Tata Consultancy Services (TCS) has introduced a major overhaul of its talent deployment policy, mandating that all employees be billed for at least 225 business days annually, effectively capping bench time to 35 days. The internal communication, verified by AIM, warns that failure to meet this target could result in disciplinary actions, including performance-based exits, salary freezes, or deferred appraisals.
TCS Targets Bench Cost Reduction with AI-Focused Utilisation and Immediate Deployment
The benching system, long common in Indian IT firms, refers to employees on payroll but not allocated to active projects. TCS aims to minimise this practice in a bid to improve resource utilisation, manage bench-related costs—estimated to be 8–10% of payroll—and strengthen business margins amid sluggish global IT spending. The policy is driven by a need for greater accountability and agility, especially as clients increasingly demand AI-integrated and faster project delivery.
TCS is tying employee performance directly to billable work through regional general managers (RGMs) and utilisation dashboards. All new joiners are expected to be deployed from day one, and any deviation must be escalated immediately. As AI and automation reduce the demand for low-skill roles, the company is actively reskilling over 3.5 lakh employees in areas like AI/ML, GenAI, Azure AI, AWS SageMaker, and low-code platforms.
AI Push Raises Stress, Flexibility Concerns at TCS
This aggressive shift towards an AI-driven future reflects a broader trend in the IT industry, moving from labour arbitrage to innovation-led growth. However, it raises concerns. Employees in traditional roles like legacy Java may face tougher internal competition, and mandatory work-from-office (WFO) policies combined with strict bench time caps may increase stress and attrition, particularly among mid-level professionals.
Critics on Reddit and LinkedIn warn that such rigid utilisation targets could lead to employee coercion into irrelevant projects and reduced flexibility. Others argue that TCS must pair structured learning with mentorship and realistic timelines to succeed.
TCS Policy Signals Shift in IT Talent Landscape and AI-Readiness Divide
In the long term, the policy may reshape India’s IT talent landscape, urging both academic institutions and professionals to adapt. While promoting skill development and business efficiency, the policy also spotlights the growing inequality between AI-ready talent and others, serving as a snapshot of the IT sector’s evolving expectations in a tech-driven world.
Summary:
TCS has overhauled its talent deployment policy, requiring employees to be billable for 225 days annually, limiting bench time to 35 days. The move aims to cut costs, boost AI-driven efficiency, and push reskilling. However, it raises concerns over stress, job flexibility, and growing inequality between AI-ready and traditional tech roles.
Source – https://trak.in/stories/tcs-new-hires-will-be-allocated-projects-from-day-1/