30% of Tech Mahindra will soon WFH permanently

The CEO of Tech Mahindra says that 30% of Tech Mahindra will soon WFH permanently. The company recently announces its quarterly results. During the press release, the CEO announces this company’s decision

30% of Tech Mahindra will soon WFH permanently

He also says that currently, 90% of its entire workforce is working from home. Also, all of their customers are quite happy with the employees of the company meeting their expectations.

The CEO also says that under these circumstances, at least for 1-2 quarters there will be fewer people working from offices. In the initial phases of working from home, business process services teams faced some difficulties

The company also invested in an integrated command line to put in the mitigation plans. The peers of Tech Mahindra are also looking to implement the mixed work models

Some companies like HCL says that WFH may not be a permanent model for them. The Chief Human Resources Officer of HCL says that WFH is not suitable both physically and mentally for longer durations

Read more: 11000 employees resigned from top Indian companies in the last 90 days

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11000 employees resigned from top Indian companies in the last 90 days

Due to the impact of COVID, 11000 employees resigned from top Indian companies in the last 90 days. This is the first in recent times when the employee count of these top companies reduce drastically

11,000 employees resigned from top Indian companies in the last 90 days

Although, these companies are hopeful of hiring in the upcoming days

In the April-June quarter, India’s largest software company TCS lost 4786 employees. In the same quarter, 3138 employees resign from Infosys. While the numbers at Wipro and Tech Mahindra are at 1082 and 1820 respectively.

A cumulative of around 11,000 employees resign from all these companies. Mr.Pravin Rao, the COO of Infosys says that currently the company has stopped hiring but it already has recruited around 5000 laterals around the world.

All these new recruits are onboarded remotely. Infosys also says there are plans to bring around 20,000 freshers this year.

Meanwhile, at Wipro, CFO says that the company has enough talent for its projects. He also says that the company always looks for revenue and if there is a need to hire new talent, the company is going to hire

Also, read: Swiggy announces that more job cuts are happening

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Also, read: Google extends work from home until next June
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Indian companies lack empathy: Ratan Tata

The head of Tata Group, Mr.Ratan Tata says that Indian companies lack empathy as they layoff employees in these pandemic times. He also says that it is a knee-jerk reaction to layoff employees

Indian companies lack empathy: Ratan Tata

In an interview, Mr.Ratan Tata says that the top leadership of these companies does not have empathy for its employees. In his own words “These are the employees who worked for you. These are the people who have served you all their careers. You send them out to live in the rain. Is that your definition of ethics when you treat your labor force that way?”

This pandemic has brought several losses to the Tata group. But still, these companies did not layoff any of its employees. Across the nation, several companies fired their employees due to lack of revenue

However, the salaries of the top officials at the Tata company are cut by 20%. Almost all the Tata group companies belonging to Airlines, Hotels, Finances, have incurred several losses

But they did not fire any of their employees till now. Mr. Ratan Tata says that if the company is not sensitive to its people, it cannot survive.

He further says that while everyone is chasing profits, if you are not ethical to your employees, there is no point. Business is not always about making money. Sometimes it’s about being ethical to your own employees

He also says that the important thing right now is to not shy away from making difficult decisions.

Also, read: Zoom plans to open a technology center in Bangalore

Ratan Tata was asked about the thing he missed the most during this lockdown. His response was ” Itโ€™s not been yachts, manors, and huge estates. Itโ€™s been a wonderful experience of interacting with people who stand for the same ideas as you do… thatโ€™s something Iโ€™ve come to miss “

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Which IT firm has the highest number of H1B employees?

Recently, US President Donal Trump announced a ban on H1B visas and green cards, until the end of this year. This led to companies looking to hire local talent. Let’s see which IT firm has the highest number of H1B employees

Which IT firm has the highest number of H1B employees?

Currently, there are 76,649 Indian employees working in IT firms. This includes TCS, Infosys, Wipro, Cognizant, HCL, etc.

The visa ban will not affect the current visa holders but it might lead to an increase in the rejection of the renewal rate. In 2016, the rejection rate is around 4%. It increased to 21% in 2021

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TCS is the largest holder of total employees compared to other Indian IT companies. The overall count is 54,874. Of the 40% are on visas and rest are local talent. In the visas segment, 90% are under H1B visas and rest are under L1 visas

Infosys has an overall strength of 36,228 employees working for them in the USA. Out of these, 21,737 are local staff. Just like TCS, Infosys also has 40% of the employees under visa

Cognizant also depends highly on the H1B visas. 50% of its workforce works under H1B visas. Of them, 90% are of H1B visa candidates and the rest are of L1 visas

Meanwhile, Wipro and HCL are less dependent on the visas. Only 35% of its staff work with visas. Of them, 90% are working under H1B visas and rest are L1 visa candidates.

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Infosys’s 33% staff to WFH permanently in the future

Infosys says that 33% of its staff will WFH permanently, in the future. Once the situation improves, 50% of its employees will start coming to offices. Rest of all will continue to work from home

Infosys's 33% staff to WFH permanently in the future

Gradually, Infosys looks to maintain 66% of people working from offices and 33% working from home. This might be a permanent work model for Infosys in the near future. The executive vice president and head HR of Infosys Richard Lobo announced this plan

Also, Infosys wants to rotate the people who are part of work from home. Not always the same set of people will work from home and it keeps on rotating.

Also, read: Infosys signs climate-pledge by Amazon

According to the current numbers, if 33% of the employees will start working from home it will be around 80,000 people. These are the ones who will work from home permanently.

Infosys did not commit any timeline to implement this plan. Mr.Lobo believes the timeline for implementation entirely depends on the Covid-19 recovery

Infosys believes that this work from the home model is not that tough to implement and many companies have already successfully done it. Also during the corona lockdown, this implementation is done by several companies

After the Q4 results, Infosys’s COO announced this same thing. He reiterates that there is no decrease in productivity during the lockdown, even though most of the employees are working from home

Also, read: Increase in expenses during WFH: TCS

Earlier, TCS announced that by 2025, 3/4th of its workforce will work from home permanently.

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Increase in expenses during WFH: TCS

Contrary to cost-saving, TCS has observed an increase in expenses during WFH. Tata Sons chairman, N Chandrasekaran said that this is due to the long term lease contracts that were signed with the buildings.

He also added that in the current situation it is all expenses for the TCS rather than income. This was announced during the annual general meeting. It was the first virtual gathering of all the stakeholders by any Indian corporation.

Increase in expenses during WFH

The TCS spokesperson also added that this new work arrangement is not a stop-gap response to the COVID by TCS. TCS observes the current trend and takes the decision accordingly. It is also making significant new investments.

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Chandrasekharan also said that TCS does not have any plans for acquisitions this year. This is related to the questions asked about the cash-heavy reserves of TCS. He also added that TCS observes the acquisition situation carefully. Though they have high cash reserves they tend to be more disciplined in these situations.

Instead, they are looking to improve existing businesses across various segments rather than acquiring new ones.

CEO of TCS, Mr. Rajesh Gopinathan said that since FY2016 the company has created unprecedented revenue for its stakeholders. In the last 5 years, the company has paid its stakeholder’s Rs.112,422 crores in terms of dividends and buybacks.

TCS is proud of this achievement due to no other Indian company achieving this mark. TCS has declared a dividend of Rs.6 per share taking its overall equity share to Rs.73 in this financial year. This includes special dividends as well. This year, the total payout was at Rs.31,895 crores.

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Changes in Maternity leaves and work timings as WFH becomes a new norm for the IT industry


With the widespread of COVID, many changes have happened in the IT industry. Some are in favor of the employees, and some aren’t. The latest change to happen is for maternity leaves. According to human resource consulting firms, a complete overhaul might happen to the maternity leaves along with maternity benefits at workplaces offered by the company.

Firms are now evaluating not only just the leaves but are also re-considering the insurance policies, safe hours for calling, working hours, a suitable time to e-mail or contact the person, etc. All the work-related issues are now being considered for a change.

HR consulting firms believe that the change in the work culture, especially from offices to homes right now, companies will now try to understand how the liabilities are going to get affected. Chief Executive of Avantis Regtech has spoken about this, saying that Leave policies, number of official holidays, national holidays, number of hours of work, maternity benefits, and overtime calculation are some of the things expected to be changed as part of this overhaul. Also, he further added that the companies are now beginning to think about the long term implications of work from the home model which has become a new norm these days.

With the future uncertain due to this spread of the virus and multiple lockdowns, several companies have asked their employees to WFH at least till August. One of the tech giants of the country, TCS recently said that it expects at least 75% of its employees to permanently Work from home by 2025. With this announcement by TCS, multiple other tech companies in the country might follow this model, but not in those large amounts. NASSCOM has recently said that companies are now considering a phased approach of allowing only 15-20% of their employees in the offices until June.

If an employee works from home, the average spend on the employee by the organization which includes logistics, transportation, canteen, maintaining premises, etc will be reduced which accounts for 60-65% of the cost of the organization. With this much amount being saved if employees work from home, the organization can look to invest that money in other areas where the returns could be much higher or for the benefit of its employees.

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Companies looking to add more work from home clauses with their clients’ post-COVID


Many of the tech giants in the country and software service exporters like TCS, Wipro, HCL, Cognizant, have moved most of the Indian engineers to abroad/onsite to debug technology issues or to co-innovate

But with these situations like lockdown, these companies have learned a lot and are modifying the entire IT work culture. These companies are looking to add more work from home clauses in their contracts agreement with their clients while taking up the projects.

Peter Bendor Samuel, the chief executive of IT consultancy group Everest, has said that in further projects it is highly likely that more work from home clauses are to be added to the Master Service Agreement. The process of working from home and different models of working from home has been a revelation to both clients and the companies and is looking to include this further in future projects as well. He also further said that the Covid-19 outbreak has decreased the demand for talent as well as freed up additional talent in US, Europe. After this lockdown, it can be expected that more work will be shifted towards onshore and away from IT service companies

The companies also believe that more people working from home would also free talent onsite especially in countries like the USA, Europe.

TCS already had come up with a plan in which 75% of its employees will work from home in the near future. However other companies still feel it is early to conclude anything on this model as they feel there are several models to explore.

Chief Human Resources Officer at Wipro, Mr. Saurabh Gill has said that there are various discussions and analysis happening in adopting these kinds of models, whether to have a set of employees work from home permanently, etc. However, he said that the main idea for an employee to be sent onsite is to be closer to the customer.

Ray Wang, chief analyst at Constellation Research has said that several vendors are using this work from home option as an upsell and some others are using it to wind deals. Analysts also feel that even if adopting these models will not give encouraging results immediately, in the longer-term they will yield better results with the costs cutting in various departments Logistics, travel, office space, etc.


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Indian IT firms are planning to reduce the dependency of subcontractors to control costs


As the COVID-19 is causing problems with revenue and margins fo the firms, Indian IT firms like Infosys, Wipro, TCS, MindTree are looking to reduce their dependency on the subcontractors to control the costs. According to a statement, these companies said that the subcontractors’ cost might reduce in the upcoming months. As of now, around 10-15% of total employee costs will be the value of a subcontractor.

Over the last few years, the subcontractors’ cost has increased due to the fact that companies are preferring to look elsewhere to hire people instead of looking at the inhouse talent they have.

Mr. Milink Lakkad, the Global Head at TCS has said they are looking to reduce these subcontractors’ costs in order to keep the costs under control. He also added that they will continue to build the talent from within the organization and lateral hiring will be done in a limited manner.

Last year, 13% of employee cost is the value of subcontractors at TCS. At Wipro, it is 22%, while at Infosys it is 12%. The subcontractor’s value at MindTree is at 11% of total employee cost.

The Chief Human Resources head at Wipro has said that they are evaluating all the supply chain of employees which also includes hiring, subcontractors, bench. He also said that there are multiple contractors working with them and it is going to cost them. Hence they are looking to replace them with their own pool of employees.

Infosys CFO also addressed the same in cutting subcontractors’ cost to optimize the overall costs. MindTree is also looking to follow the same. These companies are cutting the subcontractor’s cost in multiple ways. One way is to reduce the number of contractors associated with them, other way is to ask the contractors to take rate cuts and the final way is to ask the contractors to take deferred payments.

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Lowest in the decade. IT companies might record their lowest revenue in this decade


Various factors like cutting down on discretionary spending and slowing down on demand could cost the revenue of IT companies to a greater extent. With the current situation being bad many IT companies like Infosys, Wipro have said that they will not be providing revenue growth guidance for the financial year 2021 and the June quarter. Along with these companies, Cognizant also refrained itself from revenue growth guidance for the full year.

The revenue pressure will be high on the IT company for the year 2020-21, according to a rating agency Crisil. This could be due to Covid-19. The growth could be very low, around 0-2% which is way less than in the 2018 fiscal year. This analysis is done on the largest 15 firms which contribute to the 70% revenue of the sector.

Analysts predict that this COVID slowdown will have a huge impact on various sectors and across different industries. Emkay Research has said that even though there is no blow-up yet for any organization, the disruptions across various verticals could result in a huge loss for the Indian IT companies.

TCS CEO and Wipro CEO recently had said that due to this COVID, there could be price re-negotiations between the companies and the clients. Typically, the deals between companies and the client most probably happen between March and May. But this time, during that period the clients are focused on cutting the emerging business risks and defer the discretionary IT spend. Analysts also said that for certain areas in IT such as cloud, virtualization, etc the demand had increased post lockdown. Several experts and top VPs of various companies believe that any product which helps the client to move their work more towards remote will be of huge demand.

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