TCS Update: As soon as Rajesh Gopinathan resigned from the post of CEO of TCS, Tata Sons Chairman Natarajan Chandrasekaran did not delay in accepting his resignation. According to reports, Chandrasekaran was not happy with the way TCS was being run in the recent past by Rajesh Gopinathan, himself a former CEO of TCS.
Rajesh Gopinathan’s style of functioning and the company’s lackluster performance had become a cause of concern for the Tata group and the chairman. During Gopinathan’s tenure, TCS’s revenue had increased from $4.45 billion in March 2017 to $7.075 billion in December 2022 with a jump of 59 per cent. But compared to TCS, its rival Infosys grew at a faster pace during 2020, 2021 and 2022. Accenture also showed higher growth in 2021 and 2022 than TCS.
From 1 April 2017 to 31 March 2023, TCS recorded a revenue of $ 10 billion. While Infosys recorded a revenue of $8.5 billion during this period. In terms of financial performance, the gap between Infosys and TCS was narrowing, TCS’s revenue last year stood at $25.7 billion, while Infosys’s was $16.3 billion. Accenture’s revenue has been $61.5 billion and in the last six years alone, the company has added $30 billion in revenue.
According to reports, Rajesh Gopinathan used to get angry at any person in the review meeting, ignoring his seniority. Senior people of TCS were very upset with this and wrong message was also being sent. While Natarajan Chandrasekaran’s style was completely opposite, whose behavior people were convinced.
The reason for the difference is also that Natarajan Chandrasekaran did not refrain from waiting at the client’s door to bring the contract. While Rajesh Gopinathan preferred to meet only the CEO of the customer company. Also, Rajesh Gopinathan’s focus was on maintaining the company’s bottomline ie profits and margins. They used to give away multi million dollars to save margin.
According to the report, Natarajan Chandrasekaran was very disappointed with the falling performance of TCS compared to Infosys and Accenture Plc. According to Mint’s report, Chandrasekaran had also expressed his unhappiness over the company’s falling financial performance vis-à-vis other companies in a strategic meeting held in Switzerland in August last year.
Rajesh Gopinathan offered his resignation to the board and a three-member committee headed by former SBI chairman OP Bhatt cleared the name of K Krithivasan. Natarajan Chandrasekaran was also included in the committee. According to the report, Natarajan Chandrasekaran had already taken Tata Group Chairman Emeritus Ratan Tata into confidence for all these changes.