IT major Tata Consultancy Services, owned by the Tata Group, has become the second-most valuable company in the IT services sector in the world, according to a valuation firm survey. On the other hand, Infosys, Wipro, Tech Mahindra, HCL Technologies and LTI firmly established themselves among the top 25 companies in the global scenario with other IT elites across the world.
As per leading valuation company Brand Finance, Tata Consultancy Services or TCS has risen up to second position in the ‘Brand Finance IT Services 25 2022’ ranking. This comes after a 12 per cent growth of the Indian IT major year on year and 24 per cent since 2020. This led TCS reach a brand value of $16.8 billion during this period.
Accenture however retained the title of world’s most valuable and strongest IT services brand, boasting record brand value of USD 36.2 billion, as per the report.
“TCS has not only successfully managed the challenges posed by the COVID-19 pandemic to continue developing its business operations around the world, but also maintained momentum with brand partnerships and sports sponsorships,” Brand Finance said in its report.
“Also worth-noting is TCS’ focused commitment to serving the needs of its employees, customers, and communities, which always – in the long run – drives brand performance,” said David Heigh, CEO and chairman of Brand Finance.
“TCS’ sustained investments in building deep capabilities on new technologies, research and innovation, intellectual property, and customer-specific contextual knowledge have made it the preferred growth and transformation partner to leading corporations across the world,” TCS said in a regulatory filing on its website.
It added that strong revenue growth in 2021 saw TCS hit $25 billion in revenue for the first time, with an industry-leading operating profit margin of over 25 per cent.
TCS beat industry major IBM to secure its position, while IBM slipped to the fourth position in terms of valuation.
According to the Brand Finance report, India will continue to play a major role in developing infrastructure for artificial intelligence, data analytics and Internet of Things (IoT) with the help of its strong IT services brands and a large population of people with digital skills.
All the six IT majors of India — TCS, Infosys, Wipro, Tech Mahindra HCL Technologies and LTI — featured in the top 25 companies of the report.
On the other hand, Infosys claimed the third position in terms of valuation and emerged as the fastest-growing IT services brand globally following 52 per cent brand value growth since last year and 80 per cent since 2020 to USD 12.8 billion. 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, the Brand Finance report said.
While digital transformation accelerated during the Covid-19 pandemic, Wipro’s performance demonstrated strong revenues and growth in brand value, the report said. HCL – which has signed 58 projects across various sectors saw 10 per cent growth in brand value over the past year to USD 6.1 billion. Tech Mahindra had a brand value growth of 45 per cent over the last two years to USD 3 billion. The growth is a result of focussed brand building efforts, the report said.
(With PTI inputs)
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