Former CEO of Tata Consultancy Services (TCS), Rajesh Gopinathan, has taken on the role of senior advisor in the technology, media, and telecommunications (TMT) practice at Boston Consulting Group (BCG) in its Delhi team. However, an email inquiry to BCG did not yield a response at the time of this report. BCG's TMT consultants are known for developing robust business models and strategies supported by a global network of data scientists, digital business leaders, and IT experts.
Gopinathan's tenure at TCS was marked by significant milestones. During his initial five-year term, TCS's revenue surged to $25 billion by the end of the December quarter in 2021, a remarkable 42% increase from $17.5 billion when he assumed the role in February 2017. His decision to step down as CEO, particularly after securing an extension for a five-year term from 2022 to 2027, came as a surprise. His leadership steered TCS through the challenges of the pandemic, emphasizing a swift shift to remote work through the Secure Borderless Workspaces (SBWS) model, facilitating remote access for employees.
Under his guidance, TCS achieved significant financial milestones, with the company's market capitalization reaching $100 billion in April 2018 and soaring to $200 billion by September 2021. Despite the impressive growth in revenue and market capitalization, TCS's net profit surged to $4.5 billion in the 2021-22 financial year from $3.8 billion in 2016-17. However, the company's profit margins experienced a decline of 700 basis points to 25%.
Gopinathan's strategic vision brought substantial businesses to TCS, including a transformative deal valued at $2 billion with Phoenix Group, Europe's largest life and pensions consolidator, to revamp its Standard Life business using the TCS BaNCS digital platform.
During his tenure, TCS's workforce expanded significantly, growing from 3.8 lakh employees at the end of the March quarter in 2017 to over 6 lakh employees, showcasing the company's substantial growth under his leadership.