Even when the coronavirus threat ends, the world will never be the same again. Well that is not the opinion of a few, but millions. Coronavirus will certainly bring about a change in the way we live in… both at home and the workplace. One this for sure, the Information Technology (IT) sector will not be the same again. More and more professionals of the information technology segment will begin to operate remotely.
Major transformation to happen
One industry that is certainly going to look different is the IT sector. Since the implementation of lockdown, 90 per cent of India’s IT workforce has been working from home. That looks here to stay, at least for a substantial period of time. It has prompted information technology (IT) leaders to seek a change in India’s taxation and labour laws.
Nasscom’s role
Senior IT industry leaders had a meeting with labour department officials earlier this month. During the meeting, they suggested that laws should be amended. The government has asked them to prepare a draft regarding the legislative changes they are seeking. Industry body Nasscom is preparing a detailed report on this issue.
Once the Nasscom report is ready it will be sent to the Telecom and Labour Ministries for relevant action. Then changes may be brought in to the laws that will facilitate both the IT sector and its employees.
Contribution of IT sector to Indian economy
The IT sector employs close to 4.3 million people. It is expected that half of these people will continue to work from home even after the coronavirus threat has subsided. Sources said that India’s IT industry contributes about eight per cent to the country’s GDP. It also has a 46 per cent share in the country’s services exports. India’s software exports were USD 147 billion in the 2019-20 fiscal.
Other suggestions from IT sector
The IT sector has also put forward another request to the government. It has asked for extension of certain concessions that have been provided to the sector due to the pandemic COVID-19. One of the relaxations allowed was that back-office companies to work from home. Hence these companies were permitted to shift equipment out of special economic zones (SEZ) to facilitate remote working. Top industry leaders want this relaxation to continue as it will be of huge benefit to the sector.
WFH, the new norm
Once work from home (WFH) becomes regular, a number of issues need to be addressed. The first among these are labour laws. They need to be amended in such a manner that it will safeguard the employees’ interests. At the same time it will also provide flexibility to the employers Nasscom is currently looking into the amendments that can be implemented to the labour laws keeping in mind WFH perspective.
Since the lockdown implemented March 25, India’s IT sector is basically functioning remotely. Close to 90 per cent of the IT workforce is engaged in WFH. This transition has prompted many major players to seriously think on these lines. It will help them save expenses they accrue while running commercial establishments.
Cutting down on costs
Tata Consultancy Services (TCS) which is India’s largest IT firm is looking at 75 per cent of its workforce being employed remotely. It is not that TCS alone is thinking on these lines.
Tech Mahindra is another company that is seriously considering the abolishment of huge campuses comprising thousands of employees. “Initially may be 25 per cent of the work force may start working remotely,” CP Gunani, the CEO of the company has been quoted as saying. “Most companies will break away from large campuses to smaller centres. This will certainly bring down establishment costs,” he added.
Environmental benefits
Experts are also of the view that WFH will have environmental benefits also. Now metro cities are heavily congested with the IT workforce migrating from tier II and tier III cities. Once WFH becomes the order of the day it could mean reduced carbon footprints for metros. Hence WFH will deliver gains to the society as well as to the industry.
Another senior Nasscom official was of the view that WFH will be beneficial for IT professionals . He pointed out that many will be able to work for two-three companies. Thereby they will earn more. It is in this perspective that labour laws need to be amended, said the official.
“Current labour laws will need to be revisited to provide industry the flexibility to enable working hours and shift timings,” the official has been quoted as saying.
During the lockdown there have been huge debates about the pros and cons regarding WFH. There may be many industry sectors across India for whom WFH cannot be implemented. After all one cannot operate a blast furnace from home remotely. The coronavirus pandemic however, has brought a huge shift in the IT paradigm. Now remote working is the order of the day and it looks like staying in place permanently.
Agencies