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PAGE 1 WORK FROM HOME SURVEY WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

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Page 1: HYSEA – Hyderabad Software Enterprises Association

PAGE 1

WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

Page 2: HYSEA – Hyderabad Software Enterprises Association

PAGE 2

WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

TABLE OF CONTENTS

EXECUTIVE SUMMARY...............................................................................................03

SECTION I

• COMPANY SIZE ANALYSIS.............................................................................04

SECTION II

• NATURE OF BUSINESS.....................................................................................04

SECTION III

• CURRENT WORK FROM HOME ANALYSIS..................................................05

SECTION IV

• PROJECTED WFH PERCENTAGE AFTER 90 DAYS......................................07

SECTION V

• TRENDS ANALYSIS OF WFH...........................................................................09

SECTION VI

• PRODUCTIVITY ANALYSIS..............................................................................10

SECTION VII

• ISSUES BEING FACED, WITH CURRENT WFH OPERATIONS....................12

SECTION VIII

• REASONS FOR GOING SLOW ON RETURN TO OFFICE (WFO)..................14

CONCLUSION & DISCLAIMER ....................................................................................16

Page 3: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

EXECUTIVE SUMMARY

The COVID-19 pandemic has forced the IT/ITES industry to work from home since March

2020.

As the premier industry association in Hyderabad, HYSEA wanted to estimate, with reasonable

accuracy and with member inputs, the (Work from Home)WFH and WFO(Work from Office)

percentages and how the future is going to look like. When representing the industry in

different forums, an accurate estimate is very important. This data will be only used at an

aggregate level and individual responses will remain confidential.

The survey has received an overwhelming response with 195 IT/ITES companies responding.

These companies belong to IT services, IT Products and IT enabled Services. The size of the

companies ranges from Micro(0-100 employees), Small(100-500 employees), Medium(500-

1000) and Large(>1000 employees).

This survey analysis the data based on two key factors:

• Nature of company’s business &

• Size of the company.

Summary of Survey Findings

Across all sizes and nature of businesses, nearly 80% of companies in Hyderabad have said,

90% or more of their employees are working from home at this point in time. IT services

companies took the lead with 85% of them managing >=90% WFH while only 68% products

and ITeS companies managed this WFH percentage.

Nearly 76% of large companies, across nature of business, have more than 90% of employees

working from home. For MSMEs, nearly 80% of companies managed similar WFH%. Smaller

companies had lesser dependencies and challenges in moving work to home.

After 90 days, across the industry, the WFH% is projected to fall from current levels to about

60%. This means the business leaders are hoping to see approximately 40% of work force

returning to office, subject to conducive conditions.

Majority of the companies polled across sizes and nature of business have reported productivity

levels higher than 90%. This should make Hyderabad IT industry proud of its workforce and

leadership.

The three biggest issues being faced by the IT/ITES companies, in terms of WFH, are related

to Broadband, Power cuts and Cyber Security.

Risk perception by companies and employee reluctance are the major reasons for Companies

across the board going slow on WFO, followed closely by Transport readiness.

HYSEA, as a responsible industry body, will work closely with the Govt of Telangana and

bring to their attention the issues that are impacting WFH and Return to office and try to seek

solutions.

SECTION I

Page 4: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

COMPANY SIZE ANALYSIS:

The distribution of the employee headcount of the participating companies is defined Micro(0-

100 employees), Small(101-500 employees), Medium (501-1000 employees), and Large as

employees greater than 1000:

SECTION II:

NATURE OF BUSINESS

The participating companies are primarily form three groups based on the nature of the

business: IT Services companies, IT Product companies and IT enabled Services.

0-10030%

101 - 50044%

501-10007%

>100019%

TOTAL NUMBER OF EMPLOYEES

0-100 101 - 500 501-1000 >1000

IT Products24%

IT Services60%

ITeS16%

NATURE OF BUSINESS

IT Products IT Services ITeS

Employee Count No. of

Companies

0-100 (MICRO) 30%

101 – 500 (SMALL) 44%

501-1000 (MEDIUM) 7%

>1000 (LARGE) 19%

Nature of Business % of

Companies

IT Products 24%

IT Services 60%

ITeS 16%

Page 5: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

SECTION III. CURRENT WORK FROM HOME(WFH) ANALYSIS:

Across the Industry, nearly 80% of companies are saying that 90% or more of their workforce

is working productively from home. The respondents include all sectors of the IT Industry,

including IT Services, IT Products and IT enabled Services.

Analysis of WFH% across types of companies: 85% of IT Services companies saw more

than 90% workforce operate from home. Only 69% of ITeS companies and 68% of IT Product

companies achieved 90% WFH.

0-8019%

81-892%

90-9521%

96-10058%

CURRENT INDUSTRY WIDE WFH%

0-80 81-89 90-95 96-100

12%

3%

22%

63%

30%

2%

13%

55%

31%

0%

28%

41%

0%

10%

20%

30%

40%

50%

60%

70%

0-80 81-89 90-95 96-100

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

WFH% RANGES

Comparison of Different Types of Companies Across WFH% Ranges

IT SERVICES IT PRODUCTS ITeS

Industry Wide - Current

WFH% as on the date of this

survey

WFH% % of

Companies

0-80 19%

81-89% 2%

90-95% 21%

95-100% 58%

Page 6: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

Analysis of WFH% across different sizes of companies: Regardless of size, three quarters

of all micro, small, mid-sized and large companies saw a consistent 90% and above WFH

numbers.

WFH% MICRO (0-100) SMALL(100-

500)

MID-SIZED(500-

1000)

LARGE(>1000)

0-80 22% 16% 22% 22%

81-89 0% 3% 0% 2%

90-95 25% 13% 39% 27%

96-100 53% 68% 39% 49%

22%

0%

25%

53%

16%

3%

13%

68%

22%

0%

39% 39%

22%

2%

27%

49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0-80 81-89 90-95 96-100

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

WFH% RANGES

Comparison of Different Sizes of Companies Across WFH% Ranges

MICRO (0-100) SMALL(100-500) MID-SIZED(500-1000) LARGE(>1000)

Page 7: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

SECTION IV

PROJECTED WFH PERCENTAGE AFTER 90 DAYS: Only about 19% of IT/ITES

companies will continue to WFH with 80% workforce. Rest of the companies are intending

to increase the WFO count by 48% from the current numbers.

NATURE OF BUSINESS-WISE WFH% AFTER 90 DAYS: A quarter of IT Product

companies project 80% return to Work from Office in 90 days’ time. While 40% IT Services

companies and 30% ITeS companies plan to operate 80% from office in the same time

period.

WFH% IT

SERVICES

IT

PRODUCTS

ITeS

0-20 13% 23% 7%

21-40 23% 17% 23%

41-60 28% 26% 17%

61-80 18% 17% 30%

81-90 2% 4% 7%

91-100 17% 13% 17%

0-2015%

21-4021%

41-6025%

61-8020%

81-903%

91-10016%

INDUSTRY WIDE WFH% AFTER 90 DAYS

0-20 21-40 41-60

61-80 81-90 91-100

13%

23%28%

18%

2%

17%

23%

17%

26%

17%

4%13%

7%

23%

17%

30%

7%

17%

0%

10%

20%

30%

40%

0-20 21-40 41-60 61-80 81-90 91-100

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

WFH% RANGES

Comparison of different typess of companies across WFH% Ranges projected after 90 days

IT SERVICES IT PRODUCTS ITeS

INDUSTRY WIDE WFH% AFTER

90 DAYS

WFH% %COMPANIES

0-20 15%

21-40 22%

41-60 25%

61-80 20%

81-90 3%

91-100 16%

Page 8: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

COMPANY SIZE-WISE WFH% AFTER 90 DAYS:

Micro, Small and Medium sized companies project a greater percentage of WFO than Large

companies.

WFH% MICRO (0-100

EMP)

SMALL(100-

500 EMP)

MID-SIZE(500-

1000 EMP)

LARGE(>1000

EMP)

0-20 19% 17% 0% 6%

21-40 19% 28% 27% 9%

41-60 21% 29% 27% 23%

61-80 19% 10% 27% 43%

81-90 2% 4% 9% 3%

91-100 19% 13% 9% 17%

19% 19%21%

19%

2%

19%17%

28%29%

10%

4%

13%

0%

27% 27% 27%

9% 9%

6%

9%

23%

43%

3%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0-20 21-40 41-60 61-80 81-90 91-100

PE

RC

EN

TA

GE

OF

CM

PA

NIE

S

WFH% RANGES

Comparison of different sizes of companies across WFH% Ranges projected after 90 days

MICRO (0-100 EMP) SMALL(100-500EMP) MID-SIZE(500-1000EMP) LARGE(>1000)

Page 9: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

SECTION V: TRENDS ANALYSIS OF WFH PERCENTAGES (Using weighted

average across sizes): Industry wide trends indicate an aspiration to steadily increase WFO,

subject to conducive conditions as outlined in Section X. Across the industry the average

WFH percentages decrease from the current 88% to 60% in the next 90 days, projecting a

40% WFO percentage. Baseline current date is taken as 18th June 2020.

NATURE OF BUSINESS - TRENDS ANALYSIS: Across all types of companies, a steady

decrease in work from home % is anticipated. After 90 days, businesses intend to return to

office, leaving only 55%~65% of workforce operating from home.

88%

72%66%

60%

0%

20%

40%

60%

80%

100%

Cur r ent % Ater 30 Days A ter 60 Days Ater 90 DaysWO

RK

FR

OM

HO

ME

PER

CEN

TAG

E

INDUSTRY WIDE WFH% TREND IN THE NEXT 90 DAYS

87%

74%

66%

60%

90%

70%

58%56%

88%

70% 70%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Current WFH% After 30 Days After 60 days After 90 daysPE

RC

EN

TA

GE

S O

F C

OM

PA

NIE

S

BUSINES-WISE WFH% FOR NEXT 90 DAYS

IT Services IT Products ITeS

WFH% →

CURRENT

(18-06-20)

AFTER

30

DAYS

AFTER

60

DAYS

AFTER

90

DAYS

IT SERVICES 87% 74% 66% 60%

IT PRODUCTS 90% 71% 58% 56%

ITeS 88% 70% 70% 65%

Page 10: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

SECTION VI

PRODUCTIVITY ANALYSIS: IT/ITES Companies have seen high productivity levels even

while operating from home. Majority of companies, across categories, have reported

productivity levels of higher than 90%. Only a miniscule 4% companies have reported

productivity drop below 60%.

BUSINESS-WISE PRODUCTIVITY IMPACT: In IT services, 84% of companies saw

productivity levels of 76% or more. An average of 8% of IT Services, IT Product and ITeS

companies registered greater than 100% productivity levels.

PRODUCTIVITY% IT SERVICES IT PRODUCTS ITeS

<60% 4% 6% 0%

61-75% 11% 15% 25%

76-90% 28% 21% 25%

91-100% 47% 51% 41%

>100% 9% 6% 9%

4%

14%

26%47%

9%

ESTIMATED OVERALL PRODUCTIVITY % WITH THE CURRENT WFH%

<60% 61-75% 76-90% 91-100% >100%

4% 11%

28%

47%

9%6%

15%

21%

51%

6%0%

25% 25%

41%

9%

0%

10%

20%

30%

40%

50%

60%

<60% 61-75% 76-90% 91-100% >100%

Comparison of different types of companies across productivity % ranges with current WFH% (18-06-20)

IT SERVICES IT PRODUCTS ITeS

INDUSTRY WIDE

PRODUCTIVITY WITH

CURRENT WFH%

Productivity% %COMPANIES

<60% 4%

61-75% 14%

76-90% 26%

91-100% 47%

>100% 9%

Page 11: HYSEA – Hyderabad Software Enterprises Association

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WORK FROM HOME SURVEY

WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

COMPANY SIZE-WISE PRODUCTIVITY PERCENTAGE WITH WFH%:

• Majority of companies have achieved > 90% of productivity regardless of their size

• All companies have minimally achieved 75% or above productivity

• Interestingly some companies have also reported > 100% productivity due to WFH

10%

23%

28% 28%

10%

1%

12%

27%

54%

6%

0%

8%

23%

62%

8%

3%

8%

19%

57%

14%

0%

10%

20%

30%

40%

50%

60%

70%

<60% 61-75% 76-90% 91-100% >100%

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

PRODUCTIVITY % RANGES

Comparison of different sizes of companies across productivity % ranges with current WFH% (18-6-2020)

MICRO (0-100 EMP) SMALL(100-500EMP) MID-SIZE(500-1000EMP) LARGE(>1000)

Page 12: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

SECTION VII

ISSUES BEING FACED, WITH CURRENT WFH OPERATIONS: The three biggest

issues being faced by the IT/ITES companies are related to Broadband, Power cuts and Cyber

Security.

BUSINESS WISE ISSUES FOR WFH: While cyber security and employee morale are

significant issues facing the Industry, the key concerns are around Broadband availability and

Power cut issues. ITeS Industry as per the survey is most impacted by the Broadband and

Power cut issues.

73%

28% 19% 18%

67%

14%0%

10%20%30%40%50%60%70%80%

PER

CEN

TAG

E O

F C

OM

PA

NIE

S

ISSUES

INDUSTRY WIDE ISSUES WITH WFH

72%

28%

22%

15%

62%

15%

64%

28%

19%

13%

62%

17%

91%

25%

9%

34%

91%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Broadband Cyber Security Employee morale Low Productivity Power cuts None

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

ISSUES

NATURE OF BUSINESS-WISE ISSUES WITH WFH

IT SERVICES IT PRODUCTS ITeS

INDUSTRY WIDE ISSUES

WITH WFH

ISSUES

% OF

COMPANIES

Broadband 73%

Cyber Security 28%

Employee

morale 19%

Low

Productivity 18%

Power cuts 67%

None 14%

Page 13: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

COMPANY SIZE-WISE ISSUES WITH WFH: Power cuts and Broadband issues

challenge the companies of all sizes. Cyber security issues pose a greater challenge to larger

companies. Low productivity is a key concern of micro sized companies.

78%

30%

25%27%

58%

8%

67%

21%

13%12%

64%

20%

69%

23%

15% 15%

77%

15%

78%

41%

27%

14%

84%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Broadband Cyber Security Employeemorale

LowProductivity

Power cuts None

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

ISSUES

COMPANY SIZE-WISE ISSUES FOR WFH

MICRO (0-100 EMP) SMALL(100-500EMP) MID-SIZE(500-1000EMP) LARGE(>1000)

Page 14: HYSEA – Hyderabad Software Enterprises Association

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SECTION VIII

REASONS THAT CAN INHIBIT RETURN TO OFFICE (WFO): Risk perception and

employee reluctance are the major reasons for Companies across the board going slow on

WFO. Transport readiness is the biggest challenge on the logistics front influencing the

decision on WFO.

COMPANY SIZE-WISE REASONS FOR GOING SLOW ON WFO: Micro, Small,

Medium and Large companies have all reported Risk Perception, Employee Reluctance and

Transport readiness as key inhibitors in getting back to office.

8%

45%

78%

7%

38%

11%8%

11%

55%

81%

2%

51%

19%

9%3%

63%

94%

13%

56%

13%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FacilityReadiness

EmployeeReluctance

RiskPerception

Support Staffavailability

TransportReadiness

Others None

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

ISSUES

Comparison of Different Types of Companies on Reasons that can inhibit return to work (WFO)

IT SERVICES IT PRODUCTS ITeS

Page 15: HYSEA – Hyderabad Software Enterprises Association

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WWW.HYSEA.IN HYDERABAD SOFTWARE ENTERPRISES ASSOCIATION

17%

38%

82%

7%

45%

10%5%3%

51%

80%

5%

49%

12%

7%0%

77%

92%

8%

69%

15%

8%8%

59%

78%

11%

24%22%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FacilityReadiness

EmployeeReluctance

RiskPerception

Support Staffavailability

TransportReadiness

Others None

PE

RC

EN

TA

GE

OF

CO

MP

AN

IES

ISSUES

Comparison of Different Sizes of Companies on Reasons that can inhibit return to work (WFO)

MICRO SMALL MID LARGE

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Conclusion:

The IT/ITES Industry in Hyderabad shifted to WFH in a very short time, overcoming many

obstacles. The operations were stabilized quickly despite challenges such as lack of proper

broadband / internet connectivity and power cuts. Industry then went on to achieve more than

80% productivity overcoming several constraints. The Industry rose to the challenge posed by

COVID-19 situation and created a viable infrastructure for the 5 Lakh+ associates to Work

from Home and remained operational, serving global clients. The fact that more than 90%

employees are working from home shows the resilience of the industry.

Productivity remained high (>90%) for majority of companies across all sizes and nature of

business.

Measures to improve broadband availability, stable power and cyber security, jointly by the

government and the Industry will go a long way in improving productivity, considering

substantial WFH percentages will remain for the foreseeable future

For the industry to return to office, the main challenges are the spike in cases, increasing risk

perception and the consequential employee reluctance to come to office. Lack of public

transport is also posing a hurdle. Joint efforts by the Industry and the government are needed

to create risk free atmosphere mainly in terms of Medical facilities, making testing and

treatment easier, better quarantine facilities and safer PG accommodations.

Disclaimer

This survey is confidential and solely intended for CEOs/Center heads of HYSEA member

companies and is not meant for further distribution. This survey provides a general

understanding of the current situation the IT/ITES Industry is facing in Hyderabad, and should

not be used for making business, legal or any other decision. The percentages and ranges shown

in the survey are subject to standard statistical sample errors.

Hyderabad Software Enterprises Association 1st Floor, TSIIC IALA Building, Beside Madhapur Fire Station, Phase 2, HITEC City,

Hyderabad, Telangana 500081 Phone: +91 9030032711 Mobile: +91 92465 00952

Email: [email protected] ; https://www.hysea.in