Engineering and R&D Pulse 2026
Capgemini Research Institute 2025 RESEARCH BRIEF How are engineering leaders
navigating speed, agility, and cost pressures in the age of AI?
Most now accept that every company must become a software company. Ten years ago, we were discussing how Amazon, Airbnb, and Netflix reshaped shopping, travel booking, and entertainment by delivering those services through computers and phones....
01 Executive summary
02 The urgency for engineering and R&D transformation is real
03 Unlocking efficiency and agility: Digitization and diversified outsourcing top the agenda
04 Emerging technologies are catalysts for engineering and R&D transformation
05 AI is shaping the future of engineering and R&D
06 Sustainability is becoming central to engineering
07 Recommendations
08 Research methodology
09 Appendix
About Capgemini
This report is primarily intended for senior decision-makers in engineering and R&D functions – including chief R&D officers, VPs and heads of engineering or product development, chief technology officers (CTOs), and innovation directors – who are navigating today’s challenging business landscape. It provides an overview of the strategic evolution of engineering and R&D functions in response to rising cost pressures, longer time-to-market cycles, intensifying global disruptions – from supply chain shocks to talent shortages – and the impact of technology, especially AI.
The report is also relevant to chief financial officers (CFOs) and chief supply chain officers, whose decisions regarding capital allocation, procurement strategy, and supplier ecosystems shape the effectiveness and agility of engineering functions. Informed by insights from 1,500 global executives, the report distills the key trends, organizational shifts, and technology priorities that are redefining market competition and strategic direction. It offers actionable guidance to help decision-makers navigate disruption and accelerate transformation in a fast-changing environment.
