In a timely and thought-provoking conversation between Usha Chirayil, Senior Director–HR at Reflections Info Systems, and Romesh Srivastava, Editor-in-Chief of SightsIn Plus, the recent overhaul of bench policies in India’s IT services sector came into focus—specifically the changes introduced by Tata Consultancy Services (TCS) in June 2025.
With a sharper emphasis on productivity and employability, TCS now mandates that employees must be billed for at least 225 business days annually, limits bench time to 35 days, and enforces 4–6 hours of daily upskilling during bench periods, alongside active engagement with the Resource Management Group (RMG).
The discussion delves into the broader implications of these shifts—exploring themes of workforce agility, industry response, union reactions, and the future of employability in the IT industry.
What is the General Approach to Bench Policy and its Purpose in IT Companies?
In IT companies—especially IT services firms—the bench policy governs how long employees can remain unutilized between projects.
While some individuals are benched temporarily in anticipation of upcoming assignments, others may face longer durations due to skill mismatches or past performance issues.
Being on the bench essentially reflects a person’s current deployability in relation to project needs.
Given the pace of technological change, IT professionals are expected to upskill every 6 months to stay relevant.
Those who fail to evolve may plateau, making redeployment challenging. In earlier years, companies could afford extended bench time without impacting profitability.
However, market uncertainties and increased pressure on margins have led to stricter scrutiny.
Today, organizations evaluate whether benched employees are trainable or adaptable.
If an individual shows readiness to reskill and contribute, efforts are made to reintegrate them.
Conversely, prolonged disengagement without signs of improvement often prompts companies to take corrective action.
Thus, bench policy serves both as a workforce optimization tool and a measure of employee employability.
Do You Think Employees Are Misusing the Bench Policy, Prompting Companies to Revise It?
While bench policy misuse may not always be deliberate, growing inflexibility among employees has prompted companies to revisit it.
Some professionals prefer working only within familiar domains or outdated skill sets, declining projects that fall outside those boundaries.
Others resist relocation or hybrid work requirements, leading to missed deployment opportunities.
These preferences result in extended bench periods, even as companies continue to bear salary costs without billing recovery.
In response, organizations are enforcing tighter policies and clearer timelines for redeployment.
If employees consistently decline available projects without demonstrating adaptability or willingness to reskill, firms are now compelled to take action, either through mandatory project allocation or exit from the organization.
It’s a shift toward financial prudence and workforce discipline.
An Industry Expert, Milind Mutalik, Former Chief People Officer, Accolite Digital said, “As per the news, the utilization ratio by TCS is 75.1% including trainees and 82.4% excluding trainees/”
“The productivity & efficiency helping topline & bottom line would come only when the current & future utilzation is linear ! Thus where ever the talent is directly linked to revenue the bench policy needs to be implemented for the right balance due to cut throat competitive business worldwide.” he added.
How Does TCS New Bench Policy Influence Other Companies?
TCS new bench policy could influence other large software services firms to adopt similar measures.
While each company has its own framework for managing bench duration, industry-wide pressure to optimize resources may lead peers to tighten their policies as well.
Just as return-to-office trends gained traction through collective adoption, bench timelines may now be more firmly defined and shortened, accelerating a shift already underway across the sector.
Watch Full YouTube Video Here:
How Do You See Employee Unions’ Point of View Regarding Bench Policy Changes?
Employee unions have a valid perspective on these policy changes, especially in cases of unfair dismissals.
However, given the unsustainability of inflated bench strength, it’s pragmatic for unions to focus on advocating selectively rather than opposing inevitable restructuring.
In IT services, employability and readiness for redeployment are essential.
Upskilling during bench time offers a more practical and constructive approach than raising protests.
The tightening of such policies has been anticipated across the IT industry for quite some time.
How Do You See Transformation in Bench Policies in 2025?
Bench policy transformations in 2025 reflect a sharper articulation of a long-standing principle: employability.
In the IT industry, rapid technological evolution means no skillset remains relevant for decades.
Professionals must now continuously assess their relevance in a rapidly changing industry.
They can do this by staying hands-on with emerging technologies or by building expertise in project management, delivery, or specific domains.
The pace of change has intensified, making upskilling essential for redeployment.
Those who remain agile and adaptable will always find opportunities, while complacency increasingly leads to longer bench time or exits.
These policies reinforce a pragmatic shift toward sustained relevance and contribution in a competitive services landscape.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.