Tata Consultancy Services (TCS), India’s leading software company, has undergone a significant organizational change under the leadership of its CEO K Krithivasan. This new operating structure comes into effect from June 1, following an extensive discussion with customers and associates over the past few months.
Customer-Centric Approach Drives the Change
Based on valuable feedback from clients and associates, TCS has decided to deliver the best value to customers by synergizing its domain and contextual knowledge across units. The company has announced a new operating structure that regroups its existing Industry Solutions Unit (ISUs) along industry segments into key business groups. This strategic decision is aimed at deepening customer centricity, which TCS considers crucial for its continued growth.
Moving Away from the Previous Structure
Interestingly, this new operating structure marks a grudging reversal of the previous reorganization introduced in April 2022 under former CEO and MD Rajesh Gopinathan. The earlier structure grouped clients into four distinctive business groups based on their journey with the company, rather than by verticals and geographies. Unfortunately, this approach led to some contention among senior leaders and vertical heads, who found it challenging to take ownership of accounts due to the possibility of losing control once an account becomes significant.
A Reshuffling of Responsibilities
In the new plan, TCS retains the concept of grouping clients based on relationship maturity but now places them under the umbrella of verticalized business groups. Moreover, this reshuffling primarily affects responsibilities at the senior-most level, while the Industry Solutions Unit (ISU) structure and customer-facing layer remain untouched.
Welcomed Changes and Leadership Appointments
The recent restructuring has been greeted with enthusiasm, especially by industry leaders who were dissatisfied with previous restructurings. To strengthen the leadership team, TCS has made several key appointments and changes. Rajshree R, who served as the chief marketing officer of the company, has become the vice-chairman. Abhinav Kumar, a TCS veteran with over 21 years of experience, has taken over as the new Chief Marketing and Communications Officer for Global Markets.
Additionally, K Ananth Krishnan, the company’s chief technology officer, is retiring. TCS has also appointed Harrick Vin, Shankar Narayanan, V Rajanna, Siva Ganesan, Ashok Pai, and Reguraman (Regu) Ayyaswamy as senior management personnel (SMPs) effective from August 1.
Navigating Challenges
Despite the organizational changes, TCS faces several challenges in the business environment. The company is currently contending with macroeconomic uncertainties and an investigation into a recruitment bribe case. CEO K Krithivasan acknowledges the difficulty of achieving double-digit growth this year due to client caution in an uncertain demand environment.
Conclusion
TCS’ new operating structure under CEO K Krithivasan represents a significant step toward enhancing customer centricity and addressing previous concerns. By aligning its Industry Solutions Unit along industry segments into key business groups, the company aims to strengthen its position in the market. While challenges persist, TCS remains committed to delivering value and maintaining its status as India’s largest software company.
