Friday, March 17, 2023

Rajesh Gopinathan, CEO of TCS, resigns; K Krithivasan will take over

TCS CEO Rajesh Gopinathan quits; K Krithivasan to replace him


MUMBAI/BENGALURU: Rajesh Gopinathan, MD and CEO of Tata Consultancy Services (TCS), announced his resignation on Thursday. His sudden departure comes just one year into his second five-year term as CEO of the software services company. K Krithivasan, a senior executive, has been appointed CEO-designate with effect from Thursday. Krithivasan is in charge of TCS's largest business division, banking, financial services, and insurance (BFSI). Subject to shareholder approval, on September 16, he will assume his roles as MD and CEO.

Krithivasan, also known as "Krithi," is 58 years old and has worked for TCS in a variety of leadership capacities. According to the company, Gopinathan, 52, who was given a second term as CEO of TCS until February 20, 2027, will leave the software services division of the Tata Group to "pursue other interests."

The authority change comes as the $227-billion Indian IT industry faces a difficult climate in a portion of its enormous abroad business sectors while likewise going under the scanner due to its huge openness to the American financial area, which is in a monetary emergency.

The IT company's shares have increased by 156 percent, revenue has increased by 73 percent, and profit has increased by 65 percent under Gopinathan, who first took over as CEO on February 21, 2017, during a board fight at TCS's parent Tata Sons. Gopinathan joined TCS in 2001 from Tata Industries, where he had been working since April 1996 on multiple projects for various Tata companies.

Gopinathan is the first CEO of TCS to end his term early and leave the company. Except for N Chandrasekaran, who has been promoted to a more senior position at Tata Sons, all of the IT company's previous CEOs have retired.

"This (a change) has been playing in his mind for some time," stated a source close to Gopinathan. He needed to relook at his life in his 50s. He believed that there is never a bad time to make a change. He made the decision to continue.

"Rajesh has distinguished himself with exemplary performance and has laid a strong foundation for the next phase of TCS," Tata Sons chairman Chandrasekaran stated in an email to employees. I say thanks to Rajesh for his commitment." 2,760 of the company's shares are owned by Gopinathan. He will be required to give the company a notice period of six months in accordance with his employment terms. According to TCS, Gopinathan "will continue with the company until September 15 to provide transition support and assistance to his successor."

Constellation Research's CEO, Ray Wang, stated, "Rajesh has done a great job navigating the pandemic." Krithivasan, as top of the BFSI unit, has had a ton of progress with huge arrangements. I believe that the board was looking for a practitioner.

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