ISG to Map A&D's Digital Future Amid Global Pressures

STAMFORD, Conn. – December 16, 2025

Information Services Group (ISG), a global AI-centered technology research and advisory firm, has announced the launch of a major research study into the service providers powering the aerospace and defense (A&D) sector's digital overhaul. The findings, set to be published in May 2026, will provide a critical roadmap for an industry grappling with unprecedented production backlogs, persistent supply chain disruptions, and escalating geopolitical tensions.

The comprehensive reports, titled "ISG Provider Lens® Aerospace and Defense Services and Solutions," aim to bring clarity to a complex and rapidly evolving vendor ecosystem. As A&D organizations race to modernize legacy systems and adopt next-generation technologies, the study will evaluate the partners best equipped to help them navigate this transformation.

The Digital Imperative in a High-Stakes Sector

The A&D industry is at a critical inflection point. The dual pressures of revitalizing commercial aerospace post-pandemic and meeting the urgent modernization demands of national defense have created an environment where technological adoption is no longer optional, but essential for survival and strategic advantage. Companies are moving beyond incremental improvements and embracing a fundamental digital transformation of their core operations.

This shift is powered by a suite of emerging technologies. Artificial intelligence and predictive analytics are being deployed to optimize everything from maintenance, repair, and overhaul (MRO) schedules for aging fleets to complex supply chain logistics. Digital twins—virtual replicas of physical aircraft and systems—are enabling engineers to design, test, and validate components with greater speed and accuracy, drastically shortening development cycles. The use of lightweight, durable materials and additive manufacturing is also revolutionizing production efficiency and aircraft performance.

However, the path to modernization is fraught with challenges. Many organizations are burdened by decades-old legacy IT infrastructure, particularly Enterprise Resource Planning (ERP) systems, that are ill-equipped for the digital age. The increasing reliance on connected systems and cloud platforms introduces significant cybersecurity vulnerabilities that must be addressed. Furthermore, a persistent skills gap makes it difficult to find and retain talent with the expertise required to implement and manage these new digital tools, forcing many to rely on external service providers.

“Aerospace and defense enterprises are working to shorten design and testing processes and increase production,” said Iain Fisher, director at ISG, in the original announcement. “Service providers support these efforts by improving supply chain readiness and enabling organizations to meet defense modernization requirements and commercial aircraft production schedules.”

Charting the Provider Landscape

ISG's upcoming study aims to provide a clear, data-driven guide for A&D enterprises seeking technology partners. By surveying more than 120 providers, the research will evaluate their capabilities across five distinct areas, or "quadrants," that represent the primary services being sought by the industry.

The five quadrants are:
* Engineering, Design and Innovation: This evaluates providers that help integrate digital tools like model-based definitions and digital twins to accelerate aircraft development.
* Maintenance, Repairs and Overhauls (MRO) and Aftermarket: This assesses firms using AI and predictive analytics to enhance maintenance planning and reduce aircraft downtime.
* Supply Chain Operations and Logistics Management: This quadrant focuses on providers deploying IoT, AI, and machine learning to build more resilient and transparent supply chains.
* Technology Transformation and Consulting: This covers partners that guide A&D enterprises in adopting AI, automation, and secure data solutions to overhaul key operations.
* Aerospace and Defense Services: A specialized quadrant assessing providers that cater specifically to the needs of midsize enterprises.

This structured evaluation is designed to help enterprise buyers, from procurement officers to IT directors, vet potential vendors and benchmark the performance of their current partners. The research builds on ISG's existing work in the sector, including its 2025 Provider Lens reports for the U.S. and European markets, which identified firms like Accenture, Capgemini, HCLTech, IBM, Infosys, and TCS as leaders in various categories.

A Strategic Move in a Competitive Field

The launch of the 2026 study represents a strategic deepening of ISG's commitment to the A&D sector, a high-value market where specialized advisory services are in strong demand. By expanding its research, the firm is positioning itself to become a go-to advisor for companies navigating one of the most complex industrial transformations in recent history.

ISG operates in a competitive landscape alongside other major research and advisory firms like Gartner and Forrester, which also provide analysis on technology trends and vendors in the A&D space. However, ISG differentiates its Provider Lens series through a methodology it describes as "practitioner-led." This approach combines empirical, data-driven analysis with the real-world experience and observations of its global advisory team, aiming to deliver insights that are not only academically sound but also practically applicable in real-world procurement and strategy decisions.

The inclusion of expanded customer experience (CX) data, based on continuous research into enterprise experiences with specific providers, further strengthens this value proposition. For A&D companies making multi-million dollar investments in digital services, this blend of market data and peer experience provides a crucial layer of validation and risk mitigation.

Spotlight on the Mid-Market Engine

Notably, the 2026 study dedicates an entire quadrant to service providers catering to midsize A&D enterprises. This focus acknowledges the vital role these smaller, more agile firms play within the broader industry ecosystem, often as critical suppliers and innovators. While they face the same market pressures as their larger counterparts, midsize companies often operate with fewer internal resources and less capital for sweeping transformation projects.

These firms require scalable, cost-effective digital solutions and often depend on external partners for specialized expertise in areas like product lifecycle management, fleet optimization, and advanced supply chain analytics. The ISG report's focus on this segment will help connect midsize enterprises with providers that offer tailored capabilities, supporting their growth and enhancing their ability to compete for government contracts and a place in the global supply chain. By spotlighting the providers that excel in this niche, the study will offer invaluable guidance to a segment that forms the backbone of the A&D industry. As the sector continues its rapid evolution, the ability to identify and partner with the right technology providers will be a deciding factor between leading the charge and being left behind.