Covid effect? Only 25% of TCS workforce to work from premises by 2025

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Published: May 21, 2020 4:45:30 AM

Gopinathan said that while maintaining stringent security controls, the company has pivoted a new operating model that it calls ‘Secure Borderless Workspaces’ (SBWS).

The March quarter was a mixed one for TCS.The March quarter was a mixed one for TCS.

In the next five years, only 25% of Tata Consultancy Services (TCS) employees will need to work out of its facilities at any given point in time, said Rajesh Gopinathan, CEO and MD of TCS, in his letter to shareholders, in the company’s annual report for the year 2019-2020.

Gopinathan said that while maintaining stringent security controls, the company has pivoted a new operating model that it calls ‘Secure Borderless Workspaces’ (SBWS).

The Secure Borderless Workspaces model is an extension of the Open Agile Workspaces framework that powered the innovative Location Independent Agile model that the company pioneered two years ago. “It leverages all our prior investments, and incorporates the learnings and best practices around network management, a standard service delivery environment, cloud-enabled governance processes, heavy use of digital collaboration tools, and an internal Security Operations Center benchmarked to the best in the industry,” he said.

He said that even though SBWS is in its early days, the outcomes from the new model have been impressive. “Our cloud-based project monitoring system has been tracking the progress of over 23,000 ongoing projects on a real time basis,” he said.

Calling SBWS the future of work, Gopinathan said that the company’s customers are comfortable with this model and in fact want the company to take on more work that the “others are not able to handle”.

“This has given us the confidence to come out with a bold new Vision 25×25. We believe that by 2025, only 25% of our associates will need to work out of our facilities at any point of time; and every associate will be able to realize their potential without spending more than 25% of their time in a TCS office,” he said.

While announcing the results for the recently ended fourth quarter, the management of TCS had said the Covid-19 pandemic had hurt the software major’s business, but was hopeful it would be back where it had been before the outbreak by Q3FY21.

Gopinathan said that the near-term impact on the revenue side of what is unfolding around is comparable to global financial crisis and its peak impact is going to come in the next quarter. “As we look forward beyond that, assuming that the peak is in Q1, we have modelled it that we should get back to where we were in Q3FY20 by the time we get to Q3FY21. Exit rate of Q4FY21 will be similar to where we are in Q4FY20 and immediate periods will be fairly uncertain, if I were to look at the worst case scenario” he said.

The March quarter was a mixed one for TCS. The consolidated net profit for the three months of January-March remained flat at Rs 8,049 crore. Revenues at the country’s biggest software services exporter stood at Rs 39,946 crore, flat compared to the December quarter. The company’’s constant currency (CC) revenue growth was 3% on a year-on-year basis.

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