Mumbai, July 12: Tata Consultancy Services allowed its employees to work from home on certain projects until it decided to change its hybrid policy last year and introduced a new variable pay policy this year, which stated that employees working from home over 40% of the time would not be eligible for variable pay. In September 2023, TCS said it would end the hybrid work policy for its employees and even asked the employees to return to the office starting from October 1 last year.
In April 2024, TCS introduced a new variable pay policy that stated the employees would have to comply with the new rules as the tech company would start implementing the “return-to-office” policy, mandating work from the office. According to a new report by Hindustan Times, TCS linked the variable payout to the employees with their attendance in the office in April, which led to 70% of the employees coming back to the office. TCS New Variable Pay Policy Now Linked to Work From Office Factor, Employees Who Work From Home for Over 40% of Time Won’t Be Eligible.
The report mentioned that Milind Lakkad, Chief HR Officer at Tata Consultancy Services, said that the move was temporary and should be seen that way. The new TCS variable pay policy linked to the work-from-office factor stated that employees with less than 60% attendance in the office would not be awarded a quarterly bonus. Following this policy, the IT company mandated “work-from-office” for five days a week.
The employees were compelled to have minimum attendance to receive the quarterly variable bonus. As per a previous report, as per the new variable pay policy, the employees with 60-75% attendance were granted 50% variable pay, those with 75-85% were granted 75% variable pay, and those with over 85% attendance were allowed full variable pay. The policy said that the employees working from home 40% of the time would not be eligible for variable pay. The new update says employees below 60% would not be eligible. GE Appliances Layoffs: US-Based Home Appliances Manufacturer Will Lay Off Around 2,700 Employees Amid Challenges Faced by Appliance Industry.
TCS Chief HR Officer Milind Lakkad said that following this policy, 70% of the company’s employees were back in the office. He said he was not worried about those few who were not coming back to the office and were affected by the policy. He said that the numbers had been increasing every week, and everyone took the new policy positively.
(The above story first appeared on LatestLY on Jul 12, 2024 06:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
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Tata Consultancy Services stocks: Buy Tata Consultancy Services, target price Rs 4660: Motilal Oswal
Tata Consultancy Services Ltd. key Products/Revenue Segments include Consultancy Income and Sale of Equipment & Software Licences for the year ending 31-Mar-2024.
Financials
For the quarter ended 30-06-2024, the company reported a Consolidated Total Income of Rs 63575.00 Crore, up 1.89 % from last quarter Total Income of Rs 62394.00 Crore and up 4.60 % from last year same quarter Total Income of Rs 60778.00 Crore. Company reported net profit after tax of Rs 12105.00 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 71.77 per cent stake in the company as of 31-Mar-2024, while FIIs owned 12.7 per cent, DIIs 10.6 per cent.
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Mumbai, July 11: Leading IT software services exporter Tata Consultancy Services (TCS) posted a net profit of Rs 12,040 crore for the April-June quarter of the current financial year (2024-25) which represents a 9 per cent increase over the same quarter of 2022-23. The TCS board also approved an interim dividend of Rs 10 per share for the quarter.
The record date for dividend payment is July 20, 2024, and dividends will be paid out on 5 August 2024. The company won some large deals during the first quarter pushing its order book to $10.2 billion from $8.2 billion in the same quarter of the previous year. India Job Creation: 12.5 Crore Jobs Created in India From 2014 to 2023 Show 4-Fold Jump From 2.9 Crore Created During 2004 to 2014, According SBI Study.
TCS Net profit 2024, Revenue, Check Official Post:
“We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort in France, IoT (Internet of Things) lab in the US and expanding our delivery centres in Latin America, Canada and Europe,” TCS CEO K Krithivasan said in a statement. Samir Seksaria, Chief Financial Officer, said: “In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence.” India To Become World’s Third Largest Economy Soon, Banking Sector Witnessing Decade-High Performance in Financial Metrics: RBI Deputy Governor Swaminathan J.
“We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long-term value for our stakeholders,” he added. TCS added 5,452 employees in Q1 taking the total workforce to 6.07 lakh. The company’s attrition rate stood at 12.1 per cent on the last twelve-month basis.
(The above story first appeared on LatestLY on Jul 11, 2024 07:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
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Sweden’s Crunchfish has partnered with Tata Consultancy Services (TCS) to integrate its offline solution for central bank digital currency (CBDC). The listed firm previously made the finals of the G20 TechSprint for CBDC in 2022. Meanwhile, TCS has numerous high profile banking partners, including three of the top four U.S. banks and the top four UK banks. In 2022 TCS expanded its Quartz digital assets platform to launch a CBDC solution.
Offline CBDC ranked as the most popular technology feature in the latest BIS CBDC survey. More than 68% of central banks said it was a likely feature, with very similar scores amongst advanced and emerging economies. When the European Central Bank issued a call for vendors for the digital euro, the offline solution carried the highest budget of up to €662 million over four years.
Given the budget scale, Crunchfish is relatively disadvantaged because it’s a smallish company. Hence, the collaboration with TCS is a sensible strategic move. While Crunchfish is listed, its market capitalization is equivalent to $35 million. Its offline CBDC competitors include IDEMIA and Giesecke+Devrient (G+D), which have billions in revenues.
Offline CBDC patent
Crunchfish also announced it has a green light on its U.S. patent for offline digital cash. Hopefully it will only use it for defensive purposes, otherwise it could hamper other offline CBDC initiatives.
Below is the paragraph from the patent describing the key invention. It involves two smartphones or devices tapping together for the initial payment. In a later step the devices access the internet to connect to a centralized settlement service.
“A key feature of the present invention and its advantageous embodiments is the ingenious idea of splitting the digital payment process in two subsequent stages. First, there is an offline stage with local settlement between payer and payee. This involves only proximity communication between the payer communication device and the payee communication device to settle the payment transaction offline and instantly between the payer and payee at the moment of payment, with a guarantee for the payee to get paid. Then, there is a sequentially separate stage of sending locally buffered digital payment transactions, independently by one or both of the payer and payee, to the cloud for final online settlement. This inventive approach takes away any and all online issues, including connectivity problems and payment service time-outs.”
Interpublic Group (IPG) is in negotiations to sell its digital marketing agency RGA to India’s Tata Consultancy Services (TCS), according to a report by The Wall Street Journal.
This potential sale is said to be part of a broader strategy by consulting firms to strengthen their presence on Madison Avenue, the hub of the advertising industry.
Tata Consultancy Services was founded in 1968 by Tata Sons. Over the decades, TCS has established a significant presence in Asia-Pacific, becoming one of the largest IT services and consulting firms in the region. TCS provides a wide range of services including digital transformation, IT consulting, and business solutions to numerous industries across the region. The company has established a strong foothold through partnerships and solutions tailored to Asia-Pacific.
RGA, on the other hand, has made its mark in the Asia-Pacific region through its creative and digital marketing prowess. Founded in 1977 by Bob Greenberg, the agency is known for its cutting-edge campaigns and innovative use of technology. It has also worked with prominent brands in the region and worldwide, including Toyota, Google’s Android, Samsung, Diageo, Fujitsu, and Nike. RGA’s focus on blending creativity with technology has allowed it to build a robust presence, particularly in key markets like Singapore, Sydney, and Tokyo.
The agency joined IPG in 2001 through the acquisition of its parent company, True North Communications.
The potential acquisition by TCS would place RGA alongside other consulting giants like Accenture and Deloitte, which have expanded into the marketing sector by building and acquiring agencies that offer digital transformation, experiential marketing, creative services, and web/mobile development. While the exact terms of the deal are undisclosed, sources familiar with the matter suggested to The Wall Street Journal that RGA could be valued at approximately $300 million. However, final agreement on valuation has yet to be reached, and the deal may still not follow through.
In addition to the acquisition, Interpublic and TCS are reportedly discussing a broader strategic partnership, which could involve collaboration on AI and data solutions for shared clients.
Despite its past successes, RGA has faced recent challenges, including executive turnover, client losses, and a decline in ad spend, particularly from tech clients, which led to a 20% revenue drop last year to about $200 million, according to The Journal.
The proposed sale is said to be part of Interpublic’s efforts to streamline its operations and adapt to the rapidly evolving advertising landscape, increasingly influenced by artificial intelligence and digital transformation.
Campaign has reached out to IPG for comment.
“We hereby inform you that the term of office of Mr N Ganapathy Subramaniam, Chief Operating Officer and Executive Director (COO & ED) of the Company, ends on May 19, 2024. Accordingly, he ceases to be COO & ED of the Company with effect from May 20, 2024,” TCS said in an exchange filing.
The Tata Group company on April 12 announced that the Chief Operating Officer (COO) and Executive Director would retire in May. “He’s (Subramaniam) been doing many things and no single individual can replace him, our current thinking is, our leadership team, we are re-distributing the work he’s been doing and we don’t intend to appoint a new COO,” TCS CEO K Krithivasan had said in the post-earnings presser.
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Subramaniam assumed the position of COO in February 2017 and has been associated with TCS since 1982. He also served as the Additional Director and Chairman of Tata Elxsi Limited since November 2014 and the Additional Director (Non-Independent; Non-Executive) of Tata Communications Limited since December 2021.
Before taking over as the COO, he also served as the Executive Vice President, Head of TCS Financial Solutions, Products and Platform businesses, and other leadership positions across Client Delivery, Business Development, integration of businesses and Product Development.
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A Tata Consultancy Services (TCS) employee said that he had been suspended after reporting a security incident to the company. The employee took to Reddit to narrate the incident where he said that his manager had asked staffers to use their personal laptops and share login credentials.
“I reported a security incident in TCS where my manager was making employees use their personal laptops and sharing login credentials,” the staffer wrote on the platform.
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The employee said that his suspension was against the company policy, which said that no action can be taken against a whistleblower and added that he would not receive any help from either his manager or human resources as he wasn’t in good terms with them.
“According to the TCS whistleblower policy no action can be taken against whistleblower but today I received a suspension notice. Some background: my HR and managers will not help me because of poor relations,” the employee wrote.
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The post saw a lot of replies from users, who offered suggestions of the next steps that can be taken.
“Raise it on LinkedIn. Tagging higher officials of Tata group. (Not only TCS). All this act is against, Tata code of conduct. Spread this like a wild fire on x, LinkedIn and other social media platforms,” one user wrote.
“Raise this issue with TCS ethics committee. They will definitely look into this. When I was in TCS ILP I remember there was an altercation between the faculty and one of the associate from our batch. The faculty told the associate that they will fail him in the finals and they did. He reported them to ethics committee and a team came to ILP center to investigate. The associate was later passed,” another user wrote.
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Also read: TCS won’t give variable pay to employees with less than 60% attendance in office
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A Reddit user on Tuesday claimed that he was suspended from Tata Consultancy Services (TCS), India’s largest IT services company, for reporting a security incident.
The user claimed that the action was taken against him despite the company’s policy that “no action can be taken against whistleblower”.
LiveMint has reached out to the company and is awaiting a response.
In a post on a social media platform, the user said that the action was followed after he reported a security incident in TCS where his manager was making employees use their personal laptops, and sharing login credentials.
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“According the TCS whistleblower policy, no action can be taken against whistleblower but today I received a suspension notice,” said the user.
The user asked for the advice as to what should be done in this situation, adding, “My HR and managers will not help me, because of poor relations.”
At least 293 users have commented on the post, with some asking him to post about the incident on LinkedIn and bring it to the notice of higher authorities.
“Collect your experience letter, join a new organisation,” said one user.
Also Read: Poor office attendance? Forget performance bonus, TCS tells employees
Another user said that the company will say that they didn’t take any action against you as a whistle-blower but as an employee who didn’t follow XYZ policies.
One user asked the ‘suspended’ employee to post the matter on LinkedIn, and tag higher officials of Tata group, as the act was against the code of conduct.
One of the users also urged him to raise this issue with TCS ethics committee as they will “definitely” look into the matter.
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Reacting to comments in response to his post, the Reddit user said that he has sent a mail to higher officials. “They are blaming me for everything. I reported for example, sharing client credentials, using personal laptop for work and communicating on WhatsApp.”
In 2023, Tata Consultancy Services (TCS) had sacked six employees after finding them guilty of accepting favours from certain staffing firms in the appointment of contractual workers.
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