Chief Operating Officer NG Subramaniam told ET that there will be consequences for employees who fail to resume work from the office by then. Subramaniam emphasized the importance of work culture and security issues as the reasons behind this decision.
While TCS has shown patience, the company firmly believes that employees need to get back to the office. The final communication regarding this matter has been sent to employees, and those who do not comply will face consequences. Subramaniam expressed concerns about working from home, highlighting the vulnerability it poses to both employees and employers. He mentioned the increased risk of cyberattacks and the lack of control and security measures that can be implemented at home.
The decision to bring employees back to the office is an attempt by TCS to revive its pre-pandemic work culture. The company plans to move away from the hybrid model it adopted during the Covid-19 outbreak, where employees worked both from home and the office. TCS had previously announced that once all employees returned to the office, a fourth of them would work from home by 2025.
TCS Back To Office
During the third fiscal quarter, Infosys, India’s second-largest IT firm, reported a cyber security incident in one of its US units, leading to the unavailability of several applications. HCLTech also faced a ransomware incident in December, although it had no impact on the company.
At the recent earnings announcement, TCS revealed that 65% of its workforce had been coming to the office up to three days a week. Subramaniam emphasized the need to restore the original work culture, citing the negative impact of remote working on employee interaction and organizational growth. He mentioned that during the pandemic, around 40,000 employees joined and left TCS online without any offline interaction, which is not conducive to the company’s success.
TCS witnessed a significant increase in its headcount between April 2020 and October 2023, with over 167,000 new hires. However, in subsequent quarters, the company experienced negative staff additions as it aimed to control high employee costs.
Read From ET | TCS sounds final call for staff
Subramaniam addressed the issues of attrition and employee trust deficit in the IT industry, highlighting the importance of security and confidentiality. He stated that face-to-face interaction is essential for building a talented workforce and making leadership decisions. Remote working, according to Subramaniam, does not contribute to building a strong organizational culture.
TCS reported a high attrition rate of 21.5% in January 2023, which decreased to 13.3% in the December quarter. The company ended the third quarter with 603,305 employees, a decline of 5,680 compared to the previous quarter. TCS aims to return to its normal operating mode by the end of the current fiscal year.
Bringing employees back to the office has become a challenge for the entire IT industry. TCS’ competitors also face similar issues in encouraging employees to return to the office. Most companies have implemented a roster system, requiring employees to work in the office for up to three days.