraged to register here to receive a personalized survey URL. Participants will receive a copy of this report in return for their feedback.

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, Mexico, 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, 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 1,600 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.

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