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United News of India
2 hours ago
- Business
- United News of India
TCS in dock over delay in onboarding 600 professionals
Bengaluru, July 22 (UNI) The Nascent Information Technology Employees Senate (NITES) has filed a formal complaint with the Ministry of Labour and Employment against Tata Consultancy Services (TCS), alleging unethical treatment of over 600 lateral hires whose onboarding has been indefinitely delayed without explanation. These experienced professionals, drawn from cities such as Bengaluru, Hyderabad, Pune, Kolkata, Mumbai, and Delhi, had received confirmed offer letters and joining dates from TCS earlier this year. Many of them resigned from secure jobs, relocated across the country, declined other offers, and made significant financial and personal commitments in anticipation of joining one of India's most reputed IT firms. However, on the scheduled day of joining, they were informed that their onboarding had been postponed indefinitely. According to NITES, there has been no formal communication from the company since, nor any revised timeline or update on their employment status. This sudden and prolonged silence has left hundreds of professionals in a precarious situation, jobless, financially burdened, and emotionally distressed. Harpreet Singh Saluja, President of NITES, said the situation has turned into a humanitarian crisis. "These professionals acted in good faith, trusting the word of a company that is seen as a leader in the Indian IT industry. Now they are struggling to pay rent, EMIs, school fees, and household expenses, with no income and no clarity from TCS. This is not just unfair, it is unethical.' In its submission to the Ministry, NITES has requested urgent intervention to ensure accountability from TCS. The organisation has urged the government to press the company to provide a time-bound onboarding plan, offer compensation for the period of delay, extend mental health support through its Employee Assistance Program, and explore alternative roles within the company for the affected individuals. Calling the conduct of TCS a violation of fair employment practices, NITES warned that such trends could set a dangerous precedent in the Indian IT sector. "We will continue to support these employees and ensure their voices are heard," Saluja added. TCS has not yet responded to the allegations, and the Ministry of Labour and Employment is yet to issue a formal statement. UNI BDN BM
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Business Standard
2 hours ago
- Business
- Business Standard
TCS delays onboarding of over 600 experienced people, says NITES
The Nascent Information Technology Employees Senate (NITES) has sent a letter to the Ministry of Labour and Employment, claiming that Tata Consultancy Services (TCS) has delayed the onboarding of more than 600 experienced professionals, despite the company having made commitments through offer letters and formal communication. NITES has requested the ministry to intervene and ensure that TCS provides an official, time-bound commitment regarding the onboarding of the affected lateral hires. The organization has also sought compensation for the duration during which onboarding has been delayed and asked TCS to explore alternate suitable positions for these professionals within the company. Furthermore, NITES demanded that TCS provide the affected individuals with access to its Employee Assistance Program (EAP) to support their mental health. "A timely and firm action from the Ministry of Labour and Employment will not only bring much-needed relief to hundreds of families but also reaffirm the government's commitment to protecting employees' rights and promoting ethical employment practices," NITES president Harpreet Singh Saluja wrote in the letter. TCS, which had a workforce of about 613,000 people as of June 30, has responded by saying, "We can confirm that, as always, TCS is committed to honouring all offers we have made, whether they are to freshers or experienced professionals. Everyone who has received an offer from TCS will be onboarded. The joining dates are decided as per business demand, and in some cases, they do get adjusted to meet our business needs. We remain in continuous touch with all candidates in these cases and look forward to them joining our company soon." The letter noted that many of these professionals, with experience ranging from two to 18 years, have relocated or made substantial personal and financial arrangements in anticipation of joining TCS. "Unfortunately, upon reporting to the company on their designated joining dates, they were informed of an indefinite delay in onboarding. No official communication, revised schedule, or assurance has been provided since," the letter stated.
New Indian Express
5 days ago
- Business
- New Indian Express
TCS's bench policy: Why it's raising concerns among IT workforce
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.
Time of India
6 days ago
- Business
- Time of India
TCS employees on the edge as co's new benching policy completes first cycle
Academy Empower your mind, elevate your skills As the first 35-day cycle under Tata Consultancy Services ' ( TCS ) new bench policy ends on Thursday, thousands of benched employees are staring at uncertainty, with many taking to social platforms to voice their policy, implemented on June 12, caps the maximum bench period — that is, time without any project allocation — at just 35 days a year, after which they risk career degrowth or even forums like Reddit are flooded with posts from TCS employees expressing their several employees have been scrambling for projects, others allege that they are being forced into projects that don't suit their skill sets. Some are getting rejected in client interviews while others are unable to find projects in their home locations, going by various posts on Reddit.'This is the first step towards employment rationalisation based on utilisation. Brace for layoffs,' one anxious Reddit user fresher claimed, '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.'ET could not independently verify the veracity of any of these number of people likely to be impacted is also unclear. According to industry estimates, on an average, 15-18% employees in leading Indian information technology (IT) firms are usually on the bench. TCS, India's largest IT company, has a workforce of about 613,000 an employee welfare body on Wednesday urged Union labour minister Mansukh Mandaviya to take urgent action against TCS for the enforced bench policy that it called 'inhumane,' 'exploitative' and psychologically distressing for IT a letter to the minister, Nascent Information Technology Employees Senate ( NITES ) alleged that the IT giant is coercing employees on the bench with repeated threats of termination and denial of experience letters if they fail to meet unrealistic deployment timelines.'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 some employees are supporting TCS' move, saying that several employees have remained on the bench for years, rejecting projects offered to them with some of them utilising the time to go for higher studies and generally not perform at the company.'This may help TCS trimming some seriously underperforming resources, those stuck on TCS like a leech,' a Reddit user did not respond to ET's requests for comment until the time of publishing this the new 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.'He noted that the company invests heavily in upskilling. '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.'Krithivasan did not directly respond to a question on whether TCS has started withholding salaries for employees benched for extended like other IT companies, has been reeling under the impact of macroeconomic uncertainty and reported a third consecutive quarter of degrowth last IT industry is also bracing for the impact of artificial intelligence (AI) automating most of its repetitive tasks.'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 IT consulting firm EIIRTrend, said. Employee costs are significantly impacting companies' margins, he decision to make its bench policy strict could have downstream impact among other industry peers with bench strength increasingly becoming a problem for IT companies as AI-led productivity gains have made entry-level engineers difficult to redeploy, experts said.'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.'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 contraction in IT services had impacted TCS' employee utilisation, which took a hit last quarter and also affected the company's margins, its CFO Samir Seksaria had said last company's employee cost reached an all-time high of Rs 37,715 crore in the first quarter ended June. It now constitutes 59.45% of its revenue, even as attrition remains high at 13.8%, data country's third-largest IT player HCL Technologies, too, took an unexpected hit on its margins because its employee utilisation went down during the June dropped 'due to a delay in ramp up for a specific program, (while) we encountered ramp downs in specific areas, which resulted in a larger bench due to also productivity benefits that we brought about, and it was also due to demand supply mismatch between skills and locations,' HCL Technologies MD and CEO C Vijayakumar said during the company's earnings call on Monday.
