Indian IT service giants grew by 51% since the pandemic: Brand Finance report

The India’s $190 billion IT service industry has shown phenomenal growth trajectory with the brand value of top IT service providers having grown by 51 per cent from 2020-22 as compared to its US competitors whose brand value has contracted by 7 per cent during the period, a report by global brand valuation consultancy, Brand Finance stated.

The report mentions that India’s IT service firms have leveraged the pandemic opportunity better than its global counterparts having diversified its services and expansion to new geographies.

Notably, Tata Consultancy Services (TCS), and its home-grown rival Infosys have taken over the position of second and third-most valuable IT services company globally, pushing US tech behemoth, IBM to fourth place. Accenture, meanwhile, retained the position of most valuable IT services brand globally with a brand value of $36.2 billion.   TCS and Infosys' valuation stood at $16.8 billion and $12.8 billion, respectively. IBM’s brand value now stands at $10.6 billion with a 34 per cent decrease from the previous year, and a 50 per cent 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, the report noted. However, IBM is likely to witness a sharp recovery on the back of focus on its core competencies.  TCS and Infosys shine during the pandemic

TCS and Infosys have grown at 24 per cent and 52 per cent, respectively from 2020-22. Interestingly, TCS’s long-standing commitments to sponsor sporting events, including marathons, has worked in its favour, whereas Infosys is riding high on strong quarterly results with a huge digitisation push.

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.

This partnership between Jaguar and TCS involves research and data analytics around automotive engineering and sustainable energy with an aim for low carbon emission, the report stated.

 

 

According to David Haigh, chairman and CEO, Brand Finance, TCS' strong positioning has enabled its success.

“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,” Haigh added.   Similarly, Bengaluru-headquartered Infosys grew fastest than any of its rivals at a staggering 51 per cent rate with the brand being able to evolve its services in line with the new economy and client requirements.   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, as per the report.

“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 per cent 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, ” Haigh said.    Indian firms demonstrate strong potential

The various other IT services companies, including HCL Technologies, Wipro, L&T Infotech, Tech Mahindra have also grown during the pandemic, improving its rankings.

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 $6.3 billion with an increase of 48 per cent 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 $580 million.   HCL saw 10 per cent growth in brand value over the past year to $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 per cent year on year to a total of $10.2 billion.

Tech Mahindra ranks high in the IT services sector with a brand value growth of 45 per cent over the last two years to a brand value of $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 report stated.