Tata Consultancy Services’ reorganisation decision was a “joint management decision,” according to TCS COO, N Ganapathy Subramaniam.
TCS’ controversial re-org was undertaken last year under the leadership of the outgoing CEO, Rajesh Gopinathan. With the reorganisation, TCS created four business groups clearly aligned with the customer journey of its clients. While touted to be much needed, the re-org is yet to give growth dividends to the IT major. Moreover, it has been rumoured to be one of the reasons behind Gopinathan’s ouster.
Subramaniam however noted that, “Our organisational model has been ahead of the curve... and we genuinely felt that the customer journey dimension is very important journey in the current context. And it was always a collective decision, it was not only Rajesh’s (Gopinathan) decision. The entire management said that it was a good decision, something that will bring an amount of freshness in the thinking of hour customers are handled and grouped in the customer journey. “
Speaking on TCS’ muted performance for Q4FY23, Subramaniam said that for the first quarter of the next fiscal they are keeping a tentative outlook. “There are many narrations possible, first quarter will be tentative we dont know how it will pan out. The first quarter will be where we will consolidate and see what kind of action we will need to take,” he said.
Strong order book
However, Subramaniam sees the $10 billion order book for Q4FY23 as a prospective green shoot. “We had already pointed softness in last quarter in North America, we were hoping that it will improve, but the softness sustained.”
Subramaniam noted that Europe has contributed a lot to the strong order book. “With the energy crisis being over in Europe, many of these deals of 10 million dollars, 15-100 million dollars are from there. These are good deals to have, and nice to execute in the short term here.”
“I think it (FY24) wont be that bad, hopefully the situation will improve in the next six weeks. Our job is to execute well on the deals we have contracted, and on the ongoing projects. Make sure that we deliver faster, execute the revenue growth that we need,” he concluded.