In the latest Brand Finance IT Services 25 list for 2024, Accenture and Tata Consultancy Services (TCS) stand out with impressive brand value growth. Accenture reached a substantial $40.5 billion, driven by its promising work in the generative AI trend. On the other hand, TCS achieved a brand value of $19.2 billion, adding $2 billion year-on-year through consistent brand and marketing investments.
TCS’s Strategic Marketing Investments:
TCS strategically invested in brand and marketing activities, including notable sponsorships such as Formula E and a partnership with Jaguar. These initiatives not only gave TCS visibility on key audiences but also served as a platform to showcase its capabilities, enhancing its reputation and consideration in the market.
Wipro Faces Brand Value Erosion:
Wipro, however, faced a decline in brand value by 7.6 percent year-on-year. Challenges in turning around the business in a challenging macro environment and the departure of over 10 top executives in 2023 contributed to this erosion.
HCLTech’s Rapid Growth and Sustainability Recognition:
HCLTech experienced the fastest growth among the top 10 companies, boasting a 16 percent year-on-year increase with a brand value of $6.5 billion. The growth was attributed to significant sponsorship deals with sports brands like New York Giants and New York Jets. CEO C Vijayakumar also earned recognition as a sustainability champion in the IT services sector.
Infosys Emerges as Five-Year Growth Leader:
Over a five-year period, Infosys emerged as the growth leader, reaching a brand value of $14.2 billion with a 9.3 percent compound annual growth rate (CAGR). CEO Salil Parekh’s leadership played a crucial role in delivering consistent brand value growth amid evolving market conditions.
Challenges and Opportunities for IT Services Brands:
While IT services brands thrived during the digital transformation boom amid the pandemic, the current slowdown, marked by macroeconomic challenges, inflation, and geopolitical tensions, has prompted a reevaluation of strategies. Despite short-term cautious spending, there is optimism about the substantial long-term demand for AI, presenting a crucial opportunity for IT services brands to adapt and differentiate themselves.
Bharat Leads in Brand Value Creation:
On a global scale, India took the lead, contributing 32.57 percent to the brand value created, surpassing countries like Ireland, the US, Japan, and France. Additionally, India ranked second in the number of brands, closely following the US. This signifies Bharat’s significant presence and impact in the IT services sector on the global stage.
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