'TCS' best years ahead': Outgoing CEO Gopinathan writes to employees
Rajesh Gopinathan, the outgoing CEO and MD of Tata Consultancy Services (TCS), thanked employees and welcomed K Krithivasan who takes charge of India’s largest IT services firm that has a goal of earning $50 billion in revenue by 2030.
“This week marks the culmination of my two-decade long journey with TCS. I will step down from my role as CEO & MD on 31 May, 2023. It has been an absolute privilege to lead our company in the last six years, which have been a period of tremendous growth and transformation for all of us,” Gopinathan wrote in an email to TCS employees.
“I wish Krithi the very best as he takes over the TCS baton and charts the way forward to our $50 billion aspiration. I am confident that TCS’ best years are ahead,” he said.
Gopinathan, after stepping down as CEO, will continue with the company till September 16, 2023 for transition. According to sources, he and Krithivasan have been meeting all major TCS clients across geographies.
TCS, with Gopinathan as CEO, grew from a $17.5 billion revenue company in March 2017 to $27.9 billion in March 2023. The firm's market capitalization grew from $74 billion to $143 billion in that period.
Gopinathan wrote about the structural changes and branding exercise the company had undertaken. “Most importantly, we went through a process of self-discovery and greater awareness of the wealth of contextual knowledge we possess and the value of work we do for our customers. Awareness, articulation and amplification of the value we deliver is going to be critical for our success in the years ahead.”
Changes included a multi-year effort to create a new brand identity called Building on Belief.
On restructuring the Tata group company, which many believe may have been a contentious point, he wrote: “We expanded the leadership pool by introducing a three-tiered business unit structure across P&L ownership, new market expansion and new business development. This expanded the pool of named business unit owners from 25 to 150 and enabled the incubation of young leadership talent across the company.”
Gopinathan’s resignation in March surprised the market, marking the first time that a CEO of one of India’s top IT services firms stepped down from their role. It was the first in the history of TCS, which has had just four CEOs since its inception in 1968. Gopinathan has not spoken about his plans, but media reports have said he may take on a consulting role within the Tata group.
“I am grateful to have had the privilege to helm TCS journey for six years, and carry on the proud legacy of Mr Kohli, Ram and Chandra. I want to especially thank Chandra, our chairman, for his mentorship over the years…,” he said, referring to Tata group chairman N Chandrasekaran.