As Rajesh Gopinathan signs out of TCS, here's what you need to know

On Thursday, IT giant Tata Consultancy Services (TCS) announced the surprise resignation of Managing Director (MD) and Chief Executive Officer (CEO) Rajesh Gopinathan, who stepped down to ‘pursue other interests’.

The company has nominated Tata Group veteran K Krithivasan as CEO-designate, effective immediately. 

In the operational stretch spanning more than a semi-centennial period, Krithivasan will be the fifth CEO in TCS’s history.

TCS was founded in 1968. The baton will be passed from one veteran to another, as TCS continues its legacy of the internal candidate model for the CEO’s role, and promotes leadership internally.  

How did TCS fare under Rajesh Gopinathan?

Gopinathan headed TCS for six years when it became the second-most valuable company in India, with the market capitalisation crossing $167.86 billion.

Despite external pressures and Covid-steered challenges, the company delivered a revenue compound annual growth rate (CAGR) of 13 per cent and an earnings of 11 per cent over FY18-23 under his leadership, reported TCS.  

Gopinathan is an electrical and electronics engineer from REC Trichy and completed his post-graduate diploma in management from IIM Ahmedabad. He began his career by joining Tata Strategic Management Group in 1996.

In 2001, he moved to TCS, and held various positions, including CFO in 2013–17 before being appointed CEO.  He trailblazed TCS’ brand value by 212 per cent to $45 billion in the past two years. He was reappointed as MD and CEO in 2022, and still had four years remaining in his second term. Gopinathan will continue in TCS till September 15. 

In a media statement, Natarajan Chandrasekaran, chairman of TCS, said, “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 chief financial officer…I am deeply appreciative of Rajesh’s enormous contribution to TCS. I wish him the very best for the future.”

Who is K Krithivasan?

K Krithivasan was among the frontrunners of the company, and analysts are optimistic about the recent appointment.

Completing his bachelor’s degree in Mechanical Engineering from the University of Madras and a Master’s degree in industrial and management engineering from IIT Kanpur, Kritihivasan began his career with TCS in 1989.

With experience ranging over 34 years in TCS, he held various leadership roles in delivery, relationship management, and large program management.

Krithivasan is known to have helped key clients with digital transformation, accelerated change management cycle, established IT programme governance, and attained value beyond cost optimisation. 

Currently, Krithivasan is the President and Global Head of the banking, financial services and insurance (BFSI) business group at TCS. It is the company’s largest vertical that generates 35-40 per cent of the revenue.

Krithivasan is also a member of the Board of Directors of TCS Iberoamerica, TCS Ireland and the supervisory board of TCS Technology Solutions AG. 

Gopinathan added, “Having worked with Krithi over the past two decades, I am confident he is best positioned to take TCS to greater heights along with the leadership team. I will be working closely with Krithi to give him all the support he needs.”

Currently, the market capitalisation of TCS is valued at Rs 11.6 trillion. 

Here is a list of the four CEOs of TCS:

Faquir Chand Kohli, co-founder and first CEO and MD of TCS from 1968 to 1996. He joined the Tata Electric Company, where he held various positions, including that of a general superintendent, and a deputy general manager before he was promoted as the director of Tata Electric Company. There he introduced the use of digital computers for power system design and control. He is known to introduce advanced engineering and management techniques that could be employed to operate power systems, which gained him the title ‘Father of the Indian IT industry.’

He was succeeded by Subramaniam Ramadorai, CEO and MD of TCS from 1996 to 2009. He joined TCS as a junior engineer and set up TCS operations’ throughout the US.

Natarajan Chandrasekaran was third in line, who earlier was the Chief Operating Officer and Executive Director of TCS, before taking over as the CEO in 2009. He remained till 2017.

He spent his career in TCS, joining the company in 1987.

Under his leadership, TCS generated revenue of $16.5 billion in 2015-16. He currently serves as the chairman of Tata Sons. 

He was succeeded by Rajesh Gopinathan, serving as CEO and MD of TCS from 2017 to 2023