As the first 35-day cycle under Tata Consultancy Services’ (TCS) new bench policy ends on Thursday, thousands of employees are facing uncertainty and anxiety, as per a report by The Economic Times. ET highlights that many of the employees have taken to social media platforms like Reddit to share their concerns about career growth, project allocation, and job security.
TCS limits bench time to 35 days under new policy
TCS implemented the new policy on June 12, capping the maximum time an employee can stay on the bench — without a project — to 35 days per year. Employees who exceed this limit face the risk of demotion or termination.
According to The Economic Times, some employees are scrambling to get into projects, and others allege they are being pushed into roles that don’t match their skill sets. “I was trained in Java, but now I’m being forced into a support project that has nothing to do with Java or Python,” a fresher wrote on Reddit.
Another Reddit user warned, “This is the first step towards employment rationalisation based on utilisation. Brace for layoffs.”
The Economic Times noted that they could not independently verify the claims made on these platforms.
While the number of TCS employees affected is not clear, industry estimates suggest that 15 to 18 per cent of employees at large Indian IT companies are typically on the bench, according to The Economic Times. TCS, which is India’s largest IT firm, has over 6.1 lakh employees.
Employee body seeks government intervention
ET now said that amid rising concerns, the Nascent Information Technology Employees Senate (NITES) has written to Union Labour Minister Mansukh Mandaviya, urging him to take action against what it calls an “inhumane” policy.
In a letter to the minister, NITES president Harpreet Singh Saluja said, “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.”
The letter also accused TCS of threatening employees with termination and denial of experience letters if they fail to meet “unrealistic deployment timelines.”
Some employees defend TCS’s bench policy change
However, not all employees are against the policy. ET highlights that some Reddit users defended the move, saying that many people stay on the bench for years, avoiding project offers and using the time for personal benefit.
“This may help TCS trim some seriously underperforming resources, those stuck on TCS like a leech,” one post read.
TCS CEO defends policy as structured approach
TCS CEO and MD K Krithivasan told Times of India that the policy is simply a more structured version of what has long been expected at the company.
“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,” Krithivasan said.
He added that TCS invests heavily in upskilling and aims to minimise bench time. “While preferences are considered, projects are driven by client needs, not personal choice. We deploy based on training, demand, and skill alignment.”
However, he did not confirm whether the company has started withholding salaries of employees who remain benched beyond the deadline.
Business slowdown and AI shift influencing decisions
TCS, like other IT companies, has been struggling with macroeconomic uncertainty and reported its third straight quarter of degrowth last week. At the same time, artificial intelligence (AI) is automating many repetitive tasks, reducing the need for entry-level engineers.
“IT companies are likely to tighten their bench policies due to the soft business environment and rising demand for advanced skills,” said Pareekh Jain, founder and CEO of IT consulting firm EIIRTrend. “Employee costs are significantly impacting margins.”
More companies may follow suit
Experts believe that TCS’ stricter policy may influence other IT companies. As AI boosts productivity, many firms are finding it harder to redeploy junior engineers.
“Tech companies must continuously align their employees’ skill sets with evolving client needs,” said Nitin Bhatt, technology sector leader at EY India, writes ET. “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.”
He added that future promotions and salary hikes may depend more on skills and proficiency than tenure or job grade.
Rising costs, falling utilisation impact IT firms
TCS reported that its employee costs reached an all-time high of Rs 37,715 crore in the first quarter ended June. This accounted for nearly 60 per cent of the company’s revenue, while attrition stood at 13.8 per cent.
The company’s CFO Samir Seksaria said that employee utilisation was impacted last quarter, affecting margins.
HCLTech also saw a drop in utilisation due to delays in project ramp-ups and skill mismatches. “We encountered ramp downs in specific areas, resulting in a larger bench,” said HCLTech MD and CEO C Vijayakumar during the company’s earnings call.
As bench strength grows and the business environment remains tight, experts believe India’s IT sector is entering a new era — one where performance, agility, and upskilling will be the keys to survival.
