January 22, 2022: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS) has become the second most valuable brand in the IT services sector globally, according to Brand Finance, the world’s leading brand valuation firm.
Accenture retains the title of the world’s most valuable and strongest IT services brand.
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.
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.
There are four more Indian companies in the top 25 IT services brands -- Wipro (7th), HCL (8th), Tech Mahindra (15th) and L&T Infotech (22nd).
According to the Brand Finance 2022 Global 500 IT Services Ranking report, TCS grew its brand value by $1.844 billion (12.5%) to $16.786 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.
TCS has made consistent, long-term efforts over the past decade to increase its brand value, 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.
The company has also made significant investments in its brand by developing its Building on Belief brand positioning to articulate its mission and relationship with customers as it embarks on its next decade of transformation-led growth. Its employer brand and reputation for employee care also contributed to its enhanced ranking.
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%.
In a separate finding this week, TCS was recognized as a Global Top Employer for the seventh year in a row by the Top Employers Institute. TCS is one of only 11 Global Top Employers recognized this year for excellence in people practices.
TCS is ranked the number one Top Employer in the United States, Europe and Asia Pacific; and number two in Latin America. In the country rankings, it is placed among the top three Top Employers across 19 countries for which the results have been announced – Australia, Hong Kong, China, India, Malaysia, Philippines, Singapore, Belgium, Denmark, Finland, Hungary, Netherlands, Sweden, Switzerland, Brazil, Chile, Saudi Arabia, United States and Mexico. In addition, TCS is named a Top Employer in the United Kingdom, France, Germany, Italy, Spain, United Arab Emirates, and South Africa.