On 16^th March 2023 that is on Thursday India’s largest software service provider Tata Consultancy Services (TCS) announced that its MD & CEO Rajesh Gopinathan has tendered his resignation paving way for K Krithivasan to fill in his position.

The transposition of leadership happened as the Indian IT giant industry faces a taxing environment in some of its large overseas markets while also being vulnerable to its significant exposure to the American banking sector, which is tumbling through a financial crisis.

Sudden Resignation of MD & CEO Rajesh Gopinathan

After a successful stint of 22 years and nearly four years ahead of the completion of his tenure, TCS Ltd chief Rajesh Gopinathan of 52 years stepped down from his position to “pursue his other interests”. This sudden and unexpected move came after just a year into his second five-year term in a $227 Billion Indian IT stalwart which was supposed to end on 20^th February 2027. Although, Mr. Gopinathan will continue, till 15^th September 2023, with TCS to provide transition and support to his successor.

Gopinathan is TCS’s first CEO to abort his tenure for an early exit. He succeeded previous CEO Chandrasekaran who was promoted, in February 2017, to the post of Tata Sons Chairman. In a press release, he conveyed his satisfaction that during his tenure as a Managing Director (MD) and Chief Executive Officer (CEO), the market capitalization of the company swelled by $70 billion. He added that his conscious action to bow out is the result of deep reflection on what he wanted in the next phase of his life and was discussed with the Board and the Chairperson.

Gopinathan graduated with an Electrical and Electronics Engineering degree from the Regional Engineering College, Tiruchirappalli (now National Institute of Technology, Tiruchirappalli) in 1994. In 1996, he acquired a post-graduate diploma in Management (PGDM) from the Indian Institute of Management, Ahmedabad.

TCS under Gopinathan

Gopinathan joined Tata Industries in 2001, where he worked on multiple assignments with various Tata companies since April 1996 and holds 2670 shares of the company. Under the reign of Mr. Gopinathan, TCS updated its organizational structure with specialized groups aimed to assist start-ups as well as large global firms, picturing revenues of up to $50 billion before 2030. His leadership led the company’s market capitalization, in April 2018, cross $100 billion, making TCS the most valuable company in India. According to the Brand Finance 2021 report, TCS’s brand value, in 2021, grew by $1.4 billion over the last year to $15 billion and was ranked among the Top 3 most valuable global brands in the sector of IT Services.

Under Gopinathan, in the midst of a board battle at TCS’s parent Tata Sons, who first occupied the corner office on 21^st February 2017, the IT Company’s revenue has expanded by 73%, profit has zoomed by 65% and, shares have rocketed by 156%. The company’s shares were trading at Rs 1,116 apiece in February 2017 and the company’s scrip on BSE closed trading at Rs 3,182 on Thursday.

Appointment of K Krithivasan as MD & CEO

Senior executive K Krithivasan, who spearheads TCS’s biggest business division of banking, financial services, and insurance (BFSI), has been named CEO-designate with immediate effect. He will take the role of MD and CEO on 16^th September 2023, subject to shareholders’ approval. In 1989, Krithivasan (58), also known as ‘Krithi’, joined TCS and has been obligated to various leadership roles in the IT titan. It will be easier on his part to fill in the shoes of his predecessor as he knows the inside and out of the company and the IT sector industry.