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U.S. aerospace and defense enterprises are adopting integrated digital practices, AI-enabled design and software-centric development approaches as the requirements for competitiveness change, according to a new research report published by Information Services Group (ISG), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® Aerospace and Defense Services and Solutions report for the U.S. finds that enterprises are prioritizing resilience and execution speed as geopolitical pressures, supply chain constraints and regulatory demands reshape industry dynamics. Organizations are adopting technologies and processes for faster delivery while maintaining reliability and cost control.
“Execution discipline has become as important as technological capability in aerospace and defense,” said Bob Krohn, ISG partner, Manufacturing. “Enterprises are integrating engineering, production and predictive fleet sustainment into unified operational models that support continuous delivery.”
Aerospace and defense companies in the U.S. are steadily expanding the use of digital engineering in design and production. They are deploying technologies such as model-based systems engineering, AI-based design methods and digital twins, once limited to pilot projects, at enterprise scale. These capabilities allow organizations to shorten development timelines, increase production efficiency and improve asset availability over time. Using software-centric practices, companies can deliver incremental updates in critical systems, including command and control and unmanned platforms, with greater speed and consistency.
At the same time, organizations are restructuring supply chain strategies to balance resilience with cost considerations. Many are reassessing their approaches to sourcing, increasingly exploring reshoring and nearshoring options in key segments such as electronics, propulsion and advanced materials. These moves are in response to ongoing supply disruptions, workforce shortages and aging infrastructure, which continue to slow production and raise costs.
Cybersecurity and infrastructure protection have become even higher priorities for U.S. aerospace and defense enterprises as regulatory scrutiny intensifies. Companies are investing in advanced security measures to protect critical systems and communications from evolving threats. At the same time, they are adapting to stricter environmental and export requirements that increase operational complexity. These efforts are leading to more integrated and secure digital environments across both defense and commercial operations, ISG says.
“Enterprises are applying dramatically new technologies and development approaches to large-scale defense programs and commercial aviation platforms in the U.S.,” said Swadhin Pradhan, ISG principal analyst and lead author of the report. “Providers are helping clients take on major digital engineering and supply chain initiatives, often through outcome-driven engagements and managed services models with performance guarantees.”
The report also explores other trends affecting the U.S. aerospace and defense sector, including the ongoing recovery in commercial aviation, focused on reliability and efficiency, and increased investment in space-based capabilities such as satellite systems and launch services.
For more insights into the challenges faced by aerospace and defense enterprises in the U.S., along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The report evaluates 48 providers across four quadrants: Engineering, Design and Innovation; Maintenance, Repairs and Overhaul (MRO) and Aftermarket; Supply Chain Operations and Logistics Management; and Technology Transformation and Consulting.
The report names Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys and TCS as Leaders in all four quadrants. It names LTTS and Tech Mahindra as Leaders in three quadrants each. Akkodis, Cyient, Deloitte, DXC Technology, EY, General Dynamics IT, PwC and Quest Global are named as Leaders in two quadrants each. Alten, CGI, Cognitus, Genpact, Kyndryl and Thales are named as Leaders in one quadrant each.
In addition, Hitachi Digital Services, Quest Global and Tata Technologies are recognized as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
