At the end of Tech Mahindra
had a headcount of around 125,000. According to the company, around 94 per cent of them are currently working from home, owing to the lockdown
that has been imposed to contain with the spread of Covid-19 pandemic.
Bhat said that one of the reasons why the company is looking at making the proposed control and command centre an "integral" part of its workstyle in the future, is to make the quality management system online and real-time rather than depending on manuals and documents. However, Bhat agreed that, the company has to deal with data privacy issues, laws of the land and client preferences to take WFH forward on a larger scale. "That's why we are not talking about a much higher number."
During its post earnings conference call with the analysts last Thursday, Tech Mahindra
highlighted WFH as one of cost-optimisation strategies. Others measures being considered by the company include reduction in subcontracting costs, third-party costs, and savings in travel expenses which account for 2-3 per cent of total costs. The company has also announced to temporarily hold disbursal of variable pay and bonuses.
"We have always said our model will be going in for subcontracting and as we transition it to our own workforce, you will see that costs coming down. The costs have now dropped to 3 per cent of revenue from 16 per cent (in previous quarters) is reflective of that practice," Bhat said.
“Some operating leverage should manifest from the cost takeout initiatives whenever revenue growth recovers though part of it (along with currency depreciation) will go towards providing a better value proposition for stressed clients,” brokerage firm ICICI Securities had stated in a recent report on Tech Mahindra.