TCS undergoes rejig, creates a business unit focused on AI, Cloud

The rejig goes back to vertical focus, and will encompass the earlier rejig done by Rajesh Gopinathan

Tata Consultancy Services (TCS) is rolling out a new organizational structure and will go back to industry solution units based on verticals. The changes will be effective August 1, 2023. The company has also created a new business unit focused on cloud and AI to capture the fast growing generative AI opportunities.

The changes come as K Krithivasan, the new CEO and MD, takes over the helm of the company. Sources within the company said that while this is a reorganisation back to vertical focus, it also makes changes to the rejig that former CEO and MD Rajesh Gopinathan had announced.

In an internal mail to employees, seen by Business Standard, Krithivasan explained the rationale behind the rejig. He said, “During the last couple of months, I have had the benefit of meeting with many of you and several of our clients across the globe. We have had a wide ranging conversation on technology, their own growth plans, how they look at their future, how they are planning to navigate the geopolitical landscape, strengthen their supply chains, create workplaces of the future, and navigate through change. It has become increasingly evident that TCS could deliver the best value to our customers by synergising our domain and contextual knowledge across units.”

The new operating structure regroups TCS’ existing ISUs along industry segments, under Business Groups (BG). Along with this the company has also announced leadership changes.

In an email response to Business Standard, the company said, "Based on discussions with customers and associates over the last couple of months, we believe, TCS can deliver the best value to the customers by synergising it’s domain and contextual knowledge across units. In this context, we have announced the new operating structure, which regroups our existing ISUs along industry segments into key  Business groups. The above changes will help in deepening customer centricity, which is pivotal to our growth."
 

Now there are 7 BGs. These include, BFSI Americas, to be headed by Susheel Vasudevan, BFSI UK, Europe and Australia, to be headed by Shankar NS, communications media and information services to be led by Akhilesh Tiwari, life sciences, HC, energy, transportation and hospitality, to be headed by Debashis Ghosh, manufacturing, to be led by Anupam Singhal, retail, CPG, travel, transportation and hospitality, to be headed by Krishnan Ramanujam, and tTech software and services, which will be led by V Rajanna.

Some of these leadership changes have been announced by the company in a filing to the exchanges.

More importantly, in order to capture demand and opportunity created by generative AI, the company has created a new business unit called TCS AI.Cloud.

In the email to employees, Krithivsan said, “Generative AI has captured the imagination of enterprises and consumers alike. We have also made significant early investments and launched partnerships with key players in the AI space. To capture this market opportunity, we are launching TCS AI.Cloud.”

This unit will be headed by Siva Ganesan, who has been with the company for 32 years and was the global head of Microsoft business unit and senior VP. Krishna Mohan will be the deputy head. Currently, he is the VP and global head of TCS AWS business unit.

Among some of the other important changes is the creation of Enterprise CBO (cognitive business operations). This will be led by Ashok Pai, who leads the global CBO unit.

Abhinav Kumar has been made the interim head of the unit heading all marketing and communications units globally. Rajashree R, the current marketing head, has been given other responsibilities.  

Rajesh Gopinathan, the former CEO and MD had announced a rejig in 2022, by creating four business groups—acquisition, relationship incubation, enterprise growth and business transformation. The idea of this reorganaisation was to be part of the clients' growth journey, especially when the company takes on board smaller deals.

“The three new focus areas relating to customers that still continue, but now it will go under the vertical units. The ISU focus will continue,” said a source in the know.

In the email to employees, Krithivasan said, “All the ISU heads will report to the respective BG heads with no other changes in the ISU structure. All the Relationship Incubation Group(RIG) accounts will also be moved under the appropriate ISUs.”