Indian IT services giant TCS says it has not been able to save cost from the work-at-home arrangement that it adopted following the coronavirus outbreak.
“(So far) it is only an investment, not a cost-cutting measure,” said its former CEO Chandrasekharan, who is currently the chairman for Tata Group. That is because the IT provider cannot cancel the leases it signed for its facilities.
“In fact, TCS has long-term leases. So, currently, it is more investments and more expenses,” he said, addressing a large gathering of investors following the announcement of its quarterly results.
Investors were of the belief that TCS is saving a lot of money as a large majority of its employees are currently working from home.
However, Chandrasekharan emphasized that the remote-working arrangement is not a temporary measure and that the company is determined to allow most of its employees to operate from home permanently.
Earlier in April, the company’s current CEO Rajesh Gopinath had indicated that over the next five years he would allow 75% of his staff to work from home.
“TCS can only see and gauge what the trend is going to be. So, we are seeing this as a trend and are making significant investments,” Chandrasekharan added.
Operating in more than 40 countries around the world, TCS is India’s biggest IT services firms and has nearly half a million employees.