![\"<p>Krithi](\"\/\/www.iser-br.com\/Themes\/Release\/images\/responsive\/ettelecom-default.jpg\")
The 58-year-old executive said the company is “comfortable” with its business model and not perturbed by smaller rival Infosys<\/a> adding more net business over the last few quarters despite being almost half in size. After reporting margins of 24.5% in the fourth quarter of fiscal year 2023, TCS has set a target of 26-28% in the long term while Infosys reported margins of 21%, at the lower end of its guided range. He also said the new operating structure may be tweaked to iron out a few rough edges but definitely doesn’t need a complete overhaul. Krithivasan, who is a Tata Group<\/a> veteran having spent 34 years in the company, tells ET’s Romita Majumdar & Surabhi Agarwal in a wide-ranging interview that he will focus on strengthening relationships with large customers who form a bulk of TCS’ revenues.
TCS has been criticised for growing slower than Infosys despite being almost twice the size. How do you react to this?
<\/strong>
We are very comfortable with our business model. Our model is going to be primarily asset light. We are focused on particular margins and aspirations, so we will work towards that. Of course, the data is right. I cannot contest the data that if somebody has grown faster over a period of time.
Yes, the board will be watching how we do but all of us are comfortable with our business model. We believe we don't have to sacrifice margins. We delivered 24.5% margins in Q4, there were attrition headwinds. Once these headwinds clear, I believe that it is reasonable for us to aspire for the 26-28% range. Everybody has an operating model that they are comfortable with and our model will continue to be like this.
So, you are saying that you will not forego margins for growth?
<\/strong>
Our model will continue to be like this.
What is your long-term vision for TCS?
<\/strong>
I'm not going to give you any grand statement because our focus has always been culture and values which will not change. The fundamental pillars are going to be our customers and our associates. From my immediate priority perspective for the next couple of months, I will meet all our customers, or at least the critical ones, most importantly, the non-BFSI ones who I have not been in touch with. And I need to talk to associates to understand their challenges, if any.
If you look at our overall portfolio, it's primarily weighted in favour of our large accounts. And in those larger accounts, anything adverse has a multiplier effect. So, it's important for us to strengthen the relationship on the personal level and in terms of our broad offerings. Our focus is to ensure that we double down on the new technology services. Ensure that our customers continue to get the value for their investments. The third is around enhancing the customer mind share. In parallel, we continue to focus on building a team for the future. Our associates also have to be upskilled to provide enough opportunity for them to learn and develop competencies in new technologies. These are not just my own priorities but have been the organisation’s priorities for the longest time.
Do you feel that the timing of your takeover at this uncertain time will make the transition more challenging?
<\/strong>
When I take up (this role) is not my choice. We need to do our best. Situation is uncertain, but I won't even call it challenging. I don't look at this as a major crisis at all. To me, this is something short-lived, things will pan out to be normal, I hope. We have had tougher times in the past, like during the financial crisis or the beginning of the pandemic. We thought it was going to be so tough. But we all regrouped and came back stronger. The thing is to focus on staying close to customers, staying relevant for them and offering them with new solutions. And every time a crisis hits, I personally believe we have come out stronger, it has actually provided another impetus for our growth every year. It's a long-term positive and we will have accelerated growth. But it's not based on any specific data points, it's based on our past experience.
There has been some criticism of the recent restructuring exercise, do you feel it needs to be tweaked to make it work better for your clients or employees?
<\/strong>
There are many opportunities for me to improve, I'm not perfect, right? Same goes for the organisation. Organisations are made up of people. On one hand, there is a business structure. But when situations change there are opportunities for tweaking to run faster. So, if I say that we are perfect, and everything is working fine, that would be a lie. But the question is, does the situation call for an overhaul? Or does it call for just a tweak? We believe that there will be some tweaks. I will be meeting our customers and associates. We will implement whatever tweaks are required and there will always be opportunities.
What is your strategy to continue growing in such uncertain times?
<\/strong>
During uncertain times customers are focused on controlling and reducing costs. So, it's important to go to them and tell them proactively, if you do (this) your spend will reduce and that could be spent on your transformation. So, our teams should and will go to the customers and say — these are the opportunities we see, where you can optimise and save and then enrich. That's always been the approach. You will see more optimisation projects for the short term before clients start investing or start transformation.
Do you think the macroeconomic crisis can deepen?
<\/strong>
I am not an economist but I do not expect it to worsen. If you look at the fundamentals of the US market, unemployment is still low despite issues like tech layoffs. And as we saw in the case of Switzerland (Credit Suisse<\/a>), governments will ensure that the banks don't fail. That confidence is there. And thirdly, if you look at what happened, some of the large banks have been beneficiaries of these events as their deposits have increased. They are primarily our clients. So, they are actually in a better position, but we need to see how quickly they get the benefit of this shift.
From a BFSI industry perspective, how significant have the events of the past few weeks with these regional banks in the US and a large global bank collapsing been for the technology services industry?
The direct impact is not very high. From the events the direct impact on our books is immaterial, but it spoiled the sentiment in the market. Like where many customers paused the spending efforts. That will continue for some time and it will take some time to recover. That's what caused the pause.
Have you identified a leader to run the BFSI practice now that you have moved to a larger role?
<\/strong>
I have some thoughts, obviously. We will finalise the candidate fairly quickly. We have a very deep leadership pool. We have always followed the principle of giving the first right of refusal to our internal candidates. So that's the same process we will follow. We'll look at all the internal candidates.
What is your view on employees returning to office?
<\/strong>
Our stand was very clear on the way back-to-office. We want more and more people to come to work. We place a lot of emphasis and importance on what we call the TCS culture and TCS DNA. And we believe that when employees work together with their mentors and leaders they imbibe that knowledge. HR is working very hard. I think close to about 50% of folks are coming at least three days a week. We'll take it up to 70-80%.
<\/body>","next_sibling":[{"msid":99529557,"title":"Microsoft's bid to buy games giant faces triple anti-trust threat","entity_type":"ARTICLE","link":"\/news\/enterprise-services\/microsofts-bid-to-buy-games-giant-faces-triple-anti-trust-threat\/99529557","category_name":null,"category_name_seo":"enterprise-services"}],"related_content":[],"msid":99545803,"entity_type":"ARTICLE","title":"Won\u2019t forego margins for growth: TCS CEO-designate","synopsis":"\"Yes, the board will be watching how we do but all of us are comfortable with our business model. We believe we don't have to sacrifice margins. We delivered 24.5% margins in Q4, there were attrition headwinds. Once these headwinds clear, I believe that it is reasonable for us to aspire for the 26-28% range. Everybody has an operating model that they are comfortable with and our model will continue to be like this.\" ","titleseo":"enterprise-services\/wont-forego-margins-for-growth-tcs-ceo-designate","status":"ACTIVE","authors":[{"author_name":"Romita Majumdar","author_link":"\/author\/479256520\/romita-majumdar","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479256520.cms?width=100&height=100&hid=268","author_additional":{"thumbsize":false,"msid":479256520,"author_name":"Romita Majumdar","author_seo_name":"romita-majumdar","designation":"Staff Reporter","agency":false}},{"author_name":"Surabhi Agarwal","author_link":"\/author\/479241991\/surabhi-agarwal","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479241991.cms?width=100&height=100&hid=268","author_additional":{"thumbsize":false,"msid":479241991,"author_name":"Surabhi Agarwal","author_seo_name":"surabhi-agarwal","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":334,"shares":0,"engagementtimems":1662000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-04-17 08:35:02","lastupd":"2023-04-17 08:35:03","breadcrumbTags":["Tata Consultancy Services","k krithivasan","infosys","credit suisse","TCS","technology news","Tata group","TCS CEO designate","TCS CEO news"],"secinfo":{"seolocation":"enterprise-services\/wont-forego-margins-for-growth-tcs-ceo-designate"}}" data-authors="[" romita majumdar","surabhi agarwal"]" data-category-name="Enterprise Services" data-category_id="915" data-date="2023-04-17" data-index="article_1">
- 企业服务
- 7分钟阅读
不会放弃的利润增长:TCS继任
“是的,董事会将看我们如何做,但我们所有人都熟悉我们的业务模型。我们认为我们不需要牺牲利润。我们在第四季度交付24.5%的利润率,摩擦阻力。一旦这些阻力明显,我认为它是合理的对我们渴望26 - 28%范围内。每个人都有一个操作模式,他们是舒适和我们的模型将继续是这样。”
读到
这位58岁的高管表示,该公司是“舒适”的商业模式,而不是扰乱了规模较小的竞争对手印孚瑟斯添加更多的网络业务在过去几个季度尽管几乎一半大小。公布利润24.5%,2023财年第四季度,TCS已经制定目标,计划26 - 28%在长期印孚瑟斯报道利润率为21%,指导区间的低端。他还说,新的操作结构可能被调整,以消除一些粗糙的边缘,但肯定不需要大修。Krithivasan,塔塔集团经验丰富的公司花了34年,告诉ET Romita Majumdar & Surabhi Agarwal在涵盖内容广泛的采访中,他将把重点放在加强与大客户的关系形成一个散装TCS的收入。
TCS一直批评增长慢于印孚瑟斯尽管几乎两倍大。你如何反应呢?
我们非常熟悉我们的业务模型。我们的模型是主要资产。我们专注于特定的利润率和愿望,因此我们会努力。当然,这些数据是正确的。我不能比赛的数据,如果有人在一段时间内增长更快。
是的,董事会将看我们如何做,但我们所有人都熟悉我们的业务模型。我们认为我们不需要牺牲利润。我们在第四季度交付24.5%的利润率,摩擦阻力。一旦这些阻力明显,我认为它是合理的对我们渴望26 - 28%范围内。每个人都有一个操作模式,他们是舒适和我们的模型将继续是这样。
那么,你是说你不会放弃利润增长?
我们的模型将继续是这样。
你长期对TCS的愿景是什么?
我不会给你任何大的声明,因为我们的重点一直是文化和价值观,不会改变。的基本支柱是我们的客户和我们的同事。从我当务之急的角度在接下来的几个月,我将满足所有我们的客户,或者至少是至关重要的,最重要的是,non-BFSI那些我没有联系。我需要和同事理解他们的挑战,如果任何。
如果你看看我们的整体投资组合,它主要是加权支持我们的大客户。在那些大账户,任何负面的乘数效应。所以,对我们来说是很重要的方面加强在个人层面上的关系,我们的广泛的产品。我们的重点是确保新技术服务上的投入增加了一倍。确保我们的客户继续得到他们的投资的价值。第三是心灵在提高顾客份额。同时,我们继续关注建设一个团队未来。我们的同事也需要upskilled为他们提供足够的机会去学习和在新技术开发能力。这些不仅仅是自己的优先级,但该组织的优先事项的最长时间。
你觉得你收购的时机在这个不确定的时间也会转变更具挑战性?
当我拿起(这个角色)不是我的选择。我们需要做我们最好的。情况是不确定的,但我甚至不叫它具有挑战性。我不要看这是一个重大危机。对我来说,这是短暂的,事情的结果是正常的,我希望。我们过去有过艰难时期,就像金融危机期间或大流行的开始。我们认为这将是很艰难的。但是我们都重新集结,回来更强。问题是专注于保持接近客户,保持相关的他们,为他们提供新的解决方案。每次危机来袭,我个人认为我们有出来更强,它实际上已经为我们提供了另一种动力每年增长。 It's a long-term positive and we will have accelerated growth. But it's not based on any specific data points, it's based on our past experience.
有一些批评,由于近期的组织结构调整运动,你觉得需要调整,让它更好的为你的客户或员工工作吗?
有很多机会让我提高,我不是完美的,对吗?该组织也一样。组织是由人组成的。一方面,有一个商业结构。但当情况改变有机会调整运行得更快。所以,如果我说我们是完美的,和一切工作正常,这将是一个谎言。但问题是,局势呼吁全面改革吗?还是需要调整?我们相信,将会有一些调整。我将会满足我们的客户和同事。 We will implement whatever tweaks are required and there will always be opportunities.
什么是你的策略继续生长在这种不确定的时期吗?
在不确定时期客户的重点是控制和降低成本。因此,重要的是要去主动告诉他们,如果你这花将减少,可以用于你的转换。所以,我们的团队应该会去客户说,这是我们看到了机会,在那里你可以优化并保存,然后丰富。这是一直的方法。你会看到更多的优化项目的短期客户开始投资之前或开始转换。
你认为可以深化宏观经济危机吗?
我不是经济学家,但我不指望它恶化。如果你看美国市场的基本面,失业率仍在低水平,尽管科技裁员等问题。当我们看到在瑞士的情况下(瑞士信贷(Credit Suisse)),政府将确保银行不失败。这种信心。第三,如果你看看发生了什么,一些大型银行已经作为存款增加了这些事件的受益者。他们是我们的客户。所以,他们实际上是在一个更好的位置,但我们需要看到他们得到的好处这一转变的速度有多快。
从BFSI行业的角度来看,有明显的过去几周发生的事件与这些地区银行在美国和一个大型全球银行崩溃的技术服务行业吗?
直接影响不是非常高。从事件直接影响我们的书是无形的,但它破坏了市场的人气。像许多客户暂停支出的努力。将持续一段时间,它将需要一段时间才能恢复。这就是造成了暂停。
你发现了一个领袖运行BFSI实践现在已经搬到更大的作用?
很明显,我有一些想法。我们将很快敲定候选人。我们有一个很深的领导池。我们一直遵循的原则给第一个拒绝我们的内部候选人的权利。这是相同的过程我们会跟进。我们来看看所有的内部候选人。
什么是你对员工回到办公室吗?
我们的立场是非常明确的back-to-office。我们希望越来越多的人来上班。我们大量的强调和重视我们称之为TCS文化和TCS的DNA。我们认为,当员工与他们的导师和领袖共同努力吸收知识。人力资源工作非常努力。我认为接近大约50%的人每周至少三天。我们将把它高达70 - 80%。
评论
现在评论 阅读评论(1)所有评论
找到这个评论进攻?
下面选择你的理由并单击submit按钮。这将提醒我们的版主采取行动