India’s $190 billion IT services industry has shown a phenomenal growth trajectory, with the brand value of leading IT service providers increasing by 51% between 2020 and 2022 compared to its US competitors whose value of the brand contracted by 7% during the period, a report by global brand valuation consultancy, Brand Finance said.
The report mentions that Indian IT services companies have leveraged the opportunity of the pandemic better than their global counterparts by diversifying their services and expanding into new geographies.
Notably, Tata Consultancy Services (TCS) and local rival Infosys took the place of the world’s second and third most valuable IT services companies, pushing US tech giant IBM into fourth place. Accenture, meanwhile, retained the position of the most valuable IT services brand in the world with a brand value of $36.2 billion.
The valuation of TCS and Infosys was $16.8 billion and $12.8 billion, respectively. IBM’s brand value now stands at $10.6 billion, down 34% from the previous year and down 50% overall since 2020. The brand value of the American multinational IBM fell significantly after the Kyndryl divestment. The sale caused a loss of more than $19 billion in revenue, which impacted the value of the IBM brand, the report noted. However, IBM is expected to see a strong recovery thanks to the focus on its core competencies.
TCS and Infosys shine during the pandemic
TCS and Infosys grew 24% and 52%, respectively, between 2020 and 2022. Interestingly, TCS’s long-standing commitments to sponsor sporting events, including marathons, have worked in its favour, while Infosys is posting strong quarterly results with a huge digitization push.
TCS has not only successfully met the challenges posed by the COVID-19 pandemic to continue to grow its business operations around the world, but has also maintained momentum with brand partnerships and sports sponsorships. In addition to actively sponsoring marathons around the world in New York, Toronto, London and Amsterdam, TCS will be the title sponsor of the Jaguar Formula E team, which is a championship using exclusively electric vehicles.
This partnership between Jaguar and TCS involves research and data analysis around automotive engineering and sustainable energy with the aim of reducing carbon emissions, the report says.
According to David Haigh, President and CEO of Brand Finance, TCS’ strong positioning has enabled its success.
“TCS continues to climb the IT services rankings to become the second most valuable brand in the industry for the first time. This great achievement is the result of strong financial growth, solid and continuous investments in a new global positioning of the brand last year, new investments in the sponsorship of marathon events, but also new sports such as than the switch to Formula-E. Also noteworthy is TCS’ focused commitment to meeting the needs of its employees, customers and communities, which always – in the long run – drives brand performance,” added Haigh.
Similarly, Bengaluru-headquartered Infosys has grown the fastest of any of its rivals at a staggering 51%, with the brand able to scale its services to suit the new economy and customer requirements.
Infosys also continued to build brand recognition globally by nurturing sports collaborations with the ATP, Roland Garros and the Australian Open, while forging new ones with Madison Square Garden and heavyweights. media – The Economist, Financial Times, Bloomberg, according to the report. .
“As the COVID-19 pandemic has spurred the need for digital transformation across the globe, Infosys has risen to the challenge, resulting in a monumental 80% jump in brand value over the past two years. Also looking to the future, Infosys is a brand to watch and we can expect to see continued growth in brand value in the years to come,” said Haigh.
Indian companies show strong potential
The various other IT services companies including HCL Technologies, Wipro, L&T Infotech, Tech Mahindra also grew during the pandemic, improving its ranking.
As digital transformation accelerated during the COVID-19 pandemic, Wipro’s performance demonstrated strong revenue and brand value growth. The Bangalore-based conglomerate has a brand value of $6.3 billion with a 48% increase from the previous year. In 2021, shares of Wipro were at an all-time high. The company is also significantly expanding its scale having hired 40,000 new employees in 2021 alone. nine new contracts worth $580 million.
HCL recorded a 10% growth in brand value over the past year to $6.1 billion. The brand has signed 58 projects in various sectors, including telecommunications, life sciences, manufacturing and technology. The brand announced that its revenue increased 2.4% year-on-year to a total of $10.2 billion.
Tech Mahindra holds a strong position in the IT services industry with brand value growth of 45% over the past two years to reach a brand value of $3.0 billion and impressive growth of + 1.9 points to 76.0 in the brand strength index, becoming the 7th strongest brand, according to the report.