Why TCS, Infosys Emerge Among the World’s Most Valuable Tech Firms
India’s largest IT services company Tata Consultancy Services (TCS) and the second largest firm Infosys have been named among the most valuable IT services brands globally, according to a report by brand valuation firm.
Indian IT services companies continue to fly high in terms of brand values in the global ranking. A new study has placed Tata Consultancy Services (TCS) and Infosys as the second and third most valuable IT services companies in the world, worth $16.8 billion and $12.8 billion.
These are the highest ranks the Indian tech giants have ever achieved, though they have featured in the global top 10 for a decade. TCS saw its brand value in 2022 stand at $16.8 billion, up $1.8 billion over last year. Infosys saw its brand valuation increase by 52% year on year to $12.8 billion. It has grown over 80% since 2020, said the Brand Finance report, a London-based chartered accountancy firm.
Other Indian brands that figured in the list of global elites include Wipro (7th), HCL Technologies (8th), Tech Mahindra (15th) and L&T Infotech (22nd), said the report.
Accenture, the Dublin-headquartered multinational that has 250,000 employees in India, tops the 2022 list as the world’s most valuable IT services brand with a brand value of $36.2 billion, as per the report.
The digital transformation of the global economy accelerated by the Covid pandemic has helped Indian tech companies. Their brand values have grown 51 per cent on average over the last two years, while US brands have shrunk by 7 per cent. IBM Consulting, an earlier top brand, has fallen out of the top 3 for the first time, the report said.
Tata Group is the most valuable brand in South Asia and India’s only entry in the top 100, with a brand value of $23.9 billion, following a 12% increase from the previous year. In addition, Chairman of Tata Sons, Natarajan Chandrasekaran, ranks as the top CEO in India and stands at 25th position globally in the Brand Guardianship Index 2022.
Infosys has also been recognized as the fastest-growing IT services brand in the world and among the Top 25 fastest-growing brands across sectors globally. Other top Indian IT service companies in the list include Wipro and HCL Technologies at seventh and eight spot respectively along with Tech Mahindra at 15th position and mid-tier firm LTI (Larsen & Toubro Infotech) at the 22nd spot.
The report said that Indian IT services brands grew 51% between 2020 and 2022 while American brands saw a decline of 7%. This growth coincides with the increased demand and revenue growth reported by these companies since the pandemic due to a massive global demand for digital transformation solutions.
Brand value is a key financial asset essential for mergers and acquisitions. Besides a stellar revenue growth, experts believe a company’s Code of Conduct and its loyalty to customers often play a prominent role in measuring brand value. It has also has to do with the corporate identity, such as promotions and marketing.
The report looks at more than 20 metrics across three pillars to derive the index: brand investment, which are activities supporting the future strength of the brand; brand equity, which are real perceptions sourced from its market research and secondary research; and brand performance, which are brand-related performance measures such as revenues, forecast outlook and ability to execute, said a statement.
According to the report, among the measures that helped TCS and Infosys strengthen its brand in its core markets in the US and Europe were sponsorship of marathons and other sports event sponsorships and partnerships across the globe. The Indian stock markets have also rewarded TCS and Infosys over the years.
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. The partnership between Jaguar and TCS involves research and data analytics around automotive engineering and sustainable energy with an aim for low carbon emissions, said the report.
Similarly, Infosys made strategic investments in several digital and brand collaborations. This includes Infosys’ Signature Marketing Partnership with the Madison Square Garden – also making Infosys the Official Digital Innovation Partner of key MSG properties including the New York Knicks, New York Rangers and the Madison Square Garden Arena. In addition, the company has collaborations with the ATP, Roland Garros and the Australian Open while forging new ones with The Economist, Financial Times and Bloomberg Media.
Wipro reported a brand value of $6.3 billion with an increase of 48% since the previous year. HCL saw 10% growth in brand value over the past year to $6.1 billion. Tech Mahindra saw a brand value growth of 45% over the last two years to a brand value of $3.0 billion rising to be the 7th strongest brand. From 2020, LTI’s brand value has increased by an impressive 83% to US$1.1 billion. The Indian multinational also grew modestly with positive improvements in their Brand Strength Index (BSI) which shows a promising long-term growth in 2022.
