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News18
4 days ago
- Business
- News18
TCS Salaries For Freshers, New Bench Policies And More
1/8 The IT giant introduced an associate deployment policy that requires a minimum of 225 billed business days each year for every employee, effectively capping bench time at 35 business days annually. (File Pic) Reportedly, the policy, effective from June 12, aims to minimise idle time and optimise workforce utilisation. (AI generated image) In case an employee does not work for at least 225 business days within the past 12 months and has longer unallocated periods or exceeds 35 business days per year, it will affect their compensation, career advancement, opportunities for overseas deployment, and employment prospects at TCS, according to reports. (AI generated image) 4/8 After a month of execution, the policy raised concerns among the IT union. NITES stated that the TCS employees have raised serious concerns regarding the new bench policy. (AI generated image) It added that the policy has created an atmosphere of fear, coercion, and immense psychological pressure within the organisation. (AI generated image) It alleged that employees between projects, commonly referred to as being on the bench, are pushed to find new projects continuously, with little to no support from the company's internal systems. (File Pic) The union also stated that several employees are being asked to resign if they fail to find a project within thirty-five days of being on the bench. (AI generated image) 8/8 Fresher's Salaries: According to Assistant System Engineer Trainee's salary ranges from Rs 2.8 L/year to Rs 4.3 L/year; System Engineer: Rs 3.9 L/ year – Rs 7.6 L/year; Assistant System Engineer: Rs2.5 L/yr – Rs 5 L/yr; Software Developer: Rs 6.7 L/yr – Rs 10 L/yr; Software Engineer: Rs 5.2 L/yr – Rs 9.2 L/yr; Associate Systems Engineer: Rs 3 L/yr to Rs 4.5 L/yr.
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.
India Today
5 days ago
- Business
- India Today
TCS benching policy sparks fear among employees after first cycle: Report
Tata Consultancy Services (TCS) has completed the first round of its new bench policy, and many employees are now feeling anxious about their future at the policy, introduced on June 12, limits the time employees can remain without project work to just 35 days. After this, they face the risk of losing out on promotions or even losing their workers have taken to social media platforms like Reddit to share their worries. Some say they are being pushed into projects that do not match their skills. Others complain about being rejected by clients during interviews or being asked to work in cities far from their home post said, 'This is the first step towards employment rationalisation based on utilisation. Brace for layoffs.'Another user, who recently joined the company, wrote, as quoted by The Economic Times, 'I was trained in Java, but within a month of being on the bench, I was being forced into a support project that doesn't use Java or Python.'There is no official number on how many employees might be affected. However, industry experts say that about 15–18% of workers in top Indian IT firms are usually on the bench. With a workforce of around 6.13 lakh employees, the impact at TCS could be employee rights group, the Nascent Information Technology Employees Senate (NITES), has raised the issue with the government. In a letter to Labour Minister Mansukh Mandaviya, NITES called the policy 'inhumane' and 'exploitative.' The group accused TCS of threatening employees with job loss and denying them experience letters if they fail to find a new project in time.'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,' said NITES president Harpreet Singh the other hand, some voices on Reddit support the move, claiming that some staff have misused the bench system. 'This may help TCS trim some seriously underperforming resources, those stuck on TCS like a leech,' one user response to the growing concerns, TCS CEO and MD K Krithivasan told The Times of India that the policy simply makes an old practice more structured. 'It's always been expected that associates take responsibility for their careers,' he said. 'While HR supports project placement, we also expect associates to proactively seek new assignments after completing existing ones.'He added that TCS invests in training its employees and wants to see them deployed after that. 'Projects are driven by client needs, not personal choice. If skill gaps exist, we try to close them before deployment.'Krithivasan did not answer questions about whether TCS has stopped salaries for employees on the bench for long to a report by The Economic Times (ET), the company is facing pressure from rising employee costs and slower business growth. TCS recently reported its third quarter in a row of decline. At the same time, artificial intelligence (AI) is automating many routine IT tasks, making it harder to place entry-level engineers.'IT companies are likely to get stricter with bench policies because of soft business conditions and a shift toward high-demand skills,' said Pareekh Jain, founder and CEO of IT consulting firm EIIRTrend. He added that employee costs are affecting company profits, so tighter rules may follow across the experts agree. Nitin Bhatt, who leads the technology sector at EY India, said that tech companies are now asking employees to upgrade their skills to match changing client needs. 'By revisiting bench policies, companies are pushing workers to reskill in areas like AI, cybersecurity, and digital engineering,' he also believes that in the future, promotions and pay raises will be based more on skills than on job titles or years of Chief Financial Officer Samir Seksaria recently told ET that employee utilisation at the company had dropped, leading to a hit on profits. The company's wage bill touched an all-time high of Rs 37,715 crore in the April–June quarter, making up nearly 59.5% of its revenue. Attrition also remained high at 13.8%.Rival firm HCL Technologies is also feeling the pressure. It saw a fall in profit margins due to delays in project starts and skill-location mismatches, its CEO C Vijayakumar said during a recent earnings call..- Ends advertisement
