No change in strategy: New TCS CEO
BENGALURU: A day after announcing a major leadership change in the country’s largest IT services company Tata Consultancy Services, both Rajesh Gopinathan, who is resigning from his CEO and MD post and CEO-designate K Krithivasan came together on Friday to face media.
Amid speculation over the possible reasons for incumbent Gopinathan’s exit from the company, the management tried to allay fears of any major ‘upheaval’ in the company. There would not be a change in strategy and the focus would be to continue the core set of beliefs and principles and fine-tune them going forward, said Krithivasan as he and his predecessor resorted to occasional cracking of jokes to ease the tension.
Krithivasan, who is based in Chennai, on a lighter note, said moving to Mumbai from Chennai was tougher than becoming CEO. Though Gopinathan said he has no clue what he would do after his stint with TCS, he said he never allowed himself to think about something else while sitting as CEO. Gopinathan, who hasn’t written his resume after campus, said TCS will be an integral part of his life. “I can’t tell you how happy and light I feel. In the last 48 hours, it is liberating.” He said he wants to make sure that the transition is smooth.
The new CEO-designate, who has been with TCS for about 35 years, holds a Bachelor’s Degree in Mechanical Engineering from the University of Madras and a Master’s Degree in Industrial and Management Engineering from IIT Kanpur.
Stressing on customers and employees who drive the company’s growth, Krithivasan also said every change in the market provides new opportunities. “We will continue to focus on core principles and fine-tune as we go along.”
He added as the market situation changes, they would recalibrate what they had to do. Meanwhile, experts said Gopinathan’s departure from TCS is surprising, as he has led the company for only six years and was expected to continue for the long term given his age (52 years). In its report on TCS, Motilal Oswal Financial Services said while the firm’s growth has trailed peers like Infosys recently, it has handled external pressures, including a transition to digital delivery and the Covid impact relatively well despite its size.
Experts said that given Krithi’s long tenure at TCS, the firm would maintain its operational performance intact. “He oversees the largest industry unit at the company (32% of FY22 revenues) and has experience across roles, including delivery, CRM, program management and sales, which should help TCS maintain its track record of a seamless transition. We do not expect meaningful leadership attrition due to this change,” MOFSL said.