TCS New Bench Policy: How Benching Impacts IT Sector?

Tata Consultancy Services (TCS) has rolled out a new talent deployment policy in 2025, reflecting a clear shift toward tighter workforce utilisation and performance accountability. Under the updated framework, all employees are now required to be allocated to billable work for at least 225 days within a 12-month period. The allowable non-billable “bench” time has been limited to just 35 business days.

Let’s take a look at what this policy change means for employees and how it fits into the evolving landscape of the IT industry.

Bench Time in the IT Industry: A Changing Landscape

Benching has traditionally acted as a buffer for IT companies, offering flexibility in project staffing and talent retention. However, evolving technology and shifting market dynamics are now transforming this approach.

Factors such as:

• Automation and AI reducing low-skill demand.
• Pressure to improve margins amid slower global IT spending.
• Shift from headcount-based billing to outcome-driven contracts.

These shifts are pushing IT firms to rethink how they deploy and retain talent. As companies move toward leaner, skill-driven models, bench policies may become stricter across the industry not just at TCS.

What Do Bench Policy Shifts Mean for IT Employees?

As IT firms revise their bench policies, employees may see changes in how project allocations and performance metrics are managed.

These shifts generally reflect an industry-wide move toward optimising resource utilisation in a competitive and evolving market. While such policies aim to enhance efficiency and business alignment, they may also lead to a more structured work environment where performance indicators play a larger role in day-to-day operations.

Overall, these developments highlight how workforce management in the IT sector is adapting to new business and technological realities.

IT Industry Outlook and Strategic Shift

This change comes amid a broader industry transformation. As global IT spending is forecast to grow at a modest 6.8% in 2025, companies are looking to do more with less.

Read More: What Is Benching in the IT Industry? TCS’s New 35-Day Rule Explained.

Conclusion

The new bench policy introduced by TCS signals a larger shift in how IT companies are managing talent and aligning workforce deployment with evolving business needs. While this move may drive greater accountability and efficiency, it also reflects the broader challenges facing the IT sector rising automation, tighter budgets, and demand for more specialised skills.

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