Starting in April, Tata Consultancy Services (TCS) is considering to divide its operational structure into four groups acquisition, relationship incubation, enterprise growth and business transformation— presenting an industry-first model that moves away from the “traditional three-dimension ( framework) of geography, vertical or services.
“It is a logical evolution of where we are. Typically, we have been organised around three dimensions – geography, services and verticals. Now, we are trying to introduce a fourth dimension to our organisation,” Rajesh Gopinathan, TCS MD & CEO told CNBC-TV18.
Growth and transformation projects undertaken by its customers would be the key for the IT behemoth to achieve the $50 billion revenue target that they have set, says the TCS MD & CEO.
Gopinathan further asserted the company needed to have the right structure to participate in growth opportunities. “When we achieve $50 billion, TCS will be a lot more balanced on the business and technology front, around growth and transformation vs cost and optimization,” he said.
New Business Structure at TCS
Susheel Vasudevan, currently group head of manufacturing and utilities, will lead the relationship incubation group while Krishnan Ramanujam who is president and head of business and technology services, will take charge of enterprise growth. Business transformation for long term and large clients, will be overseen by Debashis Ghosh, who at present is the president for life sciences, healthcare, energy and public services. Kamal Bhadada, who is President, Communications, Media and Information Services Business Unit at TCS will head a group focused on new business models, ET reported citing sources.
Aim to Focus on Customer Relationship
When asked about the aim of the restructural plan, Rajesh Gopinathan explained, “Again with our focus on the customer. The nature of customer relationships is very different if different scenarios are taken into consideration. More importantly, when we look at a customer’s lifetime relationship with us, there is a journey that the customer goes through. Initial projects have to be developed in time to develop trust and relationships.”
“The comfort results in a greater expanded relationship. Then the customer looks for the strategic value that they look for in us. This new dimension we are introducing will realise this logical progression of relationship with our customers. We want to see that the customer’s journey with us should be as seamless and possible,” he added.
Presently, TCS reports its businesses by industry verticals such as retail & CPG, banking financial services, communication among others. This type of business restructuring is not happening for the first time as the company created 23 smaller units of about $250 million each during 2008. Which has helped in boosting growth from $6 billion in the fiscal year 2008-09 to $19 billion by 2018-19 financial year.
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