Manufacturers are accelerating their digital transformation by integrating AI, IoT, and advanced analytics into core operations to enhance resilience, efficiency, and accuracy, according to the 2025 ISG Provider Lens® Manufacturing Industry Services and Solutions — Mid-Tier and Specialist IT Firms report. The research from Information Services Group (ISG), a global technology advisory firm, highlights a strategic shift from isolated digital projects to coordinated, enterprise-wide modernization efforts. Companies are adopting digital operating models that balance innovation with operational control. Mid-tier and specialist IT providers are playing a key role by offering modular, adaptable solutions that integrate seamlessly with existing legacy systems. These partnerships help manufacturers modernize outdated infrastructure while achieving measurable improvements in performance and agility. AI is moving beyond pilot programs and now delivers tangible benefits across shop floors, engineering workflows, and supply chain management. Applications such as AI-driven analytics, digital twins, and predictive maintenance are being embedded into daily operations to reduce unplanned downtime, improve forecasting accuracy, and optimize asset utilization. These capabilities enable faster responses to shifting market demands and support cost containment. Smart factory initiatives are advancing rapidly, with manufacturers integrating robotics, real-time monitoring, and IoT platforms to create interconnected production environments. By replacing fragmented systems with unified, interoperable platforms, companies are improving quality control, shortening production cycles, and enhancing responsiveness in volatile markets. Sustainability is emerging as a central pillar of manufacturing technology strategy, particularly in Europe. Digital platforms are being used to track carbon emissions, optimize energy use, and support circular economy practices. These tools help manufacturers meet stringent regulatory requirements while aligning environmental goals with operational efficiency, risk mitigation, and long-term profitability. The report also identifies key trends shaping the sector, including supply chain regionalization, workforce augmentation through automation, and growing cybersecurity concerns as IT and operational technology (OT) systems converge. ISG evaluated 41 providers across four service quadrants: Design and Development Services, Smart/Digital Factory Services, Supply Chain and Aftermarket Services, and Technology, Transformation, and Consulting Services. MHP was named a Leader in all four quadrants. IndX, Hexaware, Hitachi Digital Services, ITC Infotech, and Perficient were recognized as Leaders in three quadrants each. Birlasoft, Cyient, FPT Software, HARMAN DTS, LTTS, Persistent Systems, Quest Global, Randstad Digital, Stefanini, Tata Elxsi, UST, and Zensar Technologies were named Leaders in two quadrants each. ACL Digital, All for One Group, AXISCADES, eInfochips, Mastek, Nagarro, Softtek, and Syntax were Leaders in one quadrant each. Additionally, All for One Group, Happiest Minds, and ITC Infotech were named Rising Stars—firms with promising portfolios and strong growth potential. Customized versions of the report are available from Hexaware, LTTS, Stefanini, and Softtek. The full report is accessible to subscribers or for individual purchase on ISG’s website. The ISG Provider Lens® research series combines data-driven analysis with insights from ISG’s global advisory team, offering enterprises a trusted resource for selecting technology partners. With coverage across North America, Europe, and Asia-Pacific regions, the research supports strategic decision-making in an evolving digital landscape.