TCS Revamps Leadership Structure with Five New Business Units to Drive AI Transformation

The management team of Tata Consultancy Services has been reorganised at the highest levels. Additionally, in response to concerns that AI may destabilise India's $315 billion IT industry, the tech behemoth has established five new business divisions. These divisions have been created to concentrate on expanding TCS' presence in the West Coast market and its ServiceNow expertise.

On July 12, CEO K Krithivasan and COO Aarthi Subramanian made the announcements through a series of memos. The banking and financial services Americas section will be divided in half, with Mohan Veeturi leading the US East banking unit and industry veteran Rakesh Kumar leading the US West unit. The current head of US banking, Susheel Vasudevan, will reportedly take on a more strategic role and report directly to the CEO, as stated in one of the documents.

TCS’s BFSI Segment Witnessing Major Overhauling

The banking, financial services and insurance (BFSI) vertical—which contributes more than 30% of TCS' total revenue—was the focal point of the most substantial reorganisation. An internal email from Krithivasan stated that BFSI Americas has been a major factor in TCS's expansion and dominance in the sector for the past few years. Concurrently, the company is seeing revolutionary changes in its industry as a result of AI, evolving customer expectations, platform modernisation, and new business models.

Maintaining a close relationship with its clients and markets is critical, as is increasing its leadership bandwidth to provide even sharper focus. New business units for its Autonomous Business Operations and ServiceNow operations were established, and there were overall modifications to the following verticals: BFSI, cybersecurity, communications and media, energy resources and utility, travel and hospitality, and the US West Coast business group. In addition, the newly established Energy, Resources & Utilities Business Group will be led by Sabyasachi Chandra (Saby), who is presently the head of the North America Utilities unit.

TCS’ New Business Ventures

The Travel, Transport & Hospitality (TTH) Business Group was established by TCS to enhance leadership bandwidth and offer specialised attention to various key areas in the AI age. The newly established business unit will be headed by Arun Pradeep, who has been supervising our TTH UK & Europe ISU. The position of ISU Head for Life Sciences UK & Europe will be filled by Ganesa Vaikuntam.

Additionally, a new business group would be formed by the merger of the Communications, Media, Information Services & Technology businesses at the IT powerhouse based in Mumbai. The leader of the Technology, Software & Services Business Group, V. Rajanna, has been promoted to the position of head of the combined business group. According to an internal memo, TCS has established a US West Coast Business Group that is home to prominent technology, software, semiconductor, and quantum enterprises. This group is at the centre of significant changes in these industries as well as in product engineering and AI-native business models.

This new corporate organisation will be headed by Akhilesh Tripathi. In order to propel sales actions tailored to autonomous business operations, TCS established a new sales organisation. This new unit will be headed by Akhilesh Tiwari. Prior to this, Akhilesh was in charge of the Communications, Media, and Information Services division. In 2023, TCS saw a significant change in leadership and restructured its operations. The company's prior customer-size-based groups were replaced with a vertical-based operational model during that makeover.