Atlassian's Explosive Growth In India: A 'Work From Anywhere' Success Story

In a transformative journey that underscores India's pivotal role, Atlassian, the Nasdaq-listed software titan, has elevated the country to the forefront of its global operations. Speaking with BW Businessworld, Co-founder and Co-CEO Scott Farquhar lauded India's ascent as an indispensable market, driven by the company’s innovative 'work from anywhere' policy. Farquhar said, “India's vibrant tech ecosystem and our 'Team Anywhere' model have combined synergistically to unlock unprecedented growth avenues.”

“In the last four years, we have grown our staff in India nine-fold. Majority of this staff are in research and development (R&D) jobs and we continue to hire aggressively in India because the talent market is really deep. Besides, India is the fastest growing region for Atlassian and it will continue to be so,” he added.

Atlassian shares have experienced a surge of over 10 per cent since the collaboration software company announced its fourth-quarter results last week, along with guidance that garnered positive recognition from Wall Street.

The Sydney, Australia-headquartered company has built tools like Jira, Confluence, Bitbucket and Trello, which are widely used across the globe.

‘Team Anywhere’

Atlassian's Indian odyssey began in 2018, with a team of 60 stationed in Bengaluru, Karnataka. A mere five years later, the company has orchestrated an astounding expansion, amassing a workforce of around 1700. For Farquhar, this trajectory speaks volumes about India's tech prowess and the groundbreaking potential of the 'work from anywhere' ethos, which he proclaims to be “a cornerstone of Atlassian's global strategy.”

“Our attrition rate stands notably lower, with a mere 11 per cent in India as opposed to comparable peer companies which face an attrition rate of approximately 20 per cent. This divergence signifies a conscious choice by our employees to remain with us,” said Farquhar.

“In fact, during a conversation with some of our local leaders here, they highlighted the prevailing sentiment that working at Atlassian is so rewarding that individuals often resist the idea of seeking opportunities elsewhere,” said he added.

The inception of the 'work from anywhere' policy, ignited by the COVID-19 outbreak in March 2020, has been a game-changer. Farquhar noted, “Our policy isn't just about remote work; it's about creating a culture where employees thrive, irrespective of their location. This shift has enabled us to tap into India's colossal talent pool, estimated at a staggering 4 million software developers.”

Meanwhile, post the release of Q1 FY24 results, it is evident that prominent Indian IT service firms such as TCS, Wipro, and HCLTech are actively encouraging their employees to resume working from the office.

In fact, Milind Lakkad, Chief Human Resources Officer at Tata Consultancy Services (TCS), revealed post Q1 results that TCS is actively concentrating on reinstating office presence, with more than 50 per cent of the workforce already spending over three days weekly in the office. The initiative aims to enhance productivity, culture and talent retention. HCLTech and Wipro have echoed this trend, as HCLTech's CEO, C Vijaykumar, in an interview, emphasised on 70-75 per cent office reintegration by year-end. 

Rishad Premji, Wipro's Chairman, has also publicly emphasised the irreplaceable value of in-person collaboration. Infosys similarly curtailed work-from-home for US and Canada employees, stressing on office work unless specially permitted. Similar trends have emerged amongst world’s largest companies such as Meta, Twitter (or X) and Apple as well.

In such a situation, a remarkable testament to Atlassian's devotion to the work from anywhere (or ‘Team Anywhere’) philosophy is its expenditure of approximately USD 16 million to exit the Special Economic Zone (SEZ) in Bengaluru, a decision emblematic of the company's commitment to fostering a flexible work environment. Farquhar said, “The SEZ exit was a significant move, allowing our 'Team Anywhere' approach to truly flourish. This investment was pivotal in empowering our employees to contribute from wherever they are most productive,” said Farquhar.

He said that the policy's impact has transcended geographical boundaries, with more than just Bengaluru contributing to Atlassian's growth. In places like Delhi-NCR, Pune, and Hyderabad, burgeoning clusters have formed, expanding the company's reach across India. Farquhar emphasised, “Our 'Team Anywhere' concept isn't limited by geography. In fact, 86 per cent of our Bengaluru-based Atlassians still frequent the office each month, fostering a balance between remote work and in-person collaboration.”

Atlassian has a number of growing hubs or clusters in India outside of Bangalore, such as Delhi-NCR (11 per cent), Pune (3.8 per cent) and Hyderabad (3.2 per cent).

Beyond organisational growth, Atlassian's 'work from anywhere' strategy has engendered positive social transformations. The company has witnessed a notable increase in its female workforce, with women now comprising 27 per cent of the employees in India. Farquhar elucidated, “Flexibility isn't just about work; it's about creating an environment where individuals can thrive personally and professionally. This inclusive approach has catalysed the empowerment of women within our workforce.

Meeting With PM Modi

Scott Farquhar, also serves as a Board Director of the Tech Council of Australia. In response to BW Businessworld’s question on the nature of technological collaboration between India and Australia, he mentioned a recent meeting with the Prime Minister Modi during his visit to Sydney. Their discussion highlighted that while trade often focuses on tangible resources like raw materials such as iron and coal, a more substantial form of trade between India and the world is the exchange of intellectual property (IP) and the movement of people, including migration.

During the meeting with PM Modi, Farquhar also highlighted how specific geographic economic incentives in India can be limiting for businesses, leading to challenges and costs when exiting such programmes.

Farquhar told BW Businessworld that he proposed the concept of a "Team Anywhere" policy, advocating for remote work flexibility that transcends geographical restrictions. He emphasised that this approach could lead to increased workforce participation for women, poverty reduction, economic growth in rural areas and the expansion of the middle class. He suggested that some existing incentives might hinder the promotion of this inclusive and remote work-friendly policy.

Emphasis On Remote And Hybrid Work

Reflecting on Atlassian’s research commissioned among Indian knowledge workers, Farquhar highlighted the monumental shift in attitudes towards remote work. “Our research underscores the evolving dynamics of work. The willingness of 82 per cent to trade a portion of their salary for flexibility underscores the newfound appreciation for work-life balance.”

But the journey hasn't been devoid of challenges. The research also revealed that a substantial 34 per cent of respondents feel compelled to be physically present at the office, hinting at the lingering influence of traditional work paradigms. However, Farquhar noted with optimism, "Change takes time, but the paradigm shift is tangible. Over half, 53 per cent, recognise their enhanced productivity while working remotely. It's a transformative realisation."

Atlassian's pioneering stance on corporate responsibility aligns with the changing landscape of employee expectation and Farquhar concurs. He said, “Today's employees want more than just a job; they seek alignment with their values. Our engagement with social issues and commitment to meaningful action underscores our dedication to fostering positive change.”