TCS Implements New Benching Policy, Leaving Employees in Uncertainty and Concern

Tata Consultancy Services (TCS) is facing employee unrest as its new benching policy raises concerns about potential layoffs. With the first phase of this policy concluding, many employees have taken to social media to voice their anxieties regarding job security and future assignments. The policy, which limits non-billable periods to 35 days annually, has sparked discussions about its implications for the workforce, with reports of employees struggling to find suitable projects and fearing professional setbacks.

Understanding the TCS Benching Policy

The TCS benching policy, which came into effect on June 12, aims to encourage employees to take charge of their careers. K. Krithivasan, TCS’s CEO and Managing Director, explained that while the company supports project placements, employees are expected to actively seek new assignments after completing their current ones. He emphasized that this policy is a more structured approach to an existing practice, aimed at minimizing bench time. The company has made significant investments in employee development and expects to deploy staff based on their training, demand, and skill alignment. However, Krithivasan did not address concerns regarding salary withholding for employees on extended bench periods, leaving many questions unanswered.

Concerns Among Employees

As the new policy unfolds, TCS employees have expressed their worries about job security. Many have reported challenges in securing project assignments that align with their skills. Some employees have shared their experiences on platforms like Reddit, highlighting issues such as urgent project searches and mismatched assignments. A new recruit mentioned feeling pressured to join a support project unrelated to their training in Java, raising concerns about the company’s approach to employee placement. The financial implications of the policy remain unclear, but employees fear that failure to secure projects within the stipulated time could lead to job loss or other professional setbacks.

Impact on the Workforce

The repercussions of the benching policy on TCS’s workforce are still uncertain. Industry data suggests that around 15-18% of employees at major Indian IT firms typically remain on the bench. TCS, which employs approximately 613,000 individuals, has come under scrutiny from labor rights organizations. Recently, the Nascent Information Technology Employees Senate (NITES) approached the Union labor minister, describing the policy as “inhumane” and “exploitative.” They claim that TCS is pressuring benched employees with threats of termination and withholding experience certificates if they fail to secure assignments promptly. NITES president Harpreet Singh Saluja emphasized that these employees are skilled professionals temporarily without allocation, deserving support rather than coercion.

Broader Industry Implications

The introduction of TCS’s stringent benching policy may signal a shift in the IT sector, particularly as artificial intelligence (AI) begins to reshape operational practices. Experts predict that IT companies will adopt stricter bench policies in response to a challenging business environment and the demand for advanced skill sets driven by AI. The need for companies to align employee skills with evolving client requirements is becoming increasingly critical. As organizations reassess their bench policies, there is a growing emphasis on encouraging employees to reskill and remain relevant in high-demand areas such as AI and cybersecurity. This shift may lead to a reevaluation of traditional promotion and merit increase practices, focusing instead on skills proficiency and competencies necessary for new roles.

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