India’s leading IT companies, including Tata Consultancy Services (TCS), Wipro, and Infosys, are undergoing significant workforce restructuring as they reduce bench sizes to address slowing revenue growth and margin pressures. This move has raised concerns about potential layoffs, particularly for employees with legacy skills.
In the IT industry, “bench time” refers to the period when employees are on payroll but not assigned to active client projects. These employees serve as a reserve workforce, ready to be deployed when project demand surges. However, with business expansion slowing, companies have been optimizing costs by reducing bench sizes. Reports indicate that the average bench time has dropped from 45-60 days during FY20-21 to just 35-45 days currently.
The shift towards leaner workforce models has been driven by hyper-hiring in 2021 and 2022, which led to lower utilization rates. To counter this, IT firms have focused on improving resource utilization, which now stands at an optimal mid-to-high 80% range. Employees with expertise in emerging technologies like artificial intelligence (AI), machine learning, and cloud computing remain in high demand, while those with legacy skills face a higher risk of layoffs if they remain on the bench for extended periods.
Industry experts predict that bench size reductions will continue through 2026 as IT companies adapt to changing business dynamics. This trend underscores the growing importance of upskilling and transitioning to in-demand roles in the evolving tech landscape.
As the IT sector navigates these challenges, employees are urged to stay agile and invest in skill development to remain competitive in a rapidly transforming industry.
