Tata Consultancy Services Promotes From Within To Fill CEO, COO Roles

IT services giant Tata Consultancy Services will have new faces in its top two roles as the company doubles down on digital, cloud and the Internet of Things.

Mumbai, India-based TCS, No. 4 on the 2016 CRN Solution Provider 500, said that Rajesh Gopinathan -- the company's chief financial officer for the past four years -- will take the CEO role, while N Ganapathy Subramaniam -- president of the company's Financial Solutions business unit -- will become president and chief operating officer of the $16.5 billion company.

Meanwhile, N Chandrasekaran (commonly known as Chandra), TCS' CEO for the past seven years, will become chairman for the entire Tata Sons conglomerate, which owns major entities in the steel, automotive, IT, chemicals, consumer goods and telecom sectors. The company did not immediately respond to a request for additional comment.

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"TCS has evolved into an industry leader during Chandra's tenure," Gopinathan said in a statement. "It is definitely big shoes to fill. With continuous guidance from Chandra and the support of the TCS team, I am confident of continuing this great journey that TCS is on."

Gopinathan joined TCS in 2001 and served as vice president of business finance before becoming CFO in February 2013. During Gopinathan's 15-year tenure at TCS, he has overseen the company's newly established e-business unit in the U.S., managed margins and financial controls, and designed, structured and implemented a new organizational structure and operating model for the company.

Subramaniam (commonly known as NGS) has been part of the company for the past 34 years and has focused on delivering banking and financial services solutions to TCS' customers around the globe. Banking, financial services and insurance accounted for 40.4 percent of TCS' revenue in the company's most recent quarter, making it triple the size of the company's second largest vertical market.

"I sincerely thank the TCS board for this honor," Subramaniam said in a statement. "I look forward to working with Rajesh and the rest of my colleagues and contribute to TCS' future growth."

Chandrasekaran joined TCS in 1987 and served as its chief operating officer before taking over as CEO in October 2009. Chandrasekaran has focused on launching and scaling digital products and platforms for enterprises during his time as CEO, and has grown TCS' headcount to 378,500 people from 132 different nationalities.

"TCS' core strength is its strong leadership talent that is collaborative and aspirational," Chandrasekaran said in a statement. "I have been privileged to lead this company of great professionals over the last seven years … [and] am absolutely delighted that the board has chosen both Rajesh and NGS to lead this company into the future."

TCS' digital business now accounts for nearly 17 percent of overall due to 30 percent annual growth and strength across the company's platforms, cloud and Internet of Things practices. As a result, TCS' infrastructure services, engineering and industrial services, and asset leveraged solutions businesses have seen annual growth of 19.9 percent, 18.2 percent and 17.2 percent, respectively.

Over the past quarter, TCS said it has helped an investment services firm predict commercial loan performance using machine learning, helped an auto insurance company re-imagine the connected car experience, helped an insurance firm transform its legacy claims program through big data, and helped a federal bank define its enterprise data strategy, operating model and execution road map.

Although TCS is based in India, the company derived 55 percent of its revenue in its most recent quarter from North America, up from 53.5 percent the year prior. TCS' North American business has grown by 8.7 percent over the past year after factoring out changes in foreign currency exchange rates.

Overall, TCS saw revenue in the most recent quarter climb to $4.38 billion, up 5.8 percent from $4.15 billion the year prior. Quarterly net income, meanwhile, jumped to $1 billion, up 8 percent from $926 million last year.