In a surprising twist, TCS, a leading tech giant, has abandoned its 25/25 plan, which aimed to keep only 25% of its workforce in office, signaling a renewed focus on in-person work. During its second-quarter earnings address, the company emphasized the importance of bringing employees back to the office after extensive internal discussions.

Milind Lakkad, TCS’s Chief HR Officer, explained that over the past three years, a significant portion of the workforce was hired in virtual and remote modes, resulting in a disconnect between old and new employees. TCS believes that integrating both groups is vital for learning and embracing the TCS culture.

TCS has actively started encouraging employees to return to the office, with approximately 70% already making the transition. The advantages of this shift are becoming evident, with employees expressing a preference for the office environment. N Ganapathy Subramaniam, TCS’s COO, emphasized the importance of the office experience, providing mentorship and enabling collective customer interactions.

Subramaniam stressed that certain aspects of work, including learning and observation, are best done collectively in a physical workplace. When asked if this shift indicated a departure from the 25/25 plan, he left it as a subject of conjecture.

Lakkad, however, pointed out that nothing is set in stone. TCS remains open to assessing various working models to determine what best serves its employees and clients.

The company also announced that it will pay 100% of the variable pay to 70% of its employees, with the remaining portion dependent on business performance. In the second quarter, TCS reported a decline in dollar revenues for the first time in four years.

Notably, the company’s attrition rate saw a significant drop, falling to 14.9% from 17.8% in the previous quarter. The headcount also decreased to 608,985 as of September’s end, down from 615,318 at the end of June. Lakkad explained that while they continue to hire, it hasn’t been sufficient to cover attrition. TCS remains committed to hiring freshers and honoring all existing commitments, even in the event of delays.