India’s largest IT company Tata Consultancy Services, or TCS, has announced its results for the last quarter of the previous financial year, where it said that the company has reported a 7 per cent increase in its net profits to Rs 9,926 crore in the fourth quarter ended March 2022. While announcing the results, TCS said that it plans to bring back its employees to deputed locations, after two years of working remotely amid the Covid-19 pandemic that saw three waves in India.
No More Work From Home for TCS Employees?
Addressing a press conference after announcing the results, TCS CEO and MD Rajesh Gopinathan told reporters the the IT giant has asked its senior associates to come back to their deputed locations. Initially, only these senior associates will start going to office for three days in a week beginning in April. TCS expects most employees to work from office by the end of the year, the CEO said, adding that the company will call back more of its staff to their deputed locations over the coming months.
“We are starting with our senior associates, the top 50,000 employees, who will start coming to the office, starting three days a week from this month itself. And then we will continuously increase the coverage of associates who will start coming back. So, sometime during the middle of the year, we should be somewhere in the well on the way to the 80:20,” Gopinathan told reporters.
Gopinathan said it was quite possible to implement the 25×25 model the company had laid out previously. However, it had to be implemented in a structured manner as currently TCS was currently operating at almost like a 95:5 model, he added.
“We need to get back to a more normal model of 80:20 or so, before we start the migration to the 25 by 25 model and hopefully if the trajectory that we are currently seeing continues, we will start accelerating that shift back to the 80:20 model,” the CEO said.
TCS Salary Hikes and Employment
According to a report by news agency PTI, Rajesh Gopinathan said IT giant TCS gave a salary hike of 6 to 8 per cent in FY22 and the company looks to implement similar increments with an upward bias in FY23.
In Q4, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. Employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high. The company hired 1 lakh freshers from campuses in FY22 against the stated target of 40,000 and has set a similar target of 40,000 for FY23 as well, its chief operating officer N G Subramaniam said, adding that it will take a call dynamically on overshooting the number as per the business environment.
TCS reported its highest-ever total revenues of Rs 50,591 crore in the quarter ended March 31. The Tata Group’s cash cow booked revenues of Rs 50,591 crore, its highest ever, in the March quarter, which was 15.8 per cent higher than the same reported in the year-ago period. Gopinathan hinted that the company will be aspiring for double-digit growth in FY23 as well.