As the covid threat is reducing and everything is going back to normal slowly and steadily with increased vaccination and a very low daily count of fresh cases. Most of the companies are on their way to end work from the home policy after nearly two years of disruption due to the pandemic and strict lockdowns.
Tata Consultancy Services, India’s top IT service company, will is about to ask it’s half a million employees to return to the office by the end of 2021. According to the report in economic times.
Rajesh Gopinathan TCS CEO told the newspaper that the company is planning to call back at least 70-80% of its workforce/employees to work from the office by the end of the current calendar year, most probably from early next year. Based on how the impending third wave of the pandemic turns out.
If TCS successfully completes to return to office call and if all of that goes well as per plan it might set a new trend for all the IT industry which quickly adopts to work from home culture. In a matter of weeks as the pandemic took hold leading to localize and nationwide lockdown.
Gopinathan added that TCS has no plans to utilize its market cap of around $195 billion for acquisitions. The market capitalization of Tata Consultancy Services (TCS) went up by Rs 44,832.5 crore to Rs 14, 20,935.10 crores. As of September 5, TCS is the most-valued firm after Mukesh Ambani’s Reliance Industries.
If we speak on the acquisition plans, India’s second-largest company by market capitalization of nearly$195 billion. The company has no plan as to how to leverage the same in order to make large acquisitions as it is wary of current valuations. Instead, it plans to acquire companies that give it more, ‘capability access’, the report added. His company is cash conservative with respect to current market conditions despite the high market cap, said Gopinathan.
Asked about the outperformance of Infosys compared to TCS growth. The TCS CEO said it does not worry him, he further added, competition helps the company to keep itself agile. TCS nearly contributes 25% to the company’s$150 billion software exports and employs 10% of the country’s 4.6 million IT workers.
From owing to a rally in TCS shares prices in the current market bull run led to its market capitalization hitting the Rs 13 lakh crore mark for the first time in August 2021, It became the second listed company in India after Reliance Industries, and the first information technology (IT) company to cross the milestone.
All the key Highlights
- TCS CEO hopes to call workers back by 2021-end or early 2022 based on the impending third wave of Covid-19.
- TCS contributes nearly 15% to India’s $150-billion software export market. It employs over 500,000.
- CEO Gopinathan said TCS not looking to leverage its market cap for acquisitions.
- The IT sector accounts for 40% of India’s office leases.
- TCS will also continue physical recruitment.
- Subramaniam says that TCS will continue hiring wherever it is located and will not shift its dependence to the cloud.