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Business News/ Companies / News/  Amid pandemic, Infosys says it'll 'honour' the job offers extended so far
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Amid pandemic, Infosys says it'll 'honour' the job offers extended so far

'Infosys intends to not only nurture its vast pool of digital talent in a high-productivity environment, but also honour the job offers it has extended to the markets,' the company said
  • Infosys spoke at length about how it dealt with onset of Covid-19 and protected its employees
  • 93% of the Infosys global workforce is now working from home (File photo: Mint)Premium
    93% of the Infosys global workforce is now working from home (File photo: Mint)

    IT major Infosys on Monday said that considering the business uncertainty emanating from Covid-19, the company is unable to provide guidance on revenues and margins for FY21 at this stage. The company said it will provide guidance after visibility improves. However, the company said it will 'honour' the job offers that have been made so far, "in order to enhance the skill-sets it can bring to recovery-focused client environments".

    The company said in wake of the pandemic, it faces multiple short-term challenges.

    "The company anticipates a continued slowdown in the near term influenced by a broadbased global economic recession. With some impact due to project deferrals and softening of discretionary spends, there will be some margin pressure in the near term. In response to these new contours of projected demand, Infosys will work to optimize its cost structure and operational rigor, while continuing to invest in strengthening its digital capabilities. Infosys intends to not only nurture its vast pool of digital talent in a high-productivity environment, but also honour the job offers it has extended to the markets, in order to enhance the skill-sets it can bring to recovery-focused client environments," said Infosys in its stock exchange filing.

    The IT firm also spoke about how it tackled the pandemic head on.

    "The company continues to be employee-first in its approach (towards Covid-19), and has made employee well-being a clear priority, even as teams across the company work to assure business continuity for clients. With lockdowns effective, in several parts of the world, 93% of the Infosys global workforce is now working from home. Small teams of mission-critical frontline personnel continue to work out of the company’s workplaces to deliver on specific business continuity plans for clients in critical infrastructure and service industries. To minimize any risk to its employees’ health that this brings, the company has taken every reasonable precaution - from recommissioning facilities, adopting more rigorous cleaning routines, and stocking essentials such as masks and sanitizers, to implementing social distancing best practices and maintaining readiness to evacuate.

    "A few Infosys employees across the world have tested positive for COVID-19. The company is in touch with them and their families to provide active and continuous support to help them through the rest and recovery. Infosys has also undertaken contact tracing measures to identify colleagues, if any, who have interacted with them and ensuring that they are appropriately quarantined."

    Infosys also delved into how it enable remote working for its over 2 lakh employees.

    "Early on, to enable its employees to work from home, Infosys rapidly mobilized laptops and desktops, with access to secure virtual work environments wherever necessary. The company has provided high speed broadband connectivity for remote workers and expanded its own virtual private network bandwidth by 10X. This meant shipping over 35,000 assets to employee residences. Significant and rapid amplification of its technology landscape was undertaken to support robust and secure remote working at global scale. This meant driving 4X increase in backend capacity to support the increase in concurrently connected remote users.

    "With cautious optimism Infosys approaches its plans in the weeks ahead, while carefully monitoring advisories and adapting tactics to policies and injunctions in the cities, states and countries that the company operates in. Infosys has completed scenario-planning for when its employees, in incremental batches, will return to work out of its global offices, and client offices, while adhering to the social distancing prescriptions for workplaces and strictly as per local regulatory advisories. Employee safety will not be compromised even as the company relies on project requirements to drive the on-premise and remote staffing mix," the company said in its statement.

    As of 31 March, 2020, Infosys had 242,371 employees, with an annualized standalone attrition of 18.2%.

    Infosys' fourth quarter net profit declined 2.9% on a quarterly basis to 4,335 crore.

    Last week, TCS, another huge IT firm, said it will not retrench any of its nearly 4.5 lakh employees, but has decided not to give any salary hikes this year. The Tata group company said it will honour each of its commitments on new hires by taking all the 40,000 people who have been given offers on board,.

    The company reported a healthy profit jump for the March quarter, but hinted at very difficult time in the first two first two quarters of the current fiscal due to coronavirus crisis.

    Wipro too warned of "huge pressure" on margins in the fiscal first quarter to end-June and said it would have to make tradeoffs in hiring, salary increases, discretionary spending and other costs.

    However, its chief financial officer Jatin Dalal told Reuters Wipro was not contemplating any layoffs.

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    Published: 20 Apr 2020, 05:43 PM IST
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