Firms expand AI-driven engineering through large-scale projects to increase productivity, efficiency, resilience, ISG Provider Lens^® report says

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STAMFORD, Conn. -- (Business Wire)

Enterprises in the U.S. are strengthening digital engineering capabilities by embedding AI across business functions to make their operations more predictable, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Digital Engineering Services (Large) report for the U.S. finds that organizations are shifting from siloed development to integrated engineering models that support enterprise-wide transformation. The report evaluates large service providers with annual revenue over $2 billion, and a later report will cover midsize providers. Companies are increasing investments in AI-enabled platforms and in services from large providers to achieve measurable business outcomes. The rapid evolution of large language models (LLMs) is changing business models and giving enterprises the confidence and capital to pursue broad AI and machine learning initiatives.

“U.S. enterprises are redefining engineering as a strategic activity that extends across their value chains,” said Shafqat Azim, partner, ISG. “They are aligning AI with core operations to achieve greater efficiency, adaptability and long-term resilience.”

As companies in the U.S. integrate AI into digital engineering, they gain the ability to take more holistic approaches that produce benefits throughout the organization, the report says. Enterprises are adopting intelligent platforms that connect data, applications and processes, enabling continuous insights and automated responses. This strategy lets businesses move from isolated automation to enterprise-wide optimization. Engineering is evolving from a static build process into a fluid system, central to business performance and innovation, in which infrastructure and applications evolve autonomously in response to enterprise needs.

Companies are modernizing legacy environments by adopting composable, cloud-native architectures that improve scalability and enable faster deployment cycles, ISG says. The adoption of agentic AI is increasing, with autonomous systems executing multi-step processes as part of digital-human hybrid workforces. These changes help organizations reduce complexity while improving responsiveness and system efficiency.

U.S. enterprises are standardizing AI-augmented development processes to automate repetitive tasks such as testing, documentation and basic code refactoring, reducing manual effort and shortening timelines. Beyond this initial focus on efficiency, AI-enabled development is evolving toward deeper use cases that directly influence core business metrics.

“Enterprises are looking beyond early efficiency gains to focus on measurable business impact,” said Shirish Kulkarni, lead author of the report. “Large service providers support this shift by enabling scalable architectures and helping organizations operationalize advanced AI capabilities.”

The report also explores other digital engineering trends in the U.S., including the rise of intent-driven engineering models and an increasing focus on sustainability in technology operations.

For more insights into the digital engineering challenges faced by enterprises in the U.S., along with ISG’s advice for addressing them, see the ISG Provider Lens^® Focal Points briefing here.

The 2026 ISG Provider Lens^® Digital Engineering Services (Large) report for the U.S. evaluates the capabilities of 25 providers across three quadrants: Augmented Design and R&D Services, Intelligent Operations and Connected Experiences and Integrated Platform and Application Services.

The report names Accenture, Capgemini, Cognizant, GlobalLogic, HCLTech, Infosys, TCS and Wipro as Leaders in all three quadrants. It names LTM and Tech Mahindra as Leaders in two quadrants each. Akkodis, Deloitte, IBM 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. Tech Mahindra was named as a Rising Star in one quadrant.

In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2026 among large digital engineering service providers. HCLTech 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 AKKODIS.

The 2026 ISG Provider Lens^® Digital Engineering Services (Large) report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Contacts:

Press Contacts:

Laura Hupprich, ISG
+1 203-517-3100
laura.hupprich@isg-one.com

Eric Arvidson, Matter Communications for ISG
+1 978-518-4542
isg@matternow.com

Source: Information Services Group, Inc.