LATEST NEWS – In its 49 years of existence, India’s largest IT services provider, Tata Consultancy Services (TCS) has seen its leadership change four times. Rajesh Gopinathan is to take over as the company CEO and Managing Director on Sunday and he seems to be headed for a tough time.
Gopinathan has twin challenges to overcome. India’s largest IT services firm is facing headwinds in a market where automation and artificial intelligence is disrupting traditional services segments. A tougher regulatory environment in its major markets may make the company reconsider its supply strategy and its impact on margins.
Add to this, Gopinathan does not have the fortune, like his predecessor, of getting groomed for the role. Before Natarajan Chandrasekaran became the CEO of the company, he was the COO for three years, which gave him enough room to get into the role of the CEO in 2009.
However, for Gopinathan, this is not the case. Though he has been a part of Chandrasekaran’s core team as finance head, he has not worked as an operational person.
“The positive aspect of this change at TCS is that Chandrasekaran will be around. He is the chairman of the company. So the strategy direction and commitments made to the clients will continue. Gopinathan is a good choice for the given environment. As to how people will take the CFO taking over as CEO, only time will tell,” said Pareekh Jain, HfS Research India. READ MORE