Indian Stock Market Tips- TCS restructures its business units to focus on long-term strategy
Tata Consultancy Services (TCS) has restructured its industry solutions units (ISUs), giving almost 200 employees control of them and quarterly target goals as it looks to free up senior executives to focus on long-term strategy. TCSNSE -0.71 % first broke up its business into smaller units in 2008, a move that helped power growth, with revenue soaring to over $19 billion in FY18 from $6 billion in FY09.
After the company’s second-quarter earnings were announced on October 11, CEO Rajesh Gopinathan said TCS had worked for two years to return to double-digit growth rates and the management would ‘step back’ to look at crafting a strategy for the medium and long terms.
The second round of restructuring will help the company’s topmost executives — from the CEO to the EVPs – focus on delivering future plans. “We actually doubled down on our earlier strategy of ISUs and have created sub-ISUs. We pushed it one level down. We now have about 150 sub-P&L (profit & loss) heads who have been set up the same way the old ISUs were set up,” Gopinathan told ET in an interview.
“Now there are about 200 people who have a direct line of sight into the business. So here and now can be dealt with by that layer, freeing up more senior level talent to look at the medium to the longer term. So we are moving the horizon out.”
The CEO, presidents, and EVPs will focus on creating three- and five-year strategy plans, which could include those for entering new markets and new service areas focused on different customers.
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