Disruptions caused by the COVID-19 crisis have stretched the abilities of British manufacturers to keep their operations running, causing smaller companies to struggle and leading to a wave of consolidations, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2020 ISG Provider Lenstm Manufacturing Industry Services report for the U.K. finds the demands of the pandemic, such as remote work requirements, have forced manufacturers to ensure they have robust infrastructures for business continuity. Many smaller companies lack these systems, and the COVID-19 economic slump has weakened enterprises’ ability to make new investments.
Against this backdrop, system integrators are helping some enterprises move away from legacy platforms, while engineering services providers are building integrated technology stacks that transform processes in ways that can improve business results, according to ISG.
“The digital transformation of manufacturing is becoming more essential as U.K. companies look for ways to weather the global downturn,” said Christian Decker, ISG partner and smart manufacturing lead for EMEA. “While improving business continuity can help them survive this crisis, they are becoming stronger businesses for the future by focusing on the entire product lifecycle.”
Enterprises are turning to engineering providers for the capability to quickly detect and fix production faults and outages, which is critical under any conditions, the report says. Manufacturers are also seeking help in analyzing and reducing costs, with many concerned whether they can afford to continue in their current mode of operations for six months or a year to come.
U.K. manufacturers also have ramped up efforts to virtualize production and move it closer to customers, a trend already in motion due to Brexit, the report says. Supply-chain disruptions caused by the pandemic have given companies a new reason to create smart local factories.
The outsourcing industry in the U.K. is mature and growing, with service providers establishing more integrated engagements with manufacturers in areas including infrastructure, business process management and modernization of legacy systems. Manufacturers are also increasing their use of as-a-service consumption for offerings such as device-as-a-service and platform-as-a-service, the report says.
By providing new platforms and frameworks architected for the future, typically built with open-source technologies in hybrid multi-cloud environments, providers are allowing companies to find alternatives to mass layoffs, ISG says. These platforms provide data that empowers employees to make decisions, execute services, perform diagnostics and manage the shop floor just as they would on a physical network.
In addition, service providers are helping manufacturing enterprises use digital transformation to address the entire product lifecycle, starting from the design and testing phases and extending beyond production to delivery and service, ISG says. Companies want products in customers’ hands to be as connected as possible for maintenance, troubleshooting, supply management and visibility into how the product is used.
The 2020 ISG Provider Lenstm Manufacturing Industry Services report for the U.K. evaluates the capabilities of 82 providers across five quadrants: Smart Manufacturing Services ? Automotive, Smart Manufacturing Services ? Hi-Tech, Production Automation Solutions, Manufacturing Virtualization Solutions and OT Security Solutions.
The report names AVEVA, Capgemini (Altran), Dassault Systèmes, HCL, Infosys, Siemens, TCS, Tech Mahindra and Wipro as leaders in two quadrants. It names ABB, Alten, Ansys, Attivo Networks, AVL, Bertrandt, Claroty, eInfochips, GE Digital, Honeywell, IBM, Indegy (Tenable), Kaspersky, Nozomi Networks, PTC, Rockwell Automation and SAP as leaders in one quadrant each.
In addition, Cognizant, iBASEt, Lighthouse Systems, LTTS, SAP and SCADAfence are named as Rising Stars?companies with a “promising portfolio” and “high future potential” by ISG’s definition?in one quadrant each.
A customized version of the report is available from eInfochips.
The 2020 ISG Provider Lenstm Manufacturing Industry Services report for the U.K. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lenstm Research
The ISG Provider Lenstm 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., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
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.
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 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 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.
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