Rajesh Gopinathan, CEO, TCS
India’s largest IT services provider Tata Consultancy Services' (TCS) brand value grew by $1.4 billion in 2020, the highest among IT services firms globally, according to Brand Finance 2021 report.
The company’s brand value stood at $14,924 million in 2021 as opposed to $13,499 million in 2020.
According to the Brand Finance report, the growth on brand value of $1.4 billion is the highest absolute growth among the 25 firms assessed in the IT services space. “…that too in a challenging year when the brand value of IT services companies collectively dropped by 3 percent. Further, at 10 percent growth over the prior year, TCS has outperformed its peers in the Top 3 category,” the report said.
The world’s leading brand valuation firm also ranked TCS at the third position among the top 25 IT companies globally.
Though the report did not explicitly list the brands that occupied the first two places, firms in IT services space that have a higher brand value than TCS were US-based IBM at $27,428 million and Accenture at $26,028 million. IBM also has a huge focus on cloud through its Red Hat acquisition.
In addition, TCS Chief Executive Officer Rajesh Gopinathan was ranked fifth in the Brand Guardianship Index 2021, which lists the top 100 CEO globally. Mukesh Ambani followed him taking the sixth position, while Ajay Banga of Mastercard topped the list. Salil Parekh, CEO, Infosys was ranked at the 17th spot.
“With what was a very tough 2020, led so ably by its CEO Rajesh Gopinathan, TCS has excelled itself once again. Along with 10 percent 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," said David Haigh, Chief Executive Officer, Brand Finance, in a statement.
According to the report, this was possible because of the company’s ability to quickly adapt to new ways of working through the launch of its Secure Borderless Workspaces, its remote working platform and its robust financial, customer and market performance amid the pandemic.
Onn January 25, 2021, the company became the most valuable IT firm in the world in market capitalisation surpassing Accenture. In the process, it also became the most valuable Indian firm in the country, overtaking Reliance Industries.
Apart from TCS, the other key brands that featured in the Brand Finance report under Global 500 include Accenture (ranked 60). Bengaluru-based Infosys
was ranked at 212 in brand value at $8,402 million, up 18.6 percent from $7,087 million last year. Cognizant’s brand value dipped from the rank of 219 in 2020 to 231. Other Indian IT firms HCL
was ranked 353, up from 425 in 2020 and Wipro
’s rank rose to 457 in 2021 from 493 last year.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.