Confident that TCS' best years are ahead, outgoing CEO Rajesh Gopinathan says in his farewell note to employees

Rajesh Gopinathan

Tata Consultancy Services’ outgoing CEO Rajesh Gopinathan penned an emotional note to employees as he prepares to step down on May 31, after six years at the helm of the company. In a note sent on May 29, Gopinathan recounted the high points during his tenure, stating that the software firm grew revenues by $10.4 billion and returned $27.3 billion to shareholders through dividends and share buybacks.

He reflected on his 22 years in the company in an email to employees, stating that the company's best days are ahead, a day before he steps down as the CEO and hands over the baton to K Krithivasan on June 1.

“I wish Krithi the very best as he takes over the TCS baton and charts the way forward to our $50 billion aspiration, I am confident that TCS' best years are ahead, and I look forward to cheering all of you and your continued success from outside,” he said.

The outgoing CEO said in the letter that they have set the gold standard in the industry for financial performance, and that it was TCS’ focus on “operational rigor, strategic transformation, innovation, and profitable growth has helped TCS grow revenues from $17.5 billion in March 2017 to $27.9 billion in March 2023.”

He added that during this time, TCS' market capitalisation has gone from $74 billion to $143 billion.

Gopinathan looked back on his time at the company, saying that this week marks the culmination of his two-decade-long journey with TCS. “I will step down from my role as CEO & MD on 31 May, 2023. It has been an absolute privilege to lead our company in the last six years, which have been a period of tremendous growth and transformation for all of us.”

During his tenure, Gopinathan said the company undertook redefinition of the service portfolio and market positioning to integrate its offerings, developed newer capabilities and services, and increased engagement with clients.

“We also undertook an ambitious redefinition of TCS' service portfolio and market positioning by introducing the Business 4.0 and Growth & Transformation frameworks to integrate our technology services offerings with greater focus on business value delivered," he said.

"Awareness, articulation and amplification of the value we deliver is going to be critical for our success in the years ahead...In a world of Al and automation, our ability to continuously enhance and leverage contextual knowledge is what will differentiate us and position us as the partners of choice for our customers," he added.

Gopinathan stressed on the company’s focus on Agile, Automation and cloud, terming the company capitalising on the cloud opportunity as helping it emerge as top global partner of all three leading cloud providers. “Combining this with increasing investments and focus on our field sales teams helped us expand our customer base across markets and increase the number of customers, contributing more than $100 million in annual revenue from 35 to 60,” he said.

TCS lifer Gopinathan will stay on till September to smooth over the transition for his successor, K Krithivasan, who takes over the mantle of CEO on June 1. 

Gopinathan's abrupt exit took all stakeholders by surprise, considering the storied IT firm has had just 4 CEOs in its 55-year history — FC Kohli, S Ramadorai, N Chandrasekharan, and then Gopinathan. It also comes at a particularly fraught time for the IT industry at large, which is facing a slowdown amid increasing headwinds.

"I am grateful to have had the privilege to helm the TCS journey for the last six years, and carry on the proud legacy of Mr Kohli, Ram and Chandra. I want to especially thank Chandra, our Chairman, for his mentorship over the years," Gopinathan said.

Moneycontrol reported in March that this was due to a confluence of factors, finally precipitating his exit.