On Monday, Tech Mahindra announced that it is in discussions with its clients to allow 25-30% of its employees to continue to Work from home. This could be at least until the end of this fiscal year. Mr. Manoj, the CFO of the company has also said the company is building a new command control system to track the productivity of the employees and the revenue of the company. This new application is already in its beta stage and is currently used by the company, he added.
He further said that the company can easily accommodate 25-30% of its employees to continue working from home in this current financial year. Even the customers are also encouraging the employees to work from home. He also added that the company is working with its clients to create an effective model to allow its employees to work from home. This could easily take 1-2 quarters to finally have a feasible model.
He also said that the main intention is to get to know what is happening in work from home or work from client and collectively track the income and productivity.
Tech Mahindra currently has around 94% of its total 125,000 employees working from home due to the lockdown imposed by the government. The CFO also mentioned that the main reason to have a command control system is to make the quality management system completely online and real-time rather than relying on the manuals and documents. He said, however, the company has to consider privacy issues while working from home.
While having the post-earnings conference call with their analysts, the company is looking at various strategies to reduce costs. Some are to allow its employees to work from home, and reduce the subcontractors’ cost, etc. The company also currently has put a pause on the bonuses.
The company is eagerly looking forward to implementing this model with the benefits that are clearly being seen such as the costs have been dropped to 3% of the overall revenue to 16% previously before the lockdown, in previous quarters.