PTIOutgoing chief executive Rajesh Gopinathan may stay on in Tata Consultancy Services (TCS) in an advisory role, people familiar with the matter said. While talks are still ongoing, there are discussions within the group to involve Gopinathan in a strategic advisory role within TCS or within other Tata Group companies.
“Rajesh and Chandra (N Chandrasekaran) are still in the early stages of this discussion. The group has a history of elevating TCS executives to tech-facing roles and the current push on digital growth across the board makes him an obvious candidate,” said one of the persons, adding that any such decision is likely to be announced only after Gopinathan’s exit from TCS.
TCS, India’s largest software exporter, did not respond to queries as it is in the silent period.
During a press conference last week, Gopinathan, who is set to leave the company on September 15, said that he has developed respect for advisors during his stint as the CEO. However, he also stated that he had no immediate plans beyond his current stint and that he will weigh his options.
Also read | How TCS fared in the last six years under Rajesh Gopinathan’s watch
"As far as advisory roles go, my respect for advisors is exponentially growing. So, I will see whether something comes out of that. But as of now no plans," he told reporters.
During Gopinathan’s six-year stint, the company added over $10 billion in incremental revenue, to $25.8 billion, and over $70 billion in market capitalisation, to $140 billion.
In fact, it was TCS’ bull run in 2018 that helped the Tata Group reach the Rs 10 trillion market capitalisation milestone before Reliance Industries. This further prompted the group to explore a larger digital strategy across its businesses to replicate the success of TCS.
Gopinathan’s experience may be needed for other Tata Sons ventures such as Tata Digital, which is yet to find a strong footing, along with possible advisory roles in other tech ventures. He may also stay on as a non-executive member of the TCS Board.
For instance, the group launched four new businesses during the pandemic and CEOs of two of those came from TCS.
Also read | N Chandrasekaran will continue to remain a mentor and guide: outgoing TCS CEO Rajesh Gopinathan
Pratik Pal, a 28-year veteran of the TCS consumer packaged goods (CPG) and retail business, was appointed CEO of Tata Digital.
ET reported on March 20 citing several sources in the company and industry experts that a new operating model mooted last year by Gopinathan may have caused ‘unrest’ among some employees of the country’s largest software services exporter.
The link between the restructuring and Gopinathan’s sudden exit, however, cannot be clearly established, analysts and insiders said.
In a surprise move, Gopinathan announced his resignation from the company after a six-year stint as CEO and a 22-year career at TCS.
“Rajesh and Chandra (N Chandrasekaran) are still in the early stages of this discussion. The group has a history of elevating TCS executives to tech-facing roles and the current push on digital growth across the board makes him an obvious candidate,” said one of the persons, adding that any such decision is likely to be announced only after Gopinathan’s exit from TCS.
Advisory roles both at TCS and at the Group level are up for discussion, added the person.
TCS, India’s largest software exporter, did not respond to queries as it is in the silent period.
During a press conference last week, Gopinathan, who is set to leave the company on September 15, said that he has developed respect for advisors during his stint as the CEO. However, he also stated that he had no immediate plans beyond his current stint and that he will weigh his options.
Also read | How TCS fared in the last six years under Rajesh Gopinathan’s watch
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"As far as advisory roles go, my respect for advisors is exponentially growing. So, I will see whether something comes out of that. But as of now no plans," he told reporters.
During Gopinathan’s six-year stint, the company added over $10 billion in incremental revenue, to $25.8 billion, and over $70 billion in market capitalisation, to $140 billion.
In fact, it was TCS’ bull run in 2018 that helped the Tata Group reach the Rs 10 trillion market capitalisation milestone before Reliance Industries. This further prompted the group to explore a larger digital strategy across its businesses to replicate the success of TCS.
Gopinathan’s experience may be needed for other Tata Sons ventures such as Tata Digital, which is yet to find a strong footing, along with possible advisory roles in other tech ventures. He may also stay on as a non-executive member of the TCS Board.
For instance, the group launched four new businesses during the pandemic and CEOs of two of those came from TCS.
Also read | N Chandrasekaran will continue to remain a mentor and guide: outgoing TCS CEO Rajesh Gopinathan
Pratik Pal, a 28-year veteran of the TCS consumer packaged goods (CPG) and retail business, was appointed CEO of Tata Digital.
ET reported on March 20 citing several sources in the company and industry experts that a new operating model mooted last year by Gopinathan may have caused ‘unrest’ among some employees of the country’s largest software services exporter.
The link between the restructuring and Gopinathan’s sudden exit, however, cannot be clearly established, analysts and insiders said.
In a surprise move, Gopinathan announced his resignation from the company after a six-year stint as CEO and a 22-year career at TCS.
( Originally published on Mar 21, 2023 )
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