India’s largest IT services provider, Tata Consultancy Services (TCS), has introduced a new internal policy in June 2025 that is already causing a stir across the IT sector. The policy sets a hard limit on how long an employee can remain “on the bench”—unassigned to a billable project. If they are not allocated work within 35 calendar days, they may face serious consequences, including termination.
This move is being seen as part of a broader industry trend where productivity, utilization rates, and workforce agility are becoming core business priorities amid economic uncertainties and the rising influence of artificial intelligence (AI).
What Is a Bench Policy?
In IT services companies, a "bench" refers to employees who are not currently deployed on any project. They are usually waiting to be assigned to new client work. Bench time is common during transitions between projects or in cases of project delays, cancellations, or shifting client needs.
Until now, many firms, including TCS, maintained flexible, informal durations for bench time, allowing employees weeks or even months to secure new roles internally.
What’s New in TCS’s 35‑Day Rule?
Starting June 12, 2025, TCS has implemented a policy that caps unassigned (bench) time at just 35 days per year. Here's a breakdown of the major changes:
- Hard Deadline: If an employee fails to secure a new internal project within 35 calendar days, they may be flagged for exit from the company.
- No Extensions: Unlike older policies, this rule doesn’t offer generous extensions unless under exceptional circumstances.
- Accountability: The onus is now largely on employees to proactively seek internal roles, upskill, and network within the company to avoid being benched too long.
Why Did TCS Introduce This Policy?
TCS has not publicly detailed every rationale behind the move, but several key factors are evident:
1. Optimizing Utilization Rates
Bench time is often seen as lost productivity. By setting a firm limit, TCS aims to improve its utilization rate, an important metric for investors that indicates how efficiently human resources are being used.
2. Cost Control
Unutilized employees still draw salaries, adding to operational costs. Reducing bench time can help cut expenses—especially important when global clients are tightening IT budgets.
3. Increased Competition & Client Expectations
Clients increasingly expect leaner, more agile delivery teams. TCS is likely responding by pushing employees to be project-ready and available for rapid deployment.
4. Post-Pandemic Workforce Restructuring
After the hiring surge during the pandemic and digital transformation wave, many IT companies are recalibrating their workforce sizes to align with new business realities and automation trends.
Employee Reactions: Anxiety and Uncertainty
While TCS presents this as a move toward efficiency, employee forums and social platforms tell a different story. Many workers, especially those who were recently rolled off long-term projects, are concerned about the unrealistic timeline to secure another role.
“There aren’t enough open positions internally, especially for niche skillsets. Thirty-five days just isn’t enough,” said a TCS employee on condition of anonymity.
Others are worried about internal politics, saying project leads may prefer known resources, making it harder for benched staff to get selected quickly.
Challenges Employees Are Facing
- Limited Open Roles
- Some departments simply have fewer project openings, making placement tough even for skilled workers.
- Lack of Transparency
- Employees claim that open project roles aren't always posted uniformly or clearly.
- Need to Upskill Fast
- Employees now feel immense pressure to upskill in AI, cloud, or DevOps areas to remain competitive internally.
- Remote Work Impact
- In a hybrid or remote model, networking and visibility inside the company becomes harder, affecting job placement chances.
Broader Industry Impact
TCS's policy could set a precedent for other IT majors like Infosys, Wipro, and HCLTech. Already facing margin pressures and AI disruptions, these firms may adopt similar strict utilization policies in the coming months.
If that happens, the Indian IT landscape could see:
- Faster job churn
- Higher stress levels
- Shorter transition periods
- Increased contract or gig-style tech employment
What Should Employees Do?
Here are key action items for TCS employees and IT professionals across the board:Stay Alert to Internal Openings
- Monitor TCS’s internal portals regularly. Proactively reach out to project managers and delivery leads.
- Focus on in-demand areas like AI/ML, cloud computing, cybersecurity, and DevOps.
- Be ready to move quickly—within TCS or outside—if bench time gets close to 35 days.
- Connect with senior employees who can refer or recommend you open roles.
Conclusion
TCS's 35-day bench policy marks a significant shift in how IT companies may manage workforce deployment going forward. While it aims to promote efficiency and reduce non-billable overheads, the policy has undeniably caused anxiety among thousands of employees. With the IT sector evolving fast due to automation, economic shifts, and global pressures, adaptability and continuous learning are now essential for tech professionals to survive and thrive.
Keywords:
- TCS bench policy 2025
- IT layoffs in India 2025
- TCS 35-day rule explained
- TCS employee termination policy
- IT industry job security India
- How to survive bench period in IT
