July 13 (Reuters) – Tata Consultancy Services (TCS.NS), announced a top-level leadership reshuffle and formed five new business units focused on growth in the U.S. West Coast market and its ServiceNow (NOW.N), practice as AI threatens to disrupt the $315 billion Indian IT sector.
The announcements were made through a series of memos from CEO K Krithivasan and COO Aarthi Subramanian on Sunday, seen by Reuters.
The banking and financial services Americas unit will be split in two with company veterans Rakesh Kumar and Mohan Veeturi heading the U.S. West and U.S. East banking units respectively. Current U.S. banking head Susheel Vasudevan will move to a strategic role reporting to the CEO, according to one of the memos. Local newspaper Mint reported the development first.
Banking is the Tata Group company’s largest vertical, accounting for a third of overall revenue while North America accounts for nearly half. Manmeet Chhabra, who currently heads the Canada banking unit, will take over as the country head for Canada.
TCS also announced the creation of five new business groups: the ServiceNow practice, travel and transport clients, energy and utility clients, U.S. West Coast, and global autonomous businesses, each with their own new leaders. It also appointed new leadership to the cybersecurity, UK and Europe lifesciences and communication and media verticals.
The moves come in a period when AI is seen as a disruption risk to India’s $315 billion IT services industry, through reducing demand for engineering teams, shortening project timelines and squeezing prices as clients seek a share of productivity gains.
Last week, the IT services exporter beat quarterly revenue estimates for the April-June period, helped by higher spending by banking clients and weakness in the rupee.
Reporting by Sai Ishwarbharath B and Haripriya Suresh in Bengaluru; Editing by Ronojoy Mazumdar.
