Tata Consultancy Services (TCS), India’s largest IT firm, recently mandated a full-time return to the office for employees, enforcing a compulsory five-day office workweek. TCS’s Chief Human Resources Officer, Milind Lakkad, emphasized that this decision is aimed at integrating the new workforce with the larger TCS team to help them better understand and internalize the company’s values. While this approach is a means to foster cohesion, TCS is also open to assessing work models and adapting them based on the needs of both customers and employees.
The announcement came during TCS’s second-quarter earnings call, where the company reported a 9% YoY growth in consolidated net profit to INR 11,342 crore, and nearly 8% YoY growth in consolidated revenue to INR 59,692 crore. In constant currency terms, revenue growth reached 2.8% YoY. TCS’s total headcount showed a net decrease of 6,393 employees in the second quarter of FY24, reducing the overall headcount to 608,985. This reduction does not correlate with business demand, according to Lakkad, and is largely attributed to the maturation and increased leverage of employees hired over the past 18 months.
TCS continues to hire, both from campuses and other sources, and trainee hiring remains ongoing. The company has a commitment to honor all offers, even if there may be slight delays. Regarding variable pay, TCS will pay 100% of variable pay to 70% of the workforce, with the remaining employees’ compensation based on their respective business unit’s performance.
TCS had initially informally communicated to employees that they should return to the office five days a week starting from October 1.
