TCS CEO exit: ‘Reason is internal discomfort with reorganisation’

Research teams from Everest Group have picked up both internal discomfort with the reorganisation as well as external confusion.

Published: 21st March 2023 09:36 AM  |   Last Updated: 21st March 2023 09:36 AM   |  A+A-

TCS office building

Image used for representational purpose. (File Photo | PTI)

Express News Service

BENGALURU:  With four years still left before his term ends, TCS CEO and MD Rajesh Gopinathan last week announced his resignation from the country’s largest IT services behemoth. Though the next day after his resignation, at a press briefing, he said it is better to leave when everything is good and that  ‘if not now, will there be a better time’,  analysts said there is more to this than meets the eye.

Research teams from Everest Group have picked up both internal discomfort with the reorganisation as well as external confusion. In April 2022, TCS launched a new operational structure under, which four business groups - acquisition, relationship incubation, enterprise growth and business transformation - were created. “Under the new structure, it is hard to find who is in charge and in some instances, with too many cooks in the kitchen, this is quite unlike the normal TCS interactions that are usually disciplined and on target,” said Peter Bendor- Samuel, CEO of Everest Group.

That said, TCS posted good numbers and it seems out of character for them to make precipitous changes, he added. Gopinathan, who led the IT services company as CEO for the past six years, added over $10 billion in incremental revenues and over USD 70 billion increase in market capitalisation.

His exit also comes at a time when there is slow economic growth, geopolitical tensions and increased concerns about IT spends.“Given TCS’ size, order book and exposure to long duration orders, and portfolio, it is well positioned to withstand the weakening macro environment and ride on the anticipated industry growth,” said Motilal Oswal Financial Services.

In recent months, both Tech Mahindra and Cognizant appointed new CEOs.  When asked about it, an analyst said these changes come at a time of industry inflection. “The IT industry is moving from the first phase of digital transformation with its post-pandemic final kick to a phase of operating in a mature digital world.,” Samuel said.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp