TCS Tightens Bench Policy to Boost Utilization Amid Industry Slowdown
Tata Consultancy Services (TCS), India’s largest IT services company, has introduced a revised employee deployment policy aimed at minimizing bench time and maximizing productivity. The new mandate requires associates to log at least 225 billable days per year, effectively capping bench time at 35 days.
The policy, effective from June 12, 2024, was communicated internally by Chandrasekaran Ramkumar, Global Head of Resource Management Group (RMG). This move comes as the IT sector faces sluggish growth due to macroeconomic uncertainties, prompting firms to optimize workforce efficiency.
Key Highlights of TCS’s New Bench Policy
1. Mandatory 225 Billable Days Per Year
- Employees must be allocated to projects for at least 225 working days annually.
- Those failing to meet this requirement may face:
- Salary impacts (reduced bonuses or increments)
- Delayed promotions
- Limited overseas opportunities
- Potential job risks
2. Proactive Employee Responsibility
- Associates must actively engage with RMG to secure project assignments.
- No passive waiting—employees must seek roles aggressively.
3. Strict Training Requirements for Unallocated Staff
- Employees on the bench must spend 4-6 hours daily on upskilling platforms like:
- iEvolve
- VLS (Velocity Learning System)
- Fresco Play
- Mandatory completion of Gen AI interview coaching and other modules.
4. Freshers Must Be Allocated from Day One
- New hires should be assigned projects immediately.
- If not, they must escalate to RMG without delay.
5. Crackdown on Short-Term Project Hopping
- Frequent switching between short-term projects may trigger HR intervention.
- Could lead to disciplinary action if deemed unproductive.
6. Remote Work Restrictions
- Work from office (WFO) is now the default.
- WFH exceptions require prior RMG approval (only for emergencies).
Why Is TCS Enforcing This Policy Now?
- Industry-Wide Cost Optimization
- IT firms are reducing bench strength amid slowing demand.
- TCS reported a 3.2% YoY revenue growth in Q4 2024, signaling cautious spending by clients.
- Pressure to Improve Margins
- High bench time = lower profitability.
- TCS aims to maximize billable hours to sustain margins.
- AI & Automation Reducing Manual Work
- With Gen AI tools, fewer employees are needed for repetitive tasks.
- Upskilling is now mandatory to stay relevant.
Employee Reactions & Concerns
- Mixed responses—some see it as a necessary efficiency measure, while others fear job insecurity.
- Freshers worry about immediate project pressure.
- Mid-level employees concerned about career stagnation if unallocated.
What Should TCS Employees Do Now?
✔ Proactively seek projects—engage with RMG regularly.
✔ Upskill aggressively—leverage TCS learning platforms.
✔ Avoid frequent project switches—longer assignments preferred.
✔ Prepare for office work—WFH flexibility reduced.
Final Thoughts
TCS’s new 225-day billing mandate reflects the changing dynamics of the IT industry, where utilization trumps idle bench time. Employees must adapt quickly to remain competitive in this stricter work environment.
What do you think about TCS’s new policy? Share your views in the comments!
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