Manufacturers modernize IT environments to develop software-defined products, ongoing digital services, ISG Provider Lens^® report says

North American automotive enterprises are undertaking digital transformation to reshape vehicle development, production and ownership, 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^® Automotive and Mobility Services and Solutions report for North America finds that automotive organizations are modernizing technology infrastructure and practices as vehicles become increasingly software-centric. Traditional hardware-centered engineering methods cannot support increasingly complex vehicle architectures and continuous feature delivery, and rapidly changing technology and customer demands require increasing flexibility. Embedded AI, agile development methods and unified, cloud-based data foundations are becoming essential to automakers’ viability.

"Software has redefined what makes a vehicle competitive," said Bob Krohn, ISG partner, Manufacturing. "Only automakers that treat digital capabilities as a constantly evolving value proposition at the core of product and business strategy can respond to customer expectations in this new era."

Automakers in North America are carrying out a significant transition in vehicle architecture from distributed electronic control units to centralized computing platforms that support almost all functions. A single hardware system can now carry out connectivity, infotainment, advanced driver assistance and autonomous driving capabilities. Crucially, unified computing streamlines development and deployment of personalized user experiences and digital services throughout vehicle ownership.

Manufacturers and suppliers are also modernizing software architectures to realize this transformation. Agile methods and DevSecOps practices help cross-functional teams manage complex lifecycles and deliver features continuously across product teams. Secure over-the-air updates extend enhancements throughout each vehicle’s lifespan while supporting new recurring revenue models and feature enhancements.

As they revamp their products, automakers are replacing fragmented legacy systems with cloud-based platforms spanning engineering, manufacturing, sales, service and connected vehicle data. Having a single data foundation improves visibility and collaboration while creating consistent information for strategic planning. AI and advanced analytics provide real-time insights for predictive maintenance, product quality, operational decisions and production planning.

Manufacturers are embedding cybersecurity by design across engineering, software development and after-sales operations as vehicles are exposed to new potential vulnerabilities. Identity management, continuous monitoring and stronger data governance frameworks are essential to protect vehicle safety, customer privacy and brand reputation while supporting regulatory compliance, ISG says.

"Software-defined mobility reaches far beyond the vehicle, increasing function and convenience but also risk," said Swadhin Pradhan, ISG principal analyst and lead author of the report. "Providers play a critical role when they enable engineering transformation while supporting secure, scalable enterprise operations."

The report also explores other trends in the North American auto industry, including the growing use of supply chain digital twins and the rising importance of new battery technologies.

For more insights into the challenges faced by enterprises in automotive and mobility enterprises in North America, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates 48 providers across five quadrants: Automotive Engineering and Manufacturing Services, Electric Vehicles (EVs) and Mobility Services, Autonomous Systems and Software-defined Vehicle, Automotive Retail and Aftermarket Services and Automotive Industry: Mid-tier and Specialist.

The report names Accenture, Capgemini, HCLTech, IBM, Infosys, KPIT, LTTS, TCS, Tech Mahindra and Wipro as Leaders in four quadrants each. It names Cognizant and NTT DATA as Leaders in three quadrants each. Akkodis, Alten, Cyient, Deloitte, eInfochips, EY, Hitachi Digital Services, Quest Global, Tata Elxsi and Tata Technologies are named as Leaders in two quadrants each. Birlasoft, Bosch SDS, CI&T, Genpact, LTM, MHP, PwC and Softtek are named as Leaders in one quadrant each.

In addition, Birlasoft, eInfochips, Hitachi Digital Services, Quest Global and Sasken Technologies are recognized as Rising Stars — companies with a ‘promising portfolio’ and ‘high future potential’ by ISG’s definition — in one quadrant each.

In the area of customer experience, MHP is named the global ISG CX Star Performer for 2026 among automotive and mobility service and solution providers. MHP 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.

The 2026 ISG Provider Lens Automotive and Mobility Services and Solutions report for North America 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261012786112/en/

Laura Hupprich, ISG

+1 203-517-3132

laura.hupprich@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 978-518-4542

isg@matternow.com