India’s largest software services company, Tata Consultancy Services (TCS), is undergoing a change in leadership as Rajesh Gopinathan steps down after six years as CEO.
K Krithivasan will take over as the new Chief Executive and Managing Director on June 1. Gopinathan expressed his gratitude to colleagues and wished Krithivasan success in a farewell note to employees.
Gopinathan Steps Down as TCS CEO; K Krithivasan To Take Over
Krithivasan has been with TCS for over 33 years and has held various leadership roles in delivery, customer relationship management, large program management, and sales. In his most recent role, he successfully led TCS’ largest banking and financial services vertical. Gopinathan expressed his confidence in Krithivasan, stating his best wishes as he takes on the responsibility of leading TCS towards its goal of achieving $50 billion in revenue.
During Gopinathan’s tenure, TCS experienced significant growth, with revenue increasing from $17.5 billion in March 2017 to $27.9 billion in March 2023. The company’s market capitalization also almost doubled to $143 billion. However, the change in leadership comes at a challenging time for the IT services industry, with a slowdown in hiring, a lull in demand, inflation in Europe, and shifting confidence in the US banking ecosystem, all amid the ongoing Ukraine conflict.
Krithivasan has emphasized the importance of staying close to customers, remaining relevant, and offering new solutions, especially during uncertain times. He will face the task of managing a few senior-level exits within the coming year, including the retirement of Chief Technology Officer K Ananth Krishnan and Chief Operating Officer NG Subramaniam.
Gopinathan, who has been with TCS for 22 years, took over as CEO in 2017 after his predecessor, N Chandrasekaran, became Chairman of Tata Sons. He was reappointed for a five-year term ending in February 2027. With Krithivasan’s appointment, TCS aims to navigate the evolving IT landscape and continue its growth trajectory under new leadership.
Rajesh Gopinathan’s Unexpected Resignation
The move is not expected as he has been with the company for over 22 years.
In response to his request, the board of directors TCS considered his request to be relieved of his positions, and accepted it.
Further, they have nominated K Krithivasan CEO-designate with effect from March 16, 2023.
Gopinathan plans to continue with the company till September 15, 2023, in order to provide transition and support to his successor.
TCS added over $10 billion in incremental revenues and over a $70 billion increase in market capitalisation during his six years as CEO.
