Tcs: the CEO of TCS resigns 4 years before the end of the mandate

MUMBAI/BENGALURU: Nanny Consultancy Services (TCS) MD and CEO said Thursday Rajesh Gopinatan has resigned: an abrupt departure that comes just a year into his second five-year term at the helm of the software services major. Senior executive K Krithivasan, who leads TCS extensionThe largest corporate division of Banks, Financial Services and Insurance (BFSI), has been named CEO-designate, effective Thursday. She will take over as chief executive officer and chief executive officer on September 16, subject to shareholder approval.
Krithivasan (58), known as ‘Krithi’, joined TCS in 1989 and has held various leadership roles in the IT giant. Gopinatan (52), who was reappointed as CEO of TCS last year until February 20, 2027, will leave the Tata Group’s software services arm to “pursue other interests,” the company said.

The change in leadership comes as India’s $227 billion IT industry faces a challenging environment in some of its large overseas markets, but also because of its significant exposure to the US banking sector, which is in the middle of a financial crisis.
Under Gopinathan, who first occupied the corner office on Feb. 21, 2017 during a board battle at TCS’s parent company, Tata Sons, the IT company’s stock soared 156%, revenue is increased by 73% and profits increased by 65%. Gopinathan joined TCS in 2001 from Tata Industries where he has worked on multiple assignments with various Tata companies since April 1996.
Gopinathan is the first CEO of TCS to terminate his tenure and head towards an early exit. The previous CEOs, with the exception of N Chandrasekaran, who moved to a broader role at Tata Sons, have retired from the IT company.
A source close to Gopinathan said, “This (a change) has been playing on his mind for some time. He wanted to see his life again in his 50s. He felt that there is never a good time or a bad time to change. And so he decided to go ahead ”.
Tata Sons President Chandrasekaran said in an email to employees, “Rajesh has excelled with exemplary performance and has laid a solid foundation for the next phase of TCS. I thank Rajesh for his input”. Gopinathan holds 2,760 shares of the company. According to his working conditions, he will have to give six months’ notice to the company. Gopinathan, TCS said, “will continue with the company until September 15 to provide transition and support to his successor”.
Ray Wang, CEO of Constellation Research, said: “Rajesh has done a great job in dealing with the pandemic. Krithivasan, as the head of the BFSI unit, has been very successful with big business. I think the board was looking for someone who was a practitioner.”