65% employees back in office 3-5 days a week after TCS ended WFH: CEO

K Krithivasan, CEO and MD of Tata Consultancy Services (TCS), has expressed confidence in the success of the company's return-to-office policy, stating that it has played a crucial role in maintaining TCS' organisational culture. Speaking to Moneycontrol at the World Economic Forum (WEF), Krithivasan revealed that approximately 65 per cent of TCS associates are now attending the office 3-5 days a week, just a quarter after the implementation of the policy, setting TCS apart from its industry peers.

Krithivasan emphasised that the primary objectives behind the "return to office" approach are to ensure associates receive the best value and to preserve the "organisational culture". Krithivasan expressed optimism that, with the positive incentives provided, a majority of employees will be back in the office within the next couple of quarters.

This marks a significant shift from TCS' earlier 25X25 vision announced in 2020 by former CEO Rajesh Gopinathan. According to the plan, by 2025, only 25 per cent of TCS associates would be required to work from its facilities at any given time, with employees spending no more than 25 per cent of their time at the workplace.

In October 2023, TCS ended work from home for most of its employees, asking them to return to the office for five days a week. To help transition employees who had joined the company over the pandemic, the company also issued dress codes for employees coming to work.

In the third quarter ending December 31 (Q3), TCS experienced a sequential decrease in headcount by 5,680, marking the second consecutive quarter of decline. The Q2 headcount had decreased by 6,333 employees quarter-on-quarter.

TCS' attrition rate saw improvement, dropping to 13.3 per cent in Q3 from 14.9 per cent in Q2. Krithivasan addressed whether this decline was due to over-hiring or automation, explaining that it was a combination of both factors. Denying claims of "over-hiring", Krithivasan stated that they hired as per market demand, and now they are able to internally deploy employees to replace ones that leave.

TCS reported its Q3 earnings on January 11, with a net profit of Rs 11,058 crore, marking a two per cent year-on-year (YoY) increase. Consolidated revenue rose four per cent YoY to Rs 60,583 crore. The operating margin expanded to 25 per cent, up from 24.3 per cent in the previous quarter. TCS' deal total contract value also stood at $8.1 billion.