The Tata group is understood to be looking at the possibility of engaging the outgoing managing director & chief executive officer (CEO) of Tata Consultancy Services (TCS), Rajesh Gopinathan, in an advisory role.
Last Thursday, the country’s largest IT services firm announced that Gopinathan has stepped down to pursue other interests. Subsequently, its board nominated K. Krithivasan as the CEO designate with effect from March 16, 2023.
TCS disclosed that Gopinathan will continue with the company till September 15, 2023, to provide transition and support to his successor while Krithivasan will be appointed as the MD & CEO in the next financial year.
It is now understood that Tata Sons chairman N. Chandrasekaran has discussed the engagement of Gopinathan with the group after September 15 in an advisory role.
A PTI report said there have been preliminary discussions between the two as the group needs reliable and experienced hands with its diversification into various technology domains.
Gopinathan, who addressed the press last Friday had, however, said that he has no immediate plans to engage with the Tata group in advisory roles.
“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 had said.
The resignation of Gopinathan came as a big surprise to the industry as it was from a company known to have stable leadership.
However, the stock markets did not react in an adverse manner to the change since a drastic change in the company’s strategy is not expected.
This latest buzz of Gopinathan in a likely advisory role at the Tata group comes after a Moneycontrol report which said that slowing growth and discontent over a major reorganisation exercise that was launched in April 2022, were some of the reasons for his sudden departure. The recast had seen the company segregating clients into four distinctive business groups depending on a client’s journey with it, instead of verticals and geographies.
According to the report, senior executives were not happy about the change as it would have led to an account going out of their hands once it gained in size.
Shares of TCS on Tuesday ended 1.12 per cent lower at Rs3,105.90 as the current banking crisis is seen as affecting the sector’s growth.
Gopinathan was elevatedto the role of CEO in February 2017 after serving as the CFO since 2013.
He has played a major role in helping TCS become a $ 25.7 billion global company at the end of 2021-22 and the largest private sector employer with over 613,000 associates.
Under his leadership, TCS’market capitalisation crossed$ 167.86 billion in 2022-23, making it the second most valuable company in India.
He also helped TCS cross the net profit mark of Rs 10,846 crore in the third quarter of 2022-23.