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TCS looks at growing digital offerings; goes for structural makeover

May 17, 2017, 11:49 IST
Tata Consultancy Services (TCS) underwent a major restructuring exercise and has reorganised its service lines.
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TCS has also shuffled its business heads and they will report to the new President Krishnan Ramanujam, who will report to TCS CEO Rajesh Gopinathan.

The IT giant is looking at growing its digital offerings. As per Nasscom, digital contributes about 14% of the industry's $155 billion revenues.

"This restructuring will also make us more nimble. We used to have a full services play and now we have a full stakeholder play. We will be able to target our services to the chief marketing officer, the human resources head, not just the chief information officer (of customers),” Ramanujam told ET.

After the structural makeover, TCS has merged all service lines into one mega unit called Business and Technology services which will, in turn, have three main buckets - Cognitive Business operations, Digital Transformation Services and Consulting and Service Integration.

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“We will bring in people with proven experience as well as those who have run smaller business units. This gives career progression to the younger leaders,” Ramanujam told ET.

Gopinathan had hinted about the changes in TCS’ fourth-quarter analyst call. "Our service line reporting conventions date back to more than two decades and we are increasingly realising that this is slightly out of sync with the way services are currently getting consumed or the way customers are engaging with us,” Gopinathan had said.

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