TCS Leadership Reshuffle: 5 New Business Units Formed to Combat AI Disruption
Tata Consultancy Services has implemented a major leadership reshuffle and launched five new business units to counter AI-driven disruption in the IT sector. By splitting its Americas banking unit and appointing new leadership across key verticals, the company aims to sustain growth in vital markets.
Tata Consultancy Services has announced a significant top level leadership reshuffle alongside the formation of five new business units. This strategic pivot aims to accelerate growth in the US West Coast market and enhance its ServiceNow practice as artificial intelligence continues to disrupt the USD 315 billion Indian IT sector.
As per a report by Reuters, these announcements were conveyed through a series of memos issued by CEO K Krithivasan and COO Aarthi Subramanian on Sunday. The banking and financial services Americas unit is set to be divided into two distinct teams, with company veterans Rakesh Kumar and Mohan Veeturi appointed to lead the US West and US East banking units, respectively. Current US banking head Susheel Vasudevan will transition to a strategic role reporting directly to the CEO.
Scaling New Business Units for Growth
The restructuring highlights the importance of the banking vertical, which currently accounts for one third of the company's overall revenue. North America remains a critical market for the firm, contributing nearly half of its total income. Manmeet Chhabra, who currently oversees the Canada banking unit, has been named the country head for Canada to further consolidate regional operations.
In addition to the banking split, the company has established five new business groups. These include the ServiceNow practice, travel and transport clients, energy and utility clients, US West Coast operations, and global autonomous businesses. Each of these units will be managed by newly appointed leaders, ensuring a focused approach to these emerging opportunities.
Adapting to AI-Driven Industry Shifts
The firm has also introduced new leadership appointments across its cybersecurity, UK and Europe lifesciences, and communication and media verticals. These structural changes arrive during a period of intense transformation, as artificial intelligence poses a notable disruption risk to the USD 315 billion industry. The technology is driving changes by reducing demand for large engineering teams, shortening project timelines and squeezing pricing structures as clients increasingly seek a share of productivity gains.
Despite these challenges, the IT services exporter recently reported strong performance, beating quarterly revenue estimates for the April to June period. This success was driven largely by increased spending from banking clients and the continued weakness in the INR, which favoured export earnings.
(The above story first appeared on LatestLY on Jul 13, 2026 11:59 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).