K Krithivasan revamps TCS, scraps Rajesh Gopinathan strategy

economictimes.indiatimes.com:

Tata Consultancy Services (TCS) revamped its organisation structure, aligning it with the $28-billion tech company’s verticals or business groups (BGs), according to an internal note by new chief executive K Krithivasan sent on Friday. The reorg under new chief executive K Krithivasan abandons most elements of the restructuring put in place by predecessor Rajesh Gopinathan in April last year. India’s biggest software developer also announced appointments to the leadership team, along with new heads for its seven business groups, according to a stock exchange filing early on Saturday.

The earlier structure — an ambitious bet by Gopinathan to catapult TCS to a $50-billion company — had organised the company as per the size of clients. It was said to have caused resentment among senior employees of the companies as well as clients. “It has become increasingly evident that TCS could deliver the best value to our customers by synergising our domain and contextual knowledge across units,” Krithivasan told employees in an email unveiling the changes on Friday.

ET has seen the email. Experts said that returning to the old organisational structure will be well received both by the clients and internally. “The current organisation is confusing, with many competing components.