India’s largest IT services provider Tata Consultancy Services (TCS) said on Thursday Rajesh Gopinathan will resign as chief executive officer, just a year into his second five-year term at the helm of the company.
The company named K Krithivasan as CEO-designate, effective March 16, and said he will take over as CEO and managing director in the next financial year, subject to shareholders’ approval. He joined TCS in 1989 and has held various leadership roles in the company.
The move comes as the Indian IT industry faces a challenging macroeconomic environment in its key markets of Europe and the United States while also coming under renewed focus because of its big exposure to the U.S. banking sector, which is currently experiencing a financial crisis.
The company said Gopinathan — who was re-appointed last year as the Indian IT behemoth’s CEO till 2027 — will leave TCS to pursue other interests.
Gopinathan has been with TCS since 2001 and has held multiple leadership positions, including that of chief financial officer.
Under his leadership, TCS shares have nearly tripled, revenue has almost doubled and profit has risen about 60%, as of last quarter.
Meanwhile, rival Infosys is also facing top level attrition, with five senior level retirements or exits over last one-and-a-half years.
TCS shares, which have lost about 2.2% so far this year, closed down 0.4% on Thursday.