TCS focuses on long-term strategy, restructures its business units.

Tata Consultancy Services Limited (TCS), the Indian multinational information technology service, consulting company has decided to restructure 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.

Earlier in 2008, TCS broke up its business into smaller units, a move that helped the company to obtain power growth, with revenue soaring to over $19 billion in FY18 from $6 billion in FY09.

As about 200 people would now have a direct line of sight into the business, the topmost executives from the CEO to the EVPs will be able to 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,” said Rajesh Gopinathan, CEO, TCS, in an interview with ET.

“Now there are about 200 people who have 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.” he added.

The firm’s CEO, presidents, and EVPs will be creating three- and five-year strategic plans to move forward, which could include those for entering new markets and new service areas focused on different customers.

In the previous restructuring, TCS created 23 mini-CEOs who each ran a $250 Mn unit and was given the task of quadrupling their unit revenue to $1 Bn, the unit size in the current restructuring is different. There are larger verticals for instance; financial services and retail have been split into multiple separate units depending on the type of customer and, in some cases, by geography.

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