TCS brand value grows faster than even world’s top tech firm IBM, Accenture and HPE

New Delhi, Mar 16: Tata Consultancy Services (TCS) has marched ahead even some of the world’s top technology firms like IBM, Accenture and HPE in IT Service sector this year, adding $1.3 billion of value to its brand, which is now worth $10.4 billion, said a report. TCS rose 14% in brand value compared to 1% of IBM and negative growth of 4% and 65% of Accenture and HPE respectively.
According to Brand Finance, an UK based independent brand valuation and strategy consultancy firm, TCS’s growth contrasts with stagnation in the sector, which saw the combined value of the 13 brands in both 2017 and 2018’s rankings slip 1% to $94.4 billion. TCS’s 14% rise in brand value is in stark contrast to many of its peers, including Cognizant (-10%), Infosys (-3%), Fujitsu (-14%), Wipro (-7%) and Xerox (-33%), whose brands have either stagnated or lost value.
The report attributes TCS growth to its digital services which includes Cloud, Cybersecurity, IoT, Digital Interactive, Enterprise Intelligent Automation, Enterprise Application Services, Consulting & Service Integration and Cognitive Business Operations among others. Digital services saw 40% increase in year-on-year revenues in the third quarter to December 2017 with more than 150 contract wins, including the division’s first $50 million-plus client. An additional 12,543 employees were recruited, taking the total to 390,880. Despite its strong business performance, TCS’ Brand Strength Index (BSI) score and brand rating stayed at 78 and AA+, said report.
“Spending on traditional IT outsourcing has reached a natural limit and companies have been slow to reposition around value-added services with a few exceptions. TCS has done a great job over the past 4-5 years shifting perceptions, positioning themselves as an international company at the forefront of technological developments, which is a fair reflection as that is where they generate the majority of revenues and where they are expanding,” said Savio D’Souza, Director at Brand Finance.