TCS becomes the second most valuable IT services brand globally

Tata Consultancy Services has become the second most valuable brand in the IT services sector globally, according to Brand Finance. While Accenture continues to be at the top spot, Infosys is in the third position, followed by IBM.

IT services companies from India have outpaced their competitors from the United States in brand value growth over the past two years of digital transformation in the global economy, accelerated by the COVID-19 pandemic, according to a new report by the brand valuation firm.

Brand value

According to the Brand Finance 2022 Global 500 IT Services Ranking report, TCS grew its brand value by $1.844 billion (12.5 per cent) to $16.786 billion over the last 12 months. This growth is attributed to its investments in its brand and its employees, customer equity and strong financial performance.

TCS has made consistent, long-term efforts to increase its brand value over the past decade, including investing in major brand sponsorships. In 2021 alone, it added the TCS London Marathon and the TCS Toronto Waterfront Marathon to its roster of 11 running sponsorships, announced its partnership for the Jaguar TCS racing team in Formula-E motorsports and forayed into golf by partnering with the Dutch Open.

In addition, strong revenue growth in 2021 saw TCS cross an important milestone, hitting $25 billion in revenue for the first time, with an industry-leading operating profit margin of over 25 per cent.

TCS gain has been IBM’s loss as it dropped out of the top 3. IBM’s brand value now stands at $10.6 billion with a 34 per cent decrease from the previous year, and a 50 per cent drop overall since 2020. The brand value of the US-based multinational IBM has fallen significantly after the divestment of Kyndryl. The sale caused a loss of over $19 billion in revenue which impacted IBM’s brand value.

Infosys’ brand value

Infosys has seen the fastest increase in brand value among all brands in the ranking this year. Following 52 per cent growth to $12.8 billion, it is now the world’s 3rd most valuable IT services brand. Over the past two years of the Covid-19 pandemic, the change is even more impressive, with the brand recording an 80 per cent gain.

Following TCS and Infosys, there are four more Indian brands now firmly established among the global elite: Wipro (7th), HCL (8th), Tech Mahindra (15th), and LTI (22nd).

“We are delighted and proud to be named among the top two in the Brand Finance 2022 Global 500 IT Services Ranking report. The ranking is a landmark milestone for us and a validation of our increased market relevance and focus on innovation and transformation of our clients, their customers, and the larger community. This recognition is also a testimony to our employees, who are our true brand custodians, and the belief with which they have rallied for us over the years,” said Rajashree R, CMO, TCS.

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