Accenture retains title of world’s most valuable and strongest IT services brand followed by TCS and Infosys
IT services companies from India have outpaced their competitors from the United States in brand value growth over the past two years of digital transformation in the global economy, accelerated by the COVID-19 pandemic, according to a new report. Accenture has retained the sector’s most valuable brand title for the fourth consecutive year with its brand value increasing by 39% over the past year to US$36.2 billion. Since the beginning of the pandemic in 2020, the tech giant’s brand value has seen a 43% increase – standing out from among other brands in the US.
The average growth of Indian brands that have appeared in the Brand Finance IT Services 25 2022 ranking since 2020 is an impressive 51%, while the US brands have on average contracted by -7%. Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest IT services brands are included in the annual Brand Finance IT Services 25 2022.
A global turn to remote working for professional services and an accelerated digitalisation trend across the global economy have facilitated expansion of IT services hubs within India. With strong IT services brands and a large population of people with digital skills, India will continue to play a major role in developing infrastructure for artificial intelligence, data analytics and Internet of Things (IoT).
IBM drops out of top 3
IBM’s brand value now stands at US$10.6 billion with a 34% decrease from the previous year, and a 50% drop overall since 2020. The brand value of the US-based multinational IBM has fallen significantly after the divestment of Kyndryl. The sale caused a loss of over $19 billion in revenue which impacted IBM’s brand value.
Nevertheless, the brand strength of IBM has increased by +3.3 points to a BSI score of 84.6 out of 100, making it the second strongest amongst IT services brands in the ranking. The decision to focus on their core competencies is likely to lead to recovery from the sale and gain momentum in the IT sector.
TCS and Infosys move up
As IBM has gone down to 4th rank, Tata Consultancy Services has risen up to 2nd in the Brand Finance IT Services 25 2022 ranking, following 12% growth year on year and 24% since 2020 to a brand value of US$16.8 billion.
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. Apart from actively sponsoring marathons across the globe in New York, Toronto, London, and Amsterdam, TCS will be the title sponsor of Jaguar Formula E team, which is a championship using electric vehicles exclusively. The partnership between Jaguar and TCS involves research and data analytics around automotive engineering and sustainable energy with an aim for low carbon emissions.
David Haigh, chairman and CEO, Brand Finance, commented: “TCS continues to rise up the IT services rankings to become the second most valuable brand in the sector for the first time. This great achievement is the result of strong financial growth, strong and continued investments in a new global brand positioning last year, further investment in the sponsorship of marathon events, but also new sports such as the move into Formula-E. 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.”
Infosys has seen the fastest increase in brand value from among all brands in the ranking this year. Following 52% growth to US$12.8 billion, it is now the world’s 3rd most valuable IT services brand. Over the past two years of the COVID-19 pandemic, the change is even more impressive with the brand recording an 80% gain.
Strong business results can be attributed to the brand’s ability to credibly adapt its offering to fast-evolving needs of today’s economy as well as to its continued investment into innovative solutions that help clients securely accelerate their journey to the cloud. Infosys has also continued to build brand recognition globally by nurturing sports collaborations with ATP, Roland Garros, and the Australian Open, while also forging new ones with Madison Square Garden and media-heavyweights – The Economist, Financial Times, Bloomberg.
David Haigh, chairman and CEO, Brand Finance, commented: “Infosys has shown impressive growth this year, making it the fastest-growing IT services brand of 2022, thanks to its commitment to clients and focus on innovation. While the COVID-19 pandemic spurred the necessity of a digital transition across the globe, Infosys stepped up to the challenge, resulting in its monumental 80% leap in brand value over the course of the past two years. Also looking into the future, Infosys is a brand to watch and one that can be expected to see continued brand value growth in the years to come.”
Indian star performers among the top 25 IT services brands
All six Indian brands in the Brand Finance IT Services 25 2022 ranking feature among the top 10 fastest-growing IT Services brands over the course of 2020-2022. Following TCS and Infosys there are four more Indian brands now firmly established among the global elite: Wipro (7th), HCL (8th), Tech Mahindra (15th), and LTI (22nd).
While digital transformation accelerated during the COVID-19 pandemic, Wipro’s performance demonstrated strong revenues and growth in brand value. The Bangalore-based conglomerate has a brand value of US$6.3 billion with an increase of 48% since the previous year. In 2021, Wipro’s shares were at a record high. The company is also expanding its scale at a great degree by having hired 40,000 new employees during 2021 alone. The increase in hiring talent and increasing the scale of the company is to meet requirements for the nine new contracts worth US$580 million.
HCL saw 10% growth in brand value over the past year to US$6.1 billion. The brand has signed 58 projects across various sectors, including telecommunications, life sciences, manufacturing, and technology. The brand announced that its revenue grew by 2.4% year on year to a total of US$10.2 billion.
Tech Mahindra ranks high in the IT services sector with a brand value growth of 45% over the last two years to a brand value of US$3.0 billion and an impressive growth of +1.9 points to 76.0 in the Brand Strength Index, rising to be the 7th strongest brand. The growth is a result of focussed brand building efforts. Tech Mahindra was also the only Indian organisation to receive the Terra Carta Seal by the Prince of Wales for its commitment to creating a sustainable future. By implementing projects that lay equal emphasis on people, planet, and profits, the organisation has been recognised for its social impact. Additionally, the business focus on digitalisation, cloud transformation, telecommunications, and other key digital requirements has consistently strengthened Tech Mahindra’s brand positioning.
David Haigh, chairman and CEO, Brand Finance, commented: “Tech Mahindra with its refreshed ‘NXT.NOW’ framework, places focus on digital transformation offerings for its global clients. Its brand value has grown by an impressive 45% in the last two years on the back of gaining ground in industry verticals while also ensuring that the brand retains its customer loyalty. We expect the company to continue developing the brand as it targets the next stage of growth by investing in innovation, new verticals, and geographies. Tech Mahindra has balanced the growth in brand strength and remained relevant with focused initiatives in the area of sustainability, diversity, efficient brand building, and cloud transformation”.
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 with an increase of +9.5 points to 69.9 since the pandemic hit. By branching out into cybersecurity services with a recent partnership with Securonix and Snowflake, LTI is able to provide their expertise in cloud-based services and prevent privacy and phishing threats.
Two strong new US-based entrants in the top 25
Although Indian brands have recorded higher growth among the incumbents, the two new entrants into the Brand Finance IT Services 25 2022 ranking both come from the US. Software engineering company EPAM Systems is the highest new entrant into the top 25, claiming 16th spot coming in just below Tech Mahindra. Valued at US$2.8 billion, EPAM undertook various activities to develop its portfolio in 2021, including media and metadata management, automotive digitalisation, and cloud modernisation. The brand successfully joined S&P 500 this year and increased its presence in Canada, Germany, Western Europe, and Latin America by ramping up hiring activities and acquiring high-performing companies in the region.
Fellow American brand Thoughtworks is another new entrant into the top 25 with a brand value of US$788 million. In 2021, the brand filed for its initial public offering (IPO) on the NASDAQ. The brand underwent a major rebranding with a new visual identity focused on innovation and a future outlook. The brand acquired two companies to gain traction in the European market: software development firm Gemini Solutions Inc and machine learning and data science consultancy Fourkind.