TCS becomes second most valuable brand in IT services sector globally

27 Jan 2022 , 08:55 AM

IT-giant, Tata Consultancy Services (TCS) has become the second most valuable brand in the IT services sector globally, according to Brand Finance, the world’s leading brand valuation firm. On Thursday, TCS stock will be in focus after the achievement.

As per the Brand Finance 2022 Global 500 IT Services Ranking report, TCS grew its brand value by $1.844 billion (12.5%) to $16.786 billion over the last 12 months. This growth is attributed to the company’s investments in its brand and its employees, customer equity and strong financial performance.

“The ranking is a landmark milestone for us and a validation of our increased market relevance and focus on innovation and transformation of our clients, their customers, and the larger community. This recognition is also a testimony to our employees, who are our true brand custodians, and the belief with which they have rallied for us over the years,” said Rajashree R, CMO, TCS.

TCS CMO added, “2021 was a historic year for Brand TCS as we launched our new brand positioning – Building on belief which captures our aspirations and convictions. With our differentiated ‘customer focused’ strategy, superior execution, investments in building newer capabilities and sustained focus on research and innovation over the last decade, we are indeed well-positioned to capitalize on the multi-year technology transformation opportunities that lie ahead.”

David Haigh, Chief Executive Officer and Chairman, Brand Finance, said: “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 sponsorship platforms such as TCS London Marathon, TCS Waterfront Marathon in Canada, but also new sports such as golf and a move into Formula-E with the Jaguar TCS Racing Team.”

TCS has made consistent, long-term efforts over the past decade to increase its brand value, including investing in major brand sponsorships. In 2021 alone it added the TCS London Marathon and the TCS Toronto Waterfront Marathon to its roster of 11 running sponsorships, announced its partnership for the Jaguar TCS racing team in Formula-E motorsports and forayed into golf by partnering with the Dutch Open.

Further, the company has also made significant investments in its brand by developing its Building on Belief brand positioning to articulate its mission and relationship with customers as it embarks on its next decade of transformation-led growth. Its employer brand and reputation for employee care also contributed to its enhanced ranking.

The Tata Group-backed company’s sustained investments in building deep capabilities on new technologies, research and innovation, intellectual property, and customer-specific contextual knowledge have made it the preferred growth and transformation partner to leading corporations across the world. Strong revenue growth in 2021 saw TCS cross an important milestone, hitting $25 billion in revenue for the first time, with an industry-leading operating profit margin of over 25%.