IT Giant TCS CEO And MD Rajesh Gopinathan Resigns, K Krithivasan Becomes New Chief

The CEO of the country’s largest software company Tata Consultancy Services (TCS), Rajesh Gopinathan has resigned. The company has named K Krithivasan, head of BFSI, as CEO in his place. Gopinathan will be with the company till September 15. For the past few months, the global tech industry along with India is facing difficulties due to the economic slowdown and some other reasons.

The company has a statement said, “After an illustrious career of over 22 years with TCS and a successful innings as Managing Director and CEO over the last six years, Rajesh Gopinathan has decided to leave the company. The Board has appointed K Krithivasan with immediate effect.” Krithivasan will serve in the interim period along with Gopinathan and will be appointed as Managing Director and CEO in the next financial year.” The country’s IT industry is facing challenges in its two major markets – America and Europe.

Krithivasan, who joined TCS in 1989, has headed various divisions during his career with the company. In the third quarter of the current financial year TCS The consolidated net profit of Rs.10,846 crore had increased to Rs. The company had earned a profit of around Rs 9,800 crore in the same quarter of the previous financial year. The company’s order book stood at $7.8 billion during the October-December period. It was $ 8.1 billion in the September quarter.

Analysts had estimated the company’s profit at Rs 11,046 crore for the third quarter. The IT sector has been affected by the slowdown in the US and Europe, from where it gets a major chunk of its revenue. The company had decided to give 100 per cent variable pay to most of its workers for the third quarter. TCS paid 100 per cent variable pay in the second quarter as well. The company’s workforce decreased by 2,197 workers in the third quarter. TCS had a total workforce of 6,13,974 for the quarter ending December. In the last few months, some big software and tech companies including Microsoft have also taken steps like layoffs to reduce costs.