Rajesh Gopinathan steps down as the CEO of TCS
After being a TCS employee for 22 years, Rajesh Gopinathan, the then TCS CEO and Managing Director (CEO & MD) quit to “pursue other interests” after the connection ended. Last year, TCS reappointed Rajesh Gopinathan as CEO and that is why the IT world has been shaken by the decision.
Rajesh Gopinathan was the driving force behind TCS and during this timeframe, TCS’s share of the IT services market had increased to 160%. His abrupt departure has equally surprised and concerned the IT sector.
The resignation of Rajesh Gopinathan will take effect on September 15, 2023. Before then, K Krithivasan, who will be appointed as the new MD & CEO, will be trained alongside Rajesh Gopinath for the new role. K Krithivasan held the positions of President and Global Head of Banking, Financial Services, and Insurance (BFSI) Business Group at TCS. K Krithivasan will be appointed as MD & CEO in the next financial year.
What will Kritivasan’s advantage be?
Kritivasan’s knowledge and expertise in the BFSI space in addition with the hiring of a TCS team leader who has worked closely with Rajesh Gopinath for over two decades should help TCS to go forward in the long run. For the last few quarters, the firm has produced excellent revenue growth, and deal pipeline, as well as shown margin improvement. TCS’s revenue/EBITDA/PAT is expected to expand at a rate of 13%/14%/14% between 2022 and 2025, according to equity analysts.
On TCS Chairman N. Chandrasekaran’s resignation:
“For the past 25 years, I’ve had the pleasure of working with Rajesh. Rajesh has given outstanding leadership as MD and CEO over the last six years to assist customers accelerate their transformation via large investments in cloud and automation, establishing the groundwork for TCS’s next phase of development. “
Rajesh Gopinathan on his decision to leave TCS:
“I’ve had a fantastic 22-year career with TCS. It has been a joy to collaborate with the Chairman, who has been at my side throughout the whole process. It has been incredibly rewarding to witness more than $10 billion in sales and $70 billion in market capitalization during the last six years of heading this organization.”
Given Gopinathan’s track record and lengthy relationship with TCS, the decision comes as a complete surprise. However, TCS can be confident of one factor: they have one of the strongest leadership teams. As a result, the transfer to Krithivasan will be as easy as Gopinathan succeeding Chandrasekaran as the chairman of the Tata Group.
