Mumbai: Tata Consultancy Services (TCS) has announced a major leadership restructuring, creating five new business units and appointing new leaders across key verticals as the company adapts to the rapid rise of artificial intelligence (AI) and evolving client demand.
The changes were announced through internal memos issued by Chief Executive Officer K Krithivasan and Chief Operating Officer Aarthi Subramanian, according to a Reuters report.
Five new business groups announced
As part of the restructuring, TCS has created five dedicated business groups to strengthen its focus on high-growth markets and specialised services. The new business units are:
- ServiceNow practice
- Travel and transport clients
- Energy and utility clients
- US West Coast business
- Global autonomous businesses
Each of these groups will be led by newly appointed executives as TCS aims to accelerate growth and improve client engagement.
Banking business split into East and West
TCS has also reorganised its largest business segment—banking and financial services in the Americas.
The existing Americas banking unit will now operate as two separate divisions:
- US West Banking, headed by Rakesh Kumar
- US East Banking, headed by Mohan Veeturi
Current Americas banking head Susheel Vasudevan will move into a strategic role reporting directly to CEO K Krithivasan.
Meanwhile, Manmeet Chhabra, who currently leads TCS’s Canada banking business, has been appointed the company’s new Country Head for Canada.
New leaders across key verticals
Apart from the new business units, TCS has appointed fresh leadership across several strategic businesses, including:
- Cybersecurity
- UK and Europe Life Sciences
- Communications and Media
The company also named a new leader for its media vertical as part of the broader organisational overhaul.
AI driving organisational changes
The leadership reshuffle comes as artificial intelligence continues to reshape the global IT services industry.
AI-powered software development, automation and productivity tools are changing the way technology projects are executed, reducing the need for large engineering teams, shortening project timelines and increasing pressure on pricing.
For India’s $315 billion IT services industry, companies are increasingly restructuring operations to capture emerging AI opportunities while adapting to changing customer expectations.
Strong quarterly performance
The organisational changes follow TCS’s better-than-expected financial performance for the April–June quarter.
The company recently reported quarterly revenue that exceeded market estimates, supported by strong spending from banking clients and favourable currency movements due to the weaker rupee.
Banking remains TCS’s largest business vertical, contributing around one-third of its total revenue, while North America accounts for nearly half of the company’s overall business.
Conclusion
The creation of five new business units and the leadership reshuffle reflect TCS’s strategy to position itself for the next phase of growth amid the AI-driven transformation of the global technology services industry. The company is betting that a more focused organisational structure will help it respond faster to client demand and capitalise on emerging business opportunities.