India’s largest IT major, Tata Consultancy Services (TCS) has recently announced its fourth-quarter results for the financial year 2023. The company has also revealed its current CEO and MD, Rajesh Gopinath has resigned and K Krithivasan is the new CEO designate of the company, effective June 1.
While announcing Q4FY23 results K Krithivasan shared his plans on Work from Office and the current status of WFH at the TCS.
Work from Office
Earlier, TCS asked its employees to work in the office for at least three days a week. Both the freshers and experienced professionals employees were asked to work according to the roster.
“Senior leaders of TCS have been working from TCS offices for a while now and our customers are also visiting TCS offices… Your respective managers will now roster you to work from the TCS office for at least 3 days a week,” the company said in the mail.
“Adherence to rostering is mandatory and will be tracked… any noncompliance will be taken seriously, and administrative measures may be applied”, the company mail added.
K Krithivasan has now said that almost 50% of employees are coming to the office thrice a week and that the company plans to take this number to 70-80%.
He said, “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%,” K Krithivasan added.
While highlighting the topic of Economic Slowdown K Krithivasan has placed his views on the same. Additionally, in the reports, he said, “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), governments will ensure that the banks don’t fail. That confidence is there”, he added.
Attrition Rate is Coming Down
Tata Consultancy Services is also focusing on the attrition rate. The Chief Human Resources Officer Milind Lakkad (TCS CHRO) expects the attrition to drop close to 12-13% by H2FY24.
The attrition for every quarter has seen a deep fall to 20.1 percent, continuing its downward trend from last quarter’s. TCS has reported attrition in Q3FY23 stood at 21.3 percent, a slight decline from 21.5 percent in Q2FY23 on a last-twelve-month basis.
Milind Lakkad said, “We want to go down to our original levels. So 12-13 percent is the band that we are comfortable with… I know my numbers will really come back close to this range.”
“We expect to reach pre-pandemic number levels in the second half of this year”, he added.
The company added 22,600 employees during FY23. There has been a steep decrease as compared to its net addition in FY22. In the previous year, it had added 103,546 employees on a net basis.
The hiring is down by 78%. This is the company’s lowest net headcount addition since FY15 when it added 19,000 employees on a net basis during the year.
