TCS to Make Tweaks to Structure as Required, says Incoming CEO K Krithivasan
Tata Consultancy Services (TCS), the leading global IT services provider, is set to undergo some changes in its structure following the appointment of a new CEO, K Krithivasan, who will take over the reins on June 1. However, the incoming CEO has assured analysts that he will not be making any hasty changes to the company’s current structure. Krithivasan has revealed that the current structure was put in place after a lot of internal discussions, and therefore there is no rush to make any changes.
Krithivasan has emphasized that any tweaks to the company’s structure will be made only after meeting with customers and associates. This approach is likely to ensure that TCS maintains its reputation for delivering high-quality IT services to its clients while also ensuring that the company’s internal structure remains efficient and effective.
The current structure, which was introduced last year by outgoing CEO Rajesh Gopinathan, divided clients into four different business groups based on the stage of their journey with the company, rather than verticals. This change was designed to make it easier for clients to work with TCS, regardless of the industry they operate in.
However, sources have previously suggested that not all senior leadership members were satisfied with the restructuring. It has been reported that Krithivasan, who was previously the global head for the BFSI (Banking, Financial Services and Insurance) vertical, kept his department out of the restructuring. This move could have been interpreted as a sign of dissatisfaction with the new structure.
Nonetheless, Krithivasan’s appointment as CEO suggests that he has the backing of the board and senior leadership. Prior to his promotion, Krithivasan was responsible for the largest vertical of TCS, which generates 35-40% of the company’s revenue. In his new role, he will focus on becoming familiar with the non-BFSI side of the business.
Krithivasan’s measured approach to making changes to TCS’ structure is a sensible one. The company has a strong track record of delivering results and has built a reputation for being a reliable partner for its clients. By taking the time to meet with customers and associates and carefully considering any changes to the company’s structure, Krithivasan is likely to ensure that TCS remains at the forefront of the IT services industry.