Big Change In TCS’ Operational Model With These 4 New Divisions: $50 Billion Revenue Is The Aim!

India’s IT major, Tata Consultancy Services (TCS) is planning to unveil a new operational structure soon.

This new operational structure will have four distinct business groups.

Why Would This Happen?

Basically, these four distinct business groups are being created to drive the next phase of growth for India’s largest software exporter as it started working on the next milestone of $50 billion in revenue, top executives say.

As per this new approach, the IT giant will order its entire business into groups termed as – acquisition, relationship incubation, enterprise growth and business transformation from the start of April.

This way, the IT service provider is presenting an industry-first model.

Basically, this model moves away from the “traditional three-dimension ( framework) of geography, vertical or services,” with a razor-sharp focus on clients, their changing digital needs and faster delivery times, according to the sources.

Further adding, “ The operating model will be aligned to the customer journey at every step, leaders who have been groomed ( for this model) will lead these new groups,”.

TCS New Business Structure 

The current group head of manufacturing and utilities, Susheel Vasudevan will lead the relationship incubation group.

On the other hand, Krishnan Ramanujam who is president and head of business and technology services, will take care of enterprise growth.

Debashis Ghosh, who at present is the president for life sciences, healthcare, energy and public services will take charge of  Business transformation for long term and large clients. 

At the same time, Kamal Bhadada, who is President, Communications, Media and Information Services Business Unit at TCS will head a group focused on new business models.

Sources said that “The leaders of all four groups will report directly to CEO Rajesh Gopinathan who is leading the transformation ,”.

Not The First Time

Gopinathan took charge of TCS during 2017 and had clocked revenue of $18.5 billion for the calendar year.

Presently, TCS reports its businesses by industry verticals such as retail & CPG, banking financial services, communication among others.

While talking about this change, sources said, “Existing models have reached a level of maturity that allowed us to free up management bandwidth in new opportunity areas,”.

Further adding that “we can’t comment on internal business plans or strategies.”

This type of business restructuring is not happening for the first time as the company created 23 smaller units of about $250 million each during 2008.

Which has helped in boosting growth from $6 billion in the fiscal year 2008-09 to $19 billion by 2018-19 financial year.