Though surprised at the change of guard at Tata Consultancy Services (TCS), analysts believe that CEO-designate K Krithivasan, currently global head – banking, financial services and insurance (BFSI), who will take over from CEO and MD Rajesh Gopinathan later this year, is the right man for the job.
Analysts at Kotak Institutional Equities wrote in a report that given the size of the portfolio handled by Krithivasan, they would not have been surprised if he had “been a key candidate for CEO role in 2017”.
They pointed out that Krithivasan handles a large portfolio of $11 billion and grew it in a consistent manner.
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The TCS stock closed Friday’s session virtually unchanged at Rs 3,178.95 apiece on the Bombay Stock Exchange.
Analysts at ICICI Securities expect the transition to be a smooth one. They noted that Krithivasan has been with the company for 34 years, serving various customer-facing leadership roles and heading the largest industry vertical, BFSI.
“This appointment is in line with TCS’ strategy of succession planning well in advance and grooming internal employees to take on leadership positions,” they observed.
Analysts at Nuvama said they believe TCS is a well-oiled machine, and has a long history of seamless transitions at all management levels.
“Most of its leadership positions have been held by TCS veterans who have risen through the ranks. BFSI is the largest segment within TCS, contributing over 30% of revenue in Q3FY23, which makes Krithivasan the natural and perfect choice for the role,” they said.
Additionally, Gopinathan will also be available to support the transition over the next six months.