Rajesh Gopinathan has been named new CEO of Tata Consultancy Services (TCS), succeeding Natarajan Chandrasekaran, who has been promoted to Chair of the parent company, Tata Sons.
“TCS has evolved into an industry leader during Chandrashekaran’s tenure. It is definitely big shoes to fill. I am confident of continuing this great journey that TCS is on,” Gopinathan said.
An MBA graduate from the country’s prestigious business school, the Indian Institute of Management, Gopinathan has extensive experience in handling the financial functions of TCS. He also holds an engineering degree.
Analysts say he has a clear understanding of the company’s strengths and weaknesses. But his promotion comes at a time when India’s IT outsourcing model is undergoing a major change, largely due to the rise of new technologies, such as automation.
Gopinathan began his career in TCS about one-and- half decades ago. In its statement, the company said that he played a key role in developing it as a global IT services giant. The firm has yet to disclose who will succeed him as CFO.
It seems this is part of a major reshuffle in the firm. In a statement, TCS also announced that it had appointed Ganapathy Subramaniam as its new chief operating officer (COO).
Meanwhile, the company’s December quarter results beat consensus estimates. Revenue rose 5.8% year-on-year to $4.379 billion. Quarterly profit rose 1.6% to $1 billion, ahead of the $948.5 million expected by market analysts.
The IT firm has attributed this success to what it called “double digit’ growth in Latin America. TCS has employed more than 378,000 people in 45 countries across the world.
One of Gopinathan’s first challenges will be the reintroduction of the immigration bill to U.S. Congress, which analysts say may further restrict the use of H-1B visas, the work visa used by India’s IT companies.