Tata Consultancy Services (TCS) has become the second most valued brand in the information technology (IT) services sector globally, while Accenture retains the title of the world’s most valuable and strongest IT services brand, according to Brand Finance.
Infosys has emerged as the fastest growing IT services brand following 52 per cent brand value growth since last year and 80 per cent since 2020 to $12.8 billion, earning it third spot, the brand valuation consultancy said in its latest Global 500 IT Services Ranking report.
TCS and Infosys have pushed IBM to fourth spot from second. IBM’s brand value now stands at $10.6 billion, a decline of 34 per cent from last year and 50 per cent since 2020. The US technology major’s brand value has fallen significantly after the divestment of Kyndryl.
The sale caused a loss of over $19 billion in revenue to IBM, impacting its brand value.
The ranking of TCS, valued at $16.8 billion, was propelled by its business performance and successful partnerships, said the report. TCS grew its brand value by $1.84 billion (12.5 per cent) to $16.78 billion over the last 12 months. This growth is attributed to the company’s investments in its brand and its employees, customer equity, and strong financial performance, it said.
Indian IT services companies 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, the report said. The average growth of Indian brands that have appeared in the Brand Finance IT Services ranking since 2020 is an impressive 51 per cent, while the US brands have on average contracted by 7 per cent.
“Despite the global pandemic and its inevitable impact on businesses, the IT services and technology sector has proven that it is equipped to perform with successful results. By re-evaluating the market and gaining a clear focus on cloud services, technology consulting, machine learning, and artificial intelligence, IT services brands – from India and around the world – will continue to flourish and innovate in the face of challenges posed by pandemic-related shortages and restrictions,” said Savio D’Souza, valuation director, Brand Finance.
Reacting to the report, TCS said the ranking was a validation of its increased market relevance and focus on innovation and transformation of clients, their customers, and the larger community. “Our new brand positioning ‘Building on belief’ captures our aspirations and convictions. Our ‘customer-centric focused’ strategy and focus on research and innovation over the last decade positions us to capitalise on upcoming opportunities,” Rajashree, chief marketing officer, TCS, said in a statement.
Salil Parekh, CEO, Infosys, said, “Our clients have rapidly scaled their digital adoption in the last two years and have reposed tremendous trust and confidence in our ability to help them transform.”