TCS new benching policy: Employees face uncertainty, fear layoffs - here's what's happening

Time of India

21-07-2025

The exact impact of the benching policy on the TCS workforce remains uncertain.
Tata Consultancy Services (TCS) employees are worried about layoffs as the first round of the new benching policy at India's largest IT services giant ends. Several TCS employees appear to be taking to social media platforms like Reddit to express their concerns about their role and future in TCS.
The newly implemented benching guidelines effective from June 12 restrict the non-billable period to 35 days annually, beyond which employees could face professional setbacks or possible job loss.
According to an ET report, employees have reported various challenges, including urgent project searches, assignments in mismatched skill areas, unsuccessful client interviews, and difficulties securing projects in preferred locations.
A concerned Reddit participant was quoted as saying, "This is the first step towards employment rationalisation based on utilisation. Brace for layoffs."
A new recruit shared, "I have recently joined TCS and training was conducted in Java. Now, it's not even a month on bench and RMG is pressuring me to join a *** support project, far from Java and Python."
However, the financial daily could not verify the veracity of the posts on Redditt.
What is the
TCS Benching Policy
?
Explaining the revised bench policy, TCS chief executive and managing director K Krithivasan told Times of India: "It's always been expected that associates take responsibility for their careers. While HR supports project placement, we also expect associates to proactively seek new assignments after completing existing ones. What you're seeing now is simply a more structured version of what's long been in practice.
We aim to minimise bench time."
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The company prioritises substantial investment in employee development. "Once we've made that investment, we work to ensure associates are deployed," he said. "While preferences are considered, projects are driven by client needs, not personal choice. We deploy based on training, demand, and skill alignment. If gaps exist, we work to close them before deployment."
When questioned about TCS withholding salaries for staff on extended bench periods, Krithivasan offered no direct response.
TCS Benching Policy Impact
The exact impact on the TCS workforce remains uncertain. Based on industry data, approximately 15-18% of employees at major Indian IT companies typically remain on bench. TCS, which leads India's IT sector, currently employs around 613,000 individuals.
Last week a workers' rights organisation approached Union labour minister Mansukh Mandaviya, requesting immediate intervention regarding TCS's bench policy, which they described as "inhumane," "exploitative" and mentally taxing for technology professionals.
Nascent Information Technology Employees Senate (NITES) submitted a formal complaint to the minister, claiming that TCS is pressuring benched employees through termination threats and withholding experience certificates if they cannot secure project assignments within specified timeframes.
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"These are not non-performing employees, but skilled professionals who find themselves temporarily without allocation… Instead of support, they are met with suspicion, coercion, and threats," NITES president Harpreet Singh Saluja said in the letter.
Some staff members are however backing TCS' decision, noting that numerous employees have stayed unassigned for extended periods, turning down offered projects. These individuals have used their unallocated time for pursuing additional qualifications whilst not contributing to the organisation's productivity.
"This may help TCS trimming some seriously underperforming resources, those stuck on TCS like a leech," a Reddit user posted.
TCS Benching Policy: Industry Impact
The IT sector anticipates significant changes as artificial intelligence (AI) begins to automate routine operations.
"We expect IT companies to become stricter with their bench policies due to the soft business environment and AI-led demand for advanced skill sets," Pareekh Jain, founder and CEO of EIIRTrend told ET. He observed that staff expenses are notably affecting company profit margins.
The stringent bench policy implemented by TCS might influence other IT firms, as managing bench strength becomes increasingly challenging due to AI-driven productivity improvements making it harder to reassign entry-level engineers, according to industry specialists.
"Tech companies must continuously align their employees' skill sets with evolving client needs. By revisiting their bench policies, organisations are encouraging employees to reskill and stay relevant in high-demand areas such as AI, cybersecurity, and digital engineering," said Nitin Bhatt, technology sector leader at EY India according to the financial daily's report.
"Going forward, tenure and grade-based promotions and merit increases will likely be replaced by assessments of skills proficiency and competencies required to take on new roles," he added.
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