Tata Consultancy Services (TCS) is now the second most valuable information technology company globally ahead of US giant IBM, according to Brand Finance, a UK-based brand valuation consultancy firm. According to the report, TCS’ brand value grew 12% year-on-year and 24% since 2020 to $16.8 billion. Meanwhile, IBM’s brand value plunged 34% year-on-year and 50% since 2020 to $10.6 billion.
IBM’s brand value was impacted by the divestment of Kyndryl, which caused a loss of over $19 billion in revenue, the report says. The average growth of Indian brands that have appeared in the ranking since 2020 stood at 51%, while the US brands have on average contracted by 7%, the report says.
This comes at a time when software services firms in India have outpaced their rivals from the United States in brand value growth over the past two years. This, according to the report, was aided by the Covid-19 pandemic which accelerated digital transformation across businesses.
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, the report says. Its Indian peer Infosys witnessed the fastest increase in brand value among all brands in the ranking this year. Following 52% year-on-year growth to $12.8 billion, the company is now the world’s third most valuable IT services brand.
