India's largest software exporter TCS has embarked on an organisational restructuring to groom future leaders in testing times for the IT sector that has been hurt by a stronger rupee and the slow down in the US economy.
The company's operations are now split into five verticals -- industry solutions, major market new growth markets, strategic initiatives and organisation infrastructure -- and their heads would report to chief operating officer N. Chandrasekaran. All these groups would have a director at the helm. Under the earlier structure, there were three groups focused on industry, geography and service practices. The restructuring will be effective April.
"As we scale up over 100,000 employees, TCS needs a structure that allows us to build a nimble organisation to capture new growth opportunities. This will create a framework that is scalable for growth across markets and provide focus on strategic initiatives like asset-leveraged solutions, platform-based BPO as well other new initiatives," said S. Ramadorai, CEO and MD, TCS.
N Chandrasekaran, COO, TCS, said: “In the last four months we have identified the key people who will head these new positions.”
In November 2007, Infosys had announced a similar restructuring when the company expanded its senior management team and reorganised its business units in an effort to take on a tougher market and competition.
“There is a need to realign to create a structure that can meet the new challenges, increased customer expectations and higher levels of competition,” Kris Gopalakrishnan, CEO, Infosys, had said.
A CEO of a mid-sized IT company based in Pune said: “Earlier, middle-level employees in TCS did not have the bandwidth to be a part of the leadership team. With this new structure there’s an opportunity not to be lost in this huge company.”