TCS revamps leadership, launches new AI-focused business units in major reorganisation

MUMBAI: A fresh line of code is reshaping the corner office. Tata Consultancy Services has rolled out its biggest leadership overhaul in three years, creating new AI-focused business units and reshuffling senior executives across key verticals as it positions itself for the next phase of growth.

According to internal emails reviewed by Moneycontrol, the reorganisation affects more than a dozen leadership roles across banking, cybersecurity, communications and media, energy, travel and hospitality, as well as the company’s US West Coast operations. The move also introduces dedicated business units for Autonomous Business Operations and the expanding ServiceNow practice.

The biggest changes have come in TCS’ banking, financial services and insurance (BFSI) division, which contributes more than 30 per cent of the company’s revenue.

Susheel Vasudevan, who headed BFSI Americas, has been moved into a strategic role reporting directly to Tata Consultancy Services chief executive officer and managing director K Krithivasan.

The BFSI Americas business has been split into two business groups. Rakesh Kumar, previously ISU head for BFSI US West, and Mohan Veeturi, who led BFSI US East Banking, will head the newly created divisions.

In an internal note, Krithivasan said the restructuring reflects profound changes sweeping the financial services industry, including artificial intelligence, changing customer expectations, platform modernisation and new operating models. He said strengthening leadership bandwidth would allow the company to remain closer to evolving client needs.

The leadership changes extend beyond BFSI. Manmeet Chhabra has been appointed country head for TCS Canada, succeeding Soumen Roy, who earlier moved to lead the Global Value & Innovation Centres business unit.

To sharpen its industry focus, TCS has created a dedicated Energy, Resources & Utilities Business Group under Sabyasachi Chandra, while Kumaranarayanan has been appointed to head the cybersecurity business.

The company has also established a standalone Travel, Transport & Hospitality Business Group led by Arun Pradeep, with Ganesa Vaikuntam taking charge of the Life Sciences UK & Europe industry segment.

In another organisational change, TCS has merged its Communications, Media, Information Services and Technology practices into a single business group, which will be led by V Rajanna.

Recognising the strategic importance of technology companies on the US West Coast, TCS has also set up a dedicated business group for the region. The new unit, headed by Akhilesh Tripathi, will focus on industries such as artificial intelligence, semiconductors, quantum computing, software and product engineering while strengthening the company’s role in the wider innovation ecosystem.

Another key appointment sees Rajnish Palande become global head of the company’s ServiceNow practice, where he will oversee the end-to-end global strategy.

In a separate internal communication, Tata Consultancy Services chief operating officer Aarthi Subramanian said the company’s recently announced 360-degree partnership with ServiceNow, covering go-to-market initiatives and professional services delivery for Fortune 500 customers, gives TCS the opportunity to become a global leader within the ServiceNow ecosystem.

The IT major has also created a dedicated sales organisation for Autonomous Business Operations, with Akhilesh Tiwari appointed to lead the new unit after heading the Communications, Media and Information Services business.

The latest restructuring builds on TCS’ 2023 transition from a customer-size-based structure to a vertical-led operating model. It also follows the company’s workforce reduction of around 2 per cent, or more than 12,000 employees, in 2025 as it sought to become more agile amid rapid technological disruption.

The sweeping changes signal TCS’ intention to reorganise around artificial intelligence, industry-specific expertise and strategic technology partnerships as competition intensifies in the global IT services market.