CHENNAI: Tata Consultancy Services (TCS), India’s largest IT services provider, has recently drawn attention over its "bench policy"—a long-standing workforce management practice common in the IT industry. This policy has seen renewed scrutiny following the company's statements and internal measures post-Q1 FY2025 earnings, particularly around employee deployment and attrition.
Nascent Information Technology Employees Senate (NITES), a group representing India’s IT workers, has written to the Ministry of Labour and Employment, accusing Tata Consultancy Services (TCS) of using “coercive” and “punitive” measures under its revised bench policy.
What is the Bench Policy?
In the IT sector, a "bench" refers to employees who are not currently assigned to active, revenue-generating client projects but are still employed and available for deployment. These employees may be undergoing training, awaiting project allocation, or transitioning between roles. TCS, like many IT majors, maintains a sizeable bench to ensure flexibility and quick responsiveness to changing client demands.
TCS’s CEO K Krithivasan, in a recent earnings call, emphasised a focus on “employee productivity” and hinted at stricter enforcement of bench timelines. The key aspects of TCS’s bench management include:
Reallocation Focus: TCS is actively working to move benched employees into billable roles faster.
Exit Pressure: According to employee forums and insider reports, those remaining unallocated for extended periods (typically over 90 days) may face internal pressure to resign or be let go.
Training Alignment: Employees on the bench are often required to reskill or upskill in newer technologies (e.g., GenAI, cloud, cybersecurity) to improve deployability.
Attrition Link: With attrition down to 12.1%, TCS is placing more scrutiny on internal resource utilization rather than hiring aggressively.
Implications for employees
According to sources in the industry, the extended periods on the bench may lead to involuntary exits, causing anxiety among staff, especially freshers and those in redundant roles.
While, the company says a more efficient allocation could lead to higher overall engagement and productivity.
Although the employees are encouraged—or required—to learn in-demand technologies, potentially boosting their career prospects, NITES president Harpreet Singh Saluja says that; "... a closer and humane reading reveals that it institutionalises a culture of fear, pressure, and psychological burden on employees who are between projects."
For the company
Reducing the time and size of the bench can lower overhead costs, especially in a subdued demand environment. It can also boost operational agility. A more dynamic bench allows TCS to respond faster to client demands without over-hiring.
While rational, such an aggressive bench trimming could affect employer branding and employee morale if not handled transparently.
For the industry
As a bellwether firm, TCS’s tightening of bench norms may encourage other IT players to adopt similar measures amid muted global tech spending.
Companies may favor lateral hires or reskilled internal talent over campus hiring, affecting fresh graduate intake, says an industry consultant.
TCS’s evolving bench policy reflects its broader strategic pivot to optimise workforce productivity amid slower demand and digital transformation shifts. While the move enhances business efficiency, it raises concerns over employee well-being and job security. The balancing act between agility and empathy will define the policy’s long-term sustainability and impact, the consultant added.