The work-from-home for 2021 approach works well for corporate. It’s saved billions of rupees, especially for IT companies. How does one think ..? Companies arrange transportation for workers to travel from home to the office. Or give transport allowances. There also are trips made by employees and superiors for business purposes. But, after Corona entered the country in 2020, companies must implement the home-based approach. Restrictions on travel came into force.
As a result, transportation costs are significantly reduced for companies. Transportation costs to companies domestically fell by 70 % within the 2020-21 financial year. Supported the knowledge available within the ETIG database, a report has been released to the present effect with details of 180 companies. It’s learned that strict lock-downs and travel restrictions were enforced across the country from late March to May last year. Who must say that the work-from-home for 2021 approach has greatly contributed to the graceful running of the many companies within the service sector at that point?
More profit for IT companies
IT giant TCS has spent Rs 3,296 crore on transport within the 2019-20 fiscal year. However, transport costs were limited to Rs 1,081 crore in 2020-21. That leaves the corporate with a combined Rs 2,215 crore in transport. That’s 67 %savings. Transport costs for Reliance Industries also fell by 70 % within the last fiscal year. Reliance spent Rs 788 crore on transport in 2019-20, down from Rs 236 crore in 2020-21.
Bajaj Auto, especially, has saved 93 per cent on transport costs. In 2019-20, the corporate spent Rs 77 crore on transport. In 2020-21, the value was limited to Rs 6 crore. “Critical work continues in digital form. Signatures on contracts or large contracts are recorded in any digital form. Therefore the motto of ‘why travel’ changed the way group companies work. We are limited to the required trips. There’s no possibility of going back to the previous system,” said a Tata Group official.
Pharma doesn’t have that flexibility.
“Industries like pharma must start travelling. Travel is vital for businesses like ours. Checks got to be done. We’d like to satisfy audit vendors and customers,” said Biocon Chairperson Kiran Majumdarsha. She clarified that there might not be large savings in transportation and marketing costs within the coming period.