IT services companies from India have outpaced their competitors from the US in brand value growth over the past two years of digital transformation in the global economy, accelerated by the Covid-19 pandemic.
The average growth of Indian brands that have appeared in the Brand Finance IT Services 25 2022 ranking since 2020 is an impressive 51%, while the US brands have on average contracted by -7%.
Every year, Brand Finance puts 5 000 of the biggest brands to the test, and publishes nearly 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest IT services brands are included in the annual Brand Finance IT Services 25 2022.
A global turn to remote working for professional services and an accelerated digitalisation trend across the global economy have facilitated expansion of IT services hubs within India. With strong IT services brands and a large population of people with digital skills, India will continue to play a major role in developing infrastructure for artificial intelligence, data analytics and Internet of Things (IoT).
Although the majority of the US brands in the Brand Finance IT Services 25 2022 ranking have recorded low or negative growth over the past two years, not all is doom and gloom. The US still accounts for most brand value in the ranking – 47% compared to India’s 31%, Accenture remains the top brand bucking the national trend with 43% brand value growth over the past two years, and the US has seen two new entrants this year to the top 25.
Savio D’Souza, valuation director of Brand Finance, comments: “Despite the global pandemic and its inevitable impact on businesses, the IT services and technology sector has proven that it is equipped to perform with successful results.
“By revaluating the market and gaining a clear focus on cloud services, technology consulting, machine learning, and artificial intelligence, the IT services brands – from India and around the world – will continue to flourish and innovate in the face of challenges posed by pandemic-related shortages and restrictions.:”
Accenture has retained the sector’s most valuable brand title for the fourth consecutive year with its brand value increasing by 39% over the past year to $36,2-billion. Since the beginning of the pandemic in 2020, the tech giant’s brand value has seen a 43% increase – standing out from among other brands in the US.
IBM’s brand value now stands at $10,6-billion with a 34% decrease from the previous year, and a 50% 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.
As IBM has gone down to fourth rank, Tata Consultancy Services has risen up to second in the Brand Finance IT Services 25 2022 ranking, following 12% growth year on year and 24% since 2020 to a brand value of $16,8-billion.
David Haigh, chairman and CEO of Brand Finance, comments: “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.”
Infosys has seen the fastest increase in brand value from among all brands in the ranking this year. Following 52% growth to $12,8-billion, it is now the world’s third most valuable IT services brand. Over the past two years of the Covid-19 pandemic, the change is even more impressive with the brand recording an 80% gain.
“Infosys has shown impressive growth this year, making it the fastest-growing IT services brand of 2022, thanks to its commitment to clients and focus on innovation,” says Haigh. “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% 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.”
All six Indian brands in the Brand Finance IT Services 25 2022 ranking feature among the top 10 fastest-growing IT Services brands over the course of 2020-2022. Following TCS and Infosys there are four more Indian brands now firmly established among the global elite: Wipro (seventh), HCL (eighth), Tech Mahindra (15th), and LTI (22nd).
Although Indian brands have recorded higher growth among the incumbents, the two new entrants into the Brand Finance IT Services 25 2022 ranking both come from the US.
Software engineering company EPAM Systems is the highest new entrant into the top 25, claiming 16th spot coming in just below Tech Mahindra. Valued at $2,8-billion, EPAM undertook various activities to develop its portfolio in 2021, including media and metadata management, automotive digitalisation, and cloud modernisation.
Thoughtworks is another new US entrant into the top 25 with a brand value of $788-million.