Tech industry comfortable with hybrid work model: Nasscom-BCG report

More than two-thirds of IT and GCC companies, tech buyers, and employees are ready to accept a combination of remote and on-site work models in post-pandemic time, says a report by industry lobby NASSCOM and Boston Consulting Group (BCG).

The report, titled 'Shaping the Future of Work in India's Tech Industry’, includes a survey of the stakeholders of 75 public companies. Over 80 percent of the IT companies and GCCs are most likely to adopt a hybrid work model as compared to the rest of the industry segments, the report finds.

Given a choice, around 70 percent of employees in digital fields would prefer a combination of remote and on-site work models, while 25 percent would opt for completely remote work. Around 70 percent of Tech services buyers said they are comfortable with hybrid models.

NASSCOM said the newer working models may include a higher adoption of pay on-demand models involving gig workers and freelancers. Companies are also planning to change their geographical footprint and shift the focus to Tier-2 or Tier-3 towns. The approach aims to attract and retain highly skilled talent spread across geographies.

Indian tech companies have already started adopting new work models which vary from completely remote to a combination of remote and on-site to completely on-site. Debjani Ghosh, the president of NASSCOM, said “the pandemic has widespread ramifications on businesses across the globe, impacting the way they interact and operate. Organizations have faced some of the major shifts, with remote/hybrid being the most distinct one.”

The report outlines new challenges of IT security in light of changing workforce mix with the hybrid models and increasing digitization in business. Organisations will also need to strengthen the chain of culture by incorporating a more trust-based and embedded culture to retain and attract new talent. The organizational structure is also expected to undergo some changes.

Nitin Chandalia, Managing Director and Partner, BCG India underlined the need for innovative solutions to create a workplace of the future. “The future model of work is not binary, and many variations are possible across a continuum,” he said.