Rajesh Gopinathan has stepped down as the Managing Director and Chief Executive Officer (CEO) of India’s largest IT services firm Tata Consultancy Services. The company has appointed K Krithivasan as the new CEO. Gopinathan will continue with TCS till September 15, 2023, to provide support to his successor.
Gopinathan said, “I have thoroughly enjoyed my exciting 22-year tenure at TCS. It has been a pleasure working closely with Chandra, who has mentored me through this entire period. The last six years of leading this iconic organization have been most enriching and fulfilling, adding over $10 billion in incremental revenues and over $70 billion increase in market capitalisation.”
Who is K Krithivasan?
Krithivasan is not a new face within the company. He joined TCS in 1989. Prior to becoming the CEO, he was serving as the President and Global Head of the Banking, Financial Services, and Insurance (BFSI) Business Unit at TCS.
Krithi was responsible for planning and executing growth strategies, enhancing customer mindshare and market positioning, and improving financial performance. Showcasing her commitment towards work, he has helped key clients with digital transformation, change management cycle acceleration, achieving value beyond cost optimization, and establishing IT program governance.
While serving in TCS, he has held strategic leadership roles in customer relationship management, delivery, large program management, and sales.
The newly appointed CEO is also a member of the Board of Directors of TCS Ireland, TCS Iberoamerica, and the supervisory board of TCS Technology Solutions AG.
He has done Bachelor’s in the field of Mechanical Engineering from the University of Madras and completed Master’s in industrial and Management Engineering from the Indian Institute of Technology (IIT) Kanpur.
Chairman’s Words on Gopinath’s Exit
“I have had the pleasure of working with Rajesh for the past 25 years. During this period, Rajesh has always distinguished himself with exemplary performance in various roles, including his former role as the Chief Financial Officer. Over the last 6 years, Rajesh has provided strong leadership as the MD & CEO and has laid the foundation for the next phase of TCS’ growth with significant investments in cloud, agile and automation to help clients accelerate their transformation. I am deeply appreciative of Rajesh’s enormous contribution to TCS. I wish him the very best for the future,” said Natarajan Chandrasekaran.
Contribution of Rajesh Gopinathan Can’t Go Unnoticed
Rajesh Goipnathan took over from N Chandrasekaran as Chief Executive Officer in 2017 when the Indian IT industry was facing its toughest challenge of adapting to advanced digital technologies. During Rajesh’s tenure, Tata Consultancy Services has gained USD 10 billion in incremental revenues and over USD 70 billion increase in market capitalisation. He undoubtedly has provided strong leadership to the firm.
Despite being hit by the Covid-19 pandemic, the market cap of TCS grew by about 468 per cent to Rs 13.99 lakh crore in February 2022 from February 2017.
In April 2018, TCS had a market capitalization of $100 billion. It today stands at $141 billion. When Gopinath became the CEO in 2017, the share price was Rs 1204 but it now stays above Rs 3000. There had been a significant rise in the number of employees as well. In 2017, TCS had 390,880 employees, the number strengthened by 42.5 per cent i.e. 556,986 employees in 2022.
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Gopinath’s sudden exit from TCS has come out as a shocker to many. According to three executives familiar with the development, differences between Gopinathan and Chandrasekaran could have led to his departure from the firm.
Incepted in 1968, Tata Consultancy Services is a global leader in IT services, consulting, and business solutions. Only the future can tell how India’s largest IT services firm performs under the leadership of K Krithivasan.