TCS plans re-structuring; aims to achieve $50 bn revenue by 2030

IT major TCS is planning to revamp the organisation structure to align with customers more closely, as it aims to achieve USD 50 billion (about Rs 3.89 lakh crore) revenue by 2030, a source aware of the development said on Tuesday.

The company had garnered USD 25 billion in revenue in 2021.

"TCS has now charted its roadmap and long-term strategy to reach the next USD 25 billion revenue. It aims to get to USD 50 billion by the close of the decade," the source told PTI.

The company is planning to create an integrated organisational structure based on 'curated customer journeys'.

"TCS is mulling to create two new business groups that will augment the current structure of industry vertical units and markets, resulting in a new integrated organisational structure," the source informed.

With this new structure, TCS plans to focus on the customer journey, starting from acquisition incubation, growth and transformation.

"In an industry first, the operating model will be aligned to the customer journey at every step - going beyond the traditional three dimensions of the organisation namely geography, vertical, or services. Leaders who have been groomed through the current ISU (industry service unit) structure will be redistributed to lead these new groups," the source said.

At present, TCS has hundreds of ISUs under various divisions to serve customers and the company is planning to provide a single interface to customers for accessing services.

"If TCS has to create new business opportunities then the service has to bring in high touch frictionless fast delivery of services to customers," the source said.

The company, however, will not make any change in the existing customer service and sales teams and external reporting of verticals and geographies will also remain the same.

"New integrated operating model is an ambitious route to redefine the way customer transformation is executed. This new operating model will bring together contextual knowledge, domain and technology through leadership, all the while closely engaging with the customers in their growth and transformation agenda," the source noted.

When contacted, a TCS spokesperson said, "We can't comment on internal business plans or strategies".

TCS revenue was USD 17.3 billion in 2016, which grew to USD 25 billion after Rajesh Gopinath took charge as the company's CEO and managing director in February 2017.

The proposal for organisation re-structuring comes after TCS recently rejigged its North America Business.

In the third quarter ended December 2021, Tata Consultancy Services (TCS) had posted a 12.2 per cent rise in its consolidated net profit to Rs 9,769 crore.

The country's largest software services firm had logged a net profit of Rs 8,701 crore in the year-ago period.