Paul is an outsider (a non-TCS), and sometimes it is safer to hire a top executive from outside

ZEE BUSINESS BEST B SCHOOL SURVEY

... but then, so do outsiders!

This is a sustaining transition. In other words, TCS is in a relatively good shape in an ugly market and this typically means that the management wants a sustaining manager, who will continue with what has been a successful strategy and not a disruptive change agent. This is what they will most likely get with Chandrasekaran. With him, TCS appears to showcase both strong succession planning and good grooming for the intended new top chief executive.

The second contender for the top job is Vivek Paul. Undoubtedly, Paul has a great personality and has lots of experiences also. Paul is more competent, but less likely to take the job actually. I think he is a very strong player, but probably too wealthy and smart to take this position. Government interference will be high and the effort, even without that, would be very difficult. He is smart enough to know that the personal risks of this job probably significantly exceed the personal benefits. Paul is an outsider (a non-TCS), and sometimes it is safer to hire a top executive from outside, for an outsider is more likely to take actions that need to be taken that an insider would avoid. He also avoids the taint that an insider would carry.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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