Bengaluru: Tata Consultancy Services Ltd (TCS) has undertaken its biggest leadership rejig in three years, shuffling about a dozen senior executives across service lines, industry groups and country operations, even as it also reorganized key businesses, according to two executives aware of the development.
The changes, communicated internally on Friday, are aimed at sharpening accountability and reviving growth at India’s largest information technology (IT) services company after its first annual revenue decline since listing in FY26, the executives said, requesting anonymity. The shuffle also comes as TCS grapples with its highest senior management churn since listing in 2004.
Over a period of at least three months, TCS has split some of its largest business groups, carved out new verticals, and reassigned senior leaders to focus on strategic growth areas and its biggest clients.
In response to Mint’s queries on 8 July, a TCS spokesperson said the company regularly reviews and refines its leadership structure and roles as part of ongoing efforts to strengthen the organization, meet evolving business needs and create career growth opportunities.
“These transitions are therefore not related to the performance of the business units and the company. Any speculation in this regard is entirely unfounded and motivated,” the spokesperson added.
Executive reshuffle
One of the most significant appointments is that of Susheel Vasudevan, president at TCS, who will now lead the company's 50 largest clients, each generating more than $100 million in annual revenue. Vasudevan earlier oversaw the Mumbai-based company’s BFSI (banking, financial services, and insurance) business in North America, including the US and Canada, for nearly three years.
BFSI North America has now been split into two divisions: West Coast, overseen by Rakesh Kumar; and East Coast, overseen by Mohan Veeturi. Both are vice-presidents. Kumar and Veeturi were earlier heading the BFSI service units.
Significantly, BFSI is TCS’s biggest revenue-earning vertical, with 32% of its revenue coming from here.
Vice-president Ganesa Subramanian Vaikuntam, who led the company’s cybersecurity business for almost three years, will take over as the head of Life Sciences UK & Europe internal services unit. He will report to Debashis Ghosh as part of this role.
Vaikuntam has been replaced by Kumaranarayanan Kaleeswaran, previously head of the energy and resources business in the Americas. The change comes after a year in which several marquee TCS clients—including Marks & Spencer, Co-op and Jaguar Land Rover—were hit by cyberattacks. TCS does not disclose cybersecurity revenue.
Akhilesh Tiwari has been handed the reins of a new business unit called Autonomous Business Operations. This unit includes BPO work and enterprise business operations.
Last month, the company announced that its Canada country head, Soumen Roy, would head its global capability centre (GCC) unit. Manmeet Chhabra, who headed the BFSI unit in Canada, will now take over as the country head.
Rajnish Palande was announced as the global head of the company's ServiceNow practice. He was previously an internal services unit head for BFSI Americas.
“The role will also carry end-to-end accountability for customer success, the ServiceNow as-customer engagements and the enabling support functions required to scale the practice effectively,” read an email sent by chief operating officer Aarthi Subramanian on 12 July and seen by Mint.
TCS has also formed a US West Coast Business Group to focus on the “world’s most important innovation hubs.” Akhilesh Tripathi will head this new business group.
“Beyond client growth, this unit will play an important role in bringing together technology companies, start-ups, academia, and other ecosystem partners,” the internal email read.
Organizational changes
The reshuffle also included a reorganization of TCS’s business structure. The company will now have nine business segments instead of seven earlier, with their heads continuing to report to CEO K. Krithivasan and COO Subramanian.
Two business groups—life sciences and healthcare; and energy, resources & utilities—were carved out from one, which had all of these combined. The two units generated $3.1 billion and $1.8 billion in revenue, respectively, in FY26.
While Debashis Ghosh remains in charge of the life sciences & healthcare business unit, Sabyasachi Chandra has been put in charge of the energy, resources & utilities business group.
Travel and hospitality have been taken out of the consumer business group, and will be headed by Arun Pradeep Surendra Mohan, who previously headed this unit in Europe, Africa, and Asia.
The consumer business unit, which will now oversee business from retail firms, will continue to be headed by Krishnan Ramanujan. The company gets almost a fifth of its revenue from its consumer business.
All these changes were communicated to the business unit heads by Krithivasan and Subramanian on Friday evening, according to an executive privy to the development, after the management spent the first half of the day discussing the first-quarter earnings with the press.
According to Sushovon Nayak, lead IT analyst at Anand Rathi Institutional Equities, the restructuring reflects TCS’s attempt to improve margins, accelerate growth and sharpen its focus on high-potential businesses.
He added that energy offers recurring revenue, travel is seeing strong momentum, and cybersecurity is emerging as an increasingly important horizontal following the launch of Mythos, making it logical to carve these into standalone units.
Behind the shake-up
Since Aarthi Subramanian became president and chief operating officer in April last year, the company’s operating cadence has tightened, with the CEO and COO conducting regular weekend reviews with business unit heads.
At the heart of the reshuffle is TCS’s struggle to return to growth. Last year, the company ended with $30.02 billion in revenue, down 0.5%, a first full-year revenue decline since it went public in August 2004. The rise of AI has further stoked fears about the future of the IT outsourcing industry.
Still, unlike its peers, including Infosys Ltd and HCL Technologies Ltd, TCS had a very stable senior management team until a few years ago. Senior leaders rarely left the company.
But under CEO K Krithivasan’s three-year stint, TCS has seen its share of senior management exits. The last time the company witnessed such sweeping changes was in August 2024, when TCS’s chair of North America, Suresh Muthuswami, quit. In August last year, TCS appointed another veteran, Amit Kapur, to lead its new AI unit. His elevation was followed by the exit of TCS’s AI Cloud head, Siva Ganesan, in October.
These senior exits come amid a larger exodus in the company. At least 300 of 1,800 senior executives, including principal consultants, vice presidents, and senior vice presidents with over two decades of experience, have quit India’s largest software services provider as of 31 March.
This represents at least 16% churn among senior ranks. The company also laid off over 12,000 employees by March 2026, marking its largest layoff drive.