TCS third most valued IT services brand globally: Brand Finance
Tata Consultancy Services (TCS) has been ranked third most-valued IT services brand globally, after Accenture and IBM, according to a report by Brand Finance.
Four Indian IT services companies -- TCS, Infosys, HCL and Wipro -- secured spots in the top-10 global tally.
"Third-ranked TCS is rapidly closing the gap with IBM following a healthy 11% brand value increase to USD 15 billion," the report by Brand Finance said.
TCS has celebrated strong revenue growth as demand grows for its core transformation services and through winning deals - worth over $6.8 billion in the fourth quarter of 2020 alone, it added.
"With the brand benefiting from the long cycle of technology spending in its overseas markets, and the increase in spending from the financial sector in the US and European markets as the road to recovery begins, TCS will be hoping the coming year will prove even more fruitful," the report said.
Accenture retained the title of world's most valuable and strongest IT services brand with record brand value of $26 billion, while IBM continued at the second place with brand value of $16.1 billion.
The report said 'Brand value' refers to the present value of earnings specifically related to brand reputation.
"With what was a very tough 2020, led so ably by its CEO Rajesh Gopinathan, TCS has excelled itself once again. Along with 10% growth in its brand, its market cap also hit pole position in its industry and it is increasingly closing in on the top two in the IT services sector table," Brand Finance CEO (Chief Executive Officer) David Haigh said.
Rajashree R, Chief Marketing Officer at TCS, said this recognition of TCS' brand strength is a stellar reaffirmation of the continued trust that customers have placed in the company.
"We are proud and excited to embark on the next phase of our growth, building on our beliefs, and harnessing the passion, dedication and strength of our 469,000 associates who are the true custodians of Brand TCS," he added.
The report noted that Infosys has overtaken Cognizant at the fourth spot, following a 19% brand value increase to $8.4 billion. Cognizant has suffered a 6% brand value loss of $8 billion. The Bengaluru-based company has entered the "Big 4 of IT services brands globally and making it the fastest growing brand in the top 10", it added.
"Even before the pandemic, Infosys' leadership recognised the importance of focusing on its service offering, including data security and cloud services. This focus, paired with key acquisitions to bolster the brand's end-to-end customer experience offerings, has propelled Infosys to a position where it consistently wins larger consulting, data management and cloud service projects," the report said.
HCL was at the seventh spot, while Wipro ranked ninth in the tally.
Tech Mahindra saw 11% brand value growth to $2.3 billion that has enabled the brand to jump to the 15th spot in this year's ranking as it continues to work towards accelerated growth through building on its healthy pipeline deals and embracing new 5G opportunities, the report said.
"Being recognised as one of the fastest growing organisation globally is a true testimony of our collective spirit of resilience...At Tech Mahindra, we took this challenge on war footing to ensure business continuity and enhanced customer experience through innovative and purpose-driven initiatives, while also living up to our promise of delivering 'Connected World and Connected Experiences'," Harshvendra Soin, Global Chief People Officer and Head of Marketing at Tech Mahindra, said.
LTI was named as the sector's fastest growing with 37% brand value growth to $982 million (ranked 21) by the report.
"For the last five years, LTI has consistently delivered double digit growth year-on-year and shows no signs of slowing down. As a young brand, it is rising quickly within a highly competitive space, and is fast becoming one of the most exciting challenger brands within the sector," it added.
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