TCS fastest growing brand in IT services industry

25 February 2015 Consultancy.uk

Tata Consultancy Services, India’s leading IT services company, has been named the globe’s fastest growing brand in the IT services industry. According to research firm Brand Finance the brand value of the IT firm currently stands at $8.7 billion, more than $6 billion higher than five years ago.

Initially founded as an internal unit of Indian conglomerate Tata in 1968, Tata Consultancy Services (TCS) has since grown to one of the 10 largest IT services firms of the globe. On the back of dozens of acquisitions, global expansion and organic growth the firm in 2011 for the first time broke through the ‘magical’ barrier of over $10 billion in revenues, firmly establishing itself as a top 20 international player. Following spell of (strong) back-to-back growth, TCS currently turns over $13.4 billion, and employs a workforce of more than 318,000 in 46 countries.

TATA Consultancy Services

For many in the business world TCS’s surge has not remain unnoticed, and the firm finds itself increasingly top of mind with executives seeking IT services and/or outsourcing support. Yet sheer size does not necessarily translate to branding, with several well-known examples around where brand value is off market capitalisation, or vice versa. In the case of TCS, the company a number of years ago consciously set the goal to actively manage its brand in the marketplace, in order to compete with and differentiate itself from established US- and European-based rivals such as Cognizant, CSC, Atos, Capgemini and CGI. According to a recently released study by Brand Finance, the bottom-line result can be called remarkable. In 2010 the TCS brand – the dollar value of its reputation, image and intellectual property – was valued at $2.3 billion, five years down the line the value has grown to $8.7 billion. This 271% jump in brand value makes TCS the fastest growing brand in the IT services landscape, ousting its key competitors in terms of momentum, and lagging just the globe’s absolute exceptions such as Twitter, with around +300% the fastest grower across all sectors.

“Its [TCS] focus on putting the customer first and becoming a trusted business partner over the long term have held the brand in good stead. Not only has TCS become one of the strongest brands in its sector, it has also seen the largest increase in brand value – adding over $6 billion to the value of its brand over the past five years”, comments David Haigh, CEO of Brand Finance.

Brand Value of Tata Consultancy Services

The key question is: how did TCS manage do it? Natarajan Chandrasekaran, CEO of TCS, not surprisingly points at the firm’s “industry leadership in customer satisfaction”, as well as highlighting the strong business performance and talented employee base as the foremost drivers. He in addition says that the firm has benefited from “several strategic initiatives taken to boost the brand”, relating to the effectiveness of its overall branding strategy. In recent years, TCS’s branding, public relations, sponsorships, employer brand and community programmes have been recognised with 50+ awards worldwide.

A number of key initiatives stand out. To create large-scale awareness the firm among others sponsored major international marathons in cities such as New York, Amsterdam, Berlin, Singapore and Mumbai, as well launched a popular app during the FIFA World Cup (‘TCS social soccer app*’) and at a more regional/local level boosted its presence in media. From a more client perspective, the TCS brand was augmented through further investments in though leadership, and significant upgrades in its presence at leading industry and leadership forums worldwide, such as the World Economic Forum at Davos.

Natarajan Chandrasekaran - TATA Consultancy Services

Chandrasekaran says the firm is proud of its surge up the branding tables, yet looking ahead emphasizes that the IT services consultancy has set its eyes on further growth. “We will continue to invest towards brand leadership in every country and community we operate in.”

* The TCS social soccer app provided social media sentiment analysis of the 2014 FIFA Football Cup.

×

PA Consulting results reveal record 14% revenue growth

17 April 2019 Consultancy.uk

Global professional services firm PA Consulting has reported another year of strong growth, outpacing the global consulting market significantly over the duration of 2018. PA’s revenue boomed by 14%, passing £455.8 million over the course of the year.

Founded in 1943, by Englishmen Ernest Butten, Tom Kirkham and David Seymour, the firm once known as Personnel Administration has since gone on to become one of the largest consulting firms in the world. PA Consulting Group, as it is now known, has over 2,600 professionals and a global presence spanning 18 countries. While turnover took a decade to recover from a rocky spell after the global financial crisis, PA Consulting is now firmly on the upward incline.

PA has booked strong growth in recent years, following its securing of private equity investment from the Carlyle Group in 2015. While the first full year of results following that move were slightly muted, due in part to the altering of how PA measured its results, the decision has clearly paid dividends since. Revenues jumped by 6% in 2017, hitting an all-time high of £400 million in the process.

Annual consulting revenues of PA Consulting versus UK market

Now, in the latest chapter of the firm’s rapid turnaround, the innovation and transformation consultancy has revealed things only got better in 2018. A set of record results released in April have confirmed that fee income rocketed up by 14% over the course of the prior 12 months, hitting £455.8 million. Considering the UK’s consulting market saw growth slow for the second year running (just 5.6%), PA’s performance is even more pronounced, especially in its first year of full results since influential Chair Marcus Agius stood down. 

The firm is also outpacing the global consulting market. Analytics firm Statista estimates that the consulting market expanded by 4.08% in 2018. As a result of such bullish demand, PA Consulting has also bolstered its staffing, boosting its consulting team’s headcount by 10% in the space of 12 months. 

PA’s team was further strengthened with its continued acquisition campaign, which brought three new firms into the fold during 2018. Boston-based innovation company Essential Design, specialist digital service design firm We Are Friday and London-based digital insight and strategy consultancy Sparkler all became part of PA over the course of the year. PA has also announced plans to recruit 400 professionals for its new digital centre in Belfast. 

‘Not traditional’

In terms of client work, in the UK PA supported Skipping Rocks Lab to create an edible alternative to single use plastic drink packaging, and worked on a notable restructuring project at disability charity Scope. Further afield, PA helped Norwegian authorities deliver their citizen-facing digital services, while in the US and India, PA partnered with Virgin Hyperloop One to build the first new mode of transport in a century, one that hopes to revolutionise travel. It even worked with United Nations to identify the technologies most likely to contribute to the achievement of the organization's Sustainable Development Goals.

Commenting on the year’s performance, Alan Middleton, PA Consulting CEO, said, “We’re not a traditional consulting firm and we think this is key to our ongoing success and why 98% of our clients recommend us… Our people are strategists, technologists, digital experts, consultants, designers, scientists and engineers – all of whom bring real-world experience, and apply it at pace. We offer the innovation, design, digital and transformation skills that our clients need to change, fast. There’s a sense of optimism behind our purpose. And it’s a feeling that inspires our people as well as our clients.”

The existing staff of PA also enjoyed a bumper year, as it was revealed that a refinancing manoeuver at the firm was expected to land over 1,000 employee shareholders a significant pay-out. The firm’s debt, which includes vendor loan notes put in place when Carlyle purchased the firm, is set to be refinanced in a deal worth £350 million.