The remote-working model, adopted following the outbreak of the coronavirus pandemic, seems to have not affected productivity in the Indian IT services industry.
Tata Consultancy Services (TCS) has continued to report higher profits quarter after quarter, despite that more than 96 % of its employees are working from home.
TCS net profit jumped 7.2% in the fiscal quarter ending 31st December 2020. The Mumbai, India-based IT services giant has made it clear that remote-working had not “impacted its productivity at all”.
“I am also working from home. There is no impact on productivity,” stated the company’s Chief Operating Officer Ganapathy Subramaniam, after the company announced its quarterly results earlier this week.
TCS has employed more than 469,261 people around the world. Considering the statement by its COO, more than 450,000 employees are currently working from home.
Not just TCS, most of the Indian IT providers, a large majority of whose employees are working from home, are reporting higher profits.
Infosys, for example, has posted US$700 million in net profit for the fiscal quarter, while Wipro’s profit jumped by 21%.
Analysts attribute the profit to the rising demand for digital services, cloud computing in particular, rather than the work-at-home model.
Most of these IT providers have been saying that they would close some of their offices and that more than 50% of their employees would continue to work remotely even after the pandemic disappears.