Home Business Tata consultancy plunges after CEO Rajesh Gopinathan resigns in surprise move –...

Tata consultancy plunges after CEO Rajesh Gopinathan resigns in surprise move – Usky News


Mumbai: Rajesh Gopinathan resigned as chief executive officer of Tata Consultancy Services LimitedA surprise move that saw shares of Asia’s largest IT services firm nearly triple during his six-year tenure.
TCS Named K Krithivasan, head of its banking and financial services business, named CEO. He will take over from Gopinathan in the next financial year, subject to shareholders’ approval, according to a company filing. The stock, little changed this year, declined more than 1% in early Mumbai trade.
Gopinathan’s decision to step down comes at a time when Indian outsourcers are facing a slowdown in the global economy, which could reduce technology spending due to the pandemic-driven IT services boom. Gopinathan, who has worked with Mumbai-based TCS for over two decades, started leading the software services giant in 2017. During that period, TCS’ revenue more than doubled. His tenure was extended for another five years in 2022.
“Rajesh has had an impressive six years as CEO of TCS, with significant growth in revenue, profits and market cap,” Citigroup analysts said in a note.
Krithivasan told a news conference that he would work with Gopinathan to understand all parts of the business, assuring a smooth transition. He also said that he does not expect any immediate organizational or strategic changes.
“Focusing on employees, focusing on our customers is the most important engine that drives our growth,” he said. “We always try to stay close to our customers and re-examine what we choose to do as market conditions change.”
Under Gopinathan’s leadership, TCS revamped its organizational structure with specialized groups targeted at helping startups eyeing revenues of up to $50 billion before 2030, as well as large global firms. TCS projects sales of $25.7 billion by March 2022.
TCS said in a filing on Thursday that his resignation will be effective from the close of business on September 15.