Tata Consultancy Services (TCS) is now the second most valuable information technology company globally ahead of US giant IBM, according to Brand Finance, a UK-based brand valuation consultancy firm.

Brand Finance report titled Brand Finance IT Services 25 2022 says TCS’ brand value grew 12% year-on-year and 24% since 2020 to $16.8 billion. Meanwhile, IBM’s brand value plunged 34% year-on-year and 50% since 2020 to $10.6 billion.

IBM’s brand value was impacted by the divestment of Kyndryl, which caused a loss of over $19 billion in revenue, the report says.

The average growth of Indian brands that have appeared in the ranking since 2020 stood at 51%, while the US brands have on average contracted by 7%, the report says.

This comes at a time when software services firms in India have outpaced their rivals from the United States in brand value growth over the past two years. This, according to the report, was aided by the Covid-19 pandemic which accelerated digital transformation across businesses.

TCS has not only successfully managed the challenges posed by the Covid-19 pandemic to continue developing its business operations around the world, but also maintained momentum with brand partnerships and sports sponsorships, the report says.

“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,” says David Haigh, chairman and chief executive offiver at Brand Finance.

Apart from actively sponsoring marathons across the globe in New York, Toronto, London, and Amsterdam, TCS will be the title sponsor of Jaguar Formula E team, which is a championship using electric vehicles exclusively, says the report.

Its Indian peer Infosys witnessed the fastest increase in brand value among all brands in the ranking this year. Following 52% year-on-year growth to $12.8 billion, the company is now the world’s third most valuable IT services brand.

“Infosys has shown impressive growth this year, making it the fastest-growing IT services brand of 2022... 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,” says Haigh.

India’s second largest IT services firm has also continued to build brand recognition globally by nurturing sports collaborations with ATP, Roland Garros, and the Australian Open, while also forging new ones with Madison Square Garden and media-heavyweights – The Economist, Financial Times, Bloomberg.

Apart from TCS and Infosys, there are four more Indian IT brands in the list -- Wipro (7th), HCL (8th), Tech Mahindra (15th), and LTI (22nd). All six Indian brands in the ranking feature among the top 10 fastest-growing IT Services brands over the course of 2020-2022, the report says.

Meanwhile, Accenture has retained the 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 start of the pandemic in 2020, the tech giant’s brand value has seen a 43% jump – standing out from among other brands in the US.

Follow us on Facebook, Twitter, YouTube & Instagram to never miss an update from Fortune India. To buy a copy, visit Amazon.