A new study has placed TCS and Infosys as the second and third most valuable IT services companies in the world, worth Rs 1,25,935 crore ($16.8 billion) and Rs 95,859 crore ($12.8 billion). These are the highest ranks the Indian tech giants have ever achieved, though they have featured in the global top 10 for a decade.
The TCS brand was valued at $2.3 billion in 2010; it has grown a staggering 730 per cent in the dozen years since. Infosys also emerged as the fastest growing brand in 2022, increasing 52 per cent in value over 2021.
Accenture, the Dublin-headquartered multinational that has 250,000 employees in India, tops the 2022 list at Rs 2,71,513 crore ($36.2 billion).
Wipro, HCL, Tech Mahindra, and Larsen & Toubro Infotech have also made it to the global top 25 IT services brands measured by Brand Finance, a London-based chartered accountancy firm.
The digital transformation of the global economy accelerated by the Covid pandemic has helped Indian tech companies. Their brand values have grown 51 per cent on average over the last two years, while US brands have shrunk by 7 per cent. IBM Consulting, an earlier top brand, has fallen out of the top 3 for the first time.
How TCS aced the race
“You have to accept two things while setting up any company under the Tata banner – the group’s Code of Conduct and a pledge to protect the brand. It’s sacrosanct and a long-term effort,” a senior Tata Group official who has previously worked at TCS told TOI+ on the condition of anonymity.
Brand value is a key financial asset essential for mergers and acquisitions. “Apart from M&A, brand value comes of use in any exercise to do with the corporate identity, such as promotions and marketing,” the Tata Group official added.
In a mail to TOI+, Brand Finance's Lorenzo Coruzzi explained, “We look at more than 20 metrics across three pillars to derive the index: brand investment, which are activities supporting the future strength of the brand; brand equity, which are real current perceptions sourced from our market research and secondary research; and brand performance, which are brand-related performance measures such as revenues, forecast outlook and ability to execute.”
Among the measures that helped TCS strengthen its brand in its core markets in the US and Europe were sponsorship of marathons and other running events in 12 cities around the world including New York, London, Amsterdam, and Sydney.
The Indian stock markets have also rewarded TCS and Infosys over the years. The two stocks, which are among the 30 that make up the sensex, had a combined market capitalisation of Rs 21 lakh core ($273 billion) on the BSE at Thursday closing.
