TCS is making use of this COVID lockdown time effectively and is researching on a new 25/25 rule which will put an end to its 20-year-old operating model
According to the new model, TCS is planning to ask 75% of its employees, which is 4.48 lakh of its employees(including 3.45 in India) to work from home by 2025. This is far higher than the current industry average which is 20%. This new model is being called the 25/25 model. There are several advantages to this model. One of the main advantages is that this will require less office space.
In a statement, TCS Cheif Operating Officer NG Subramaniam said that they believe they do not need more than 25% of their workforce in their offices in order to be 100% productive.
TCS took this decision after it is planning to move 90% of its 4.48 lakh employees to an operating model which is being called Secure Borderless Workspaces(SBWS), post lockdown. TCS CEO and MD, Mr. Rajesh Gopinathan have sent an email to employees saying that this new operating model SBWS had seen 35,000 meetings, 406000 calls, and 340 lakh messages across the TCS on the digital collaboration platform. TCS had researched a lot about this model for last few years and believe that it has been stabilized now and ready to implement at a bigger scale.
He also said they believe an employee should not spend more than 25% of their working time in the offices. He further added that for a project only 75% of the workforce will be in an office and the rest will be distributed in various locations.
But this doesn’t mean 25% less number of people in the offices is equal to 25% of less office space. This is not directly proportional. This is due to the shared office spaces and facilities. So a 25% fewer workforce will see a 15% decrease in office space.
With TCS implementing this kind of new model, all other IT firms are going to follow. If this is to be followed, there could be major changes in the IT firms operating model. The situation before the lockdown is quite the opposite, with only 15-20% of the workforce is rarely working from home. Even though the IT firms in the country have one of the best HR services, there are no such flexible policies that allow employees to work from home freely. This could be due to various reasons like security, project regulations, etc. Compared to these, product-based companies like Microsoft, etc have better work from home policies and flexibility.
Experts say that this kind of new model will be very effective in India especially if it reduces the commute time and traffic. The competitors of TCS will also follow this kind of model, if not they will lose the edge over TCS.
TCS CEO says that the scope of this model is bigger than just giving the laptops and access to an employee while working from home. This model aims to develop an extended workforce along with the offices. TCS COO added that implementing this new model did not affect the timelines of the current projects and will not affect any future projects as well. He also said that this model will result in huge organizational benefits. The firms can become more resilient and more agile.
Some other experts feel that even though by this model increases the work-life balance, in the current scenario Indian IT firms do not have tools to do this effectively in the long run. The network issues also contribute a lot to this argument. But recently, there has been stability across all the devices and bandwidth seen during this lockdown.