Discussion at Tata Group to engage outgoing TCS CEO Rajesh Gopinathan in advisory role

Tata Sons and TCS declined to comment on the development.

Tata Group sources, who did not wish to be identified, said there have been preliminary discussions between the two as the group needs reliable and experienced hands with its diversification into various technology domains.

“Chandrasekaran has discussed with Gopinathan for his engagement with Tata Group in an advisory role after his notice period ends on September 15. There has been preliminary discussion,” a source at one of Tata Group technology firms said.

During a press conference a day after his surprise resignation, Gopinathan said he has no immediate plans to engage with Tata Group in advisory roles.

“As far as advisory roles go, my respect for advisors is exponentially growing. So, I will see whether something comes out of that. But as of now no plans,” he had said.

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Chandrasekaran, who has worked with Gopinathan for almost 25 years, appreciates the contributions the latter has made to the growth of TCS. During Gopinathan’s tenure TCS added over $10 billion in incremental revenues and over $70 billion increase in market capitalisation.

He also helped TCS cross a trailblazing net profit mark of Rs 10,846 crore in the third quarter of the current fiscal year. Under his leadership, TCS’ brand value increased by 212% to $45.5 billion in the past two years.

Gopinathan’s ops model

ET reported on March 20 citing several sources in the company and industry experts that a new operating model mooted last year by Gopinathan may have caused ‘unrest’ among some employees of the country’s largest software services exporter.

The link between the restructuring and Gopinathan’s sudden exit, however, cannot be clearly established, analysts and insiders said. In a surprise move, Gopinathan announced his resignation from the company after a six year stint as CEO and a 22­ year career at TCS.

He is the only TCS CEO to ever quit and had another four years of his tenure as CEO remaining. Insiders also said that despite some “negative feelings”, the new structure had a buy­in from the company’s Board and from Tata Sons’ chairman, it was a work in progress and was doing well despite some teething troubles.