The Indian IT sector, valued at $245 billion, experienced a difficult year in 2023. As global macroeconomic volatility persisted, clients reduced their budgets, putting added pressure on IT companies. However, the sector also witnessed significant top-level management changes during this time. Let’s take a closer look at some of the key developments that shaped the industry.
One of the biggest and most abrupt exits in recent times was that of Rajesh Gopinathan, the CEO of Tata Consultancy Services (TCS). After a remarkable 22-year stint with the company, Gopinathan decided to resign in March. While the exact reasons for his departure remain unclear, Gopinathan left to pursue other interests. Under his leadership, TCS saw a substantial increase in its share price, rising over 160%.
Following Gopinathan’s resignation, TCS appointed K Krithivasan as his successor. Krithivasan, who had been with TCS for more than three decades, had previously served as the President and Global Head of the Banking, Financial Services, and Insurance (BFSI) vertical. BFSI is one of TCS’s largest and most significant revenue contributors, making Krithivasan’s appointment crucial for the company.
Similarly, Infosys, another major player in the Indian IT sector, experienced a significant leadership change. Mohit Joshi, the President of Infosys, resigned after a remarkable 22-year tenure with the company. He was later appointed as the Managing Director and CEO of Tech Mahindra, while CP Gurnani, Tech Mahindra’s long-standing leader, retired from his post. Joshi had been responsible for overseeing the financial services, healthcare, and life sciences businesses at Infosys, and his departure marked another loss for the company.
Jatin Dalal, the Chief Financial Officer (CFO) of Wipro, also decided to step down from his position and join rival company Cognizant. Wipro took legal action against Dalal, filing a complaint and seeking damages of Rs 25 crore for alleged breach of a non-compete clause. Dalal had been with Wipro for 21 years before his resignation. The legal battle between Wipro and Dalal continues, with the next hearing scheduled for January 3.
Infosys faced further challenges when its Chief Financial Officer, Nilanjan Roy, resigned to pursue personal aspirations. Roy’s departure added to the leadership crisis at India’s second-largest software exporter. Jayesh Sanghrajka, currently the Executive Vice President and Deputy CFO of Infosys, was named as Roy’s replacement. With over 25 years of experience in finance, including 18 years at Infosys, Sanghrajka is well-equipped to take on the role.
Lastly, Puneet Chandok, the President for India and South Asia at Amazon Web Services (AWS), resigned from his position and later joined Microsoft India as the Corporate Vice President. Chandok had previously held senior roles at McKinsey in India and Asia and had a strong background in technology.
Overall, the Indian IT sector faced numerous challenges in 2023, including budget cuts by clients and major top-level management changes. These developments have had a significant impact on the sector and its key players.
