TCS faces backlash over new benching policy as employees fear layoffs
MUMBAI, INDIA — Tata Consultancy Services (TCS) is facing criticism as its new benching policy sparks employee unrest, with workers fearing job insecurity and being assigned to mismatched tasks.
The policy, which caps non-billable periods at 35 days annually, has drawn criticism from labor groups, who call it “exploitative” and “inhumane” amid broader shifts in the IT industry toward stricter workforce management.
Employee unrest grows as TCS tightens bench policy
A new hire trained in Java, for example, claimed they were pushed into a support project unrelated to their expertise, fueling concerns about forced placements.
The policy, introduced on June 12, is framed by Chief Executive Officer (CEO) K. Krithivasan as a push for employees to take charge of their careers. Still, ambiguity remains unresolved regarding salary withholding and job security.
Labor group Nascent Information Technology Employees Senate (NITES) has escalated the issue, accusing TCS of coercion and threatening terminations for those who fail to secure assignments quickly.
With TCS employing over 613,000 people—15% to 18% of whom are typically on the bench—the policy could have widespread repercussions for job stability.
Broader IT industry shift toward stricter bench management
The policy in TCS is part of a broader movement in the IT industry, with vendors becoming more stringent with their bench rules to keep pace with the evolving needs of clients and the efficiencies brought about by AI.
Experts suggest that this may become increasingly standard in industries, as companies focus on reskilling in in-demand disciplines such as AI and cybersecurity, rather than relying on other common retention measures. The action is a step toward competency-centered workforce planning, rather than basing it on tenure.
The recent backlash with TCS indicates an increased tension in the business’s attempt to consider not only efficient operation but also the welfare of employees. NITES has addressed an appeal to the Government of India, specifically to the Labor Minister, terming this policy as inhumane.
Analysts have stated that such a move will have a negative impact on employer-employee bonding.
As AI reshapes IT workflows, the industry’s approach to bench management could redefine job security and skill development for millions of workers globally.
TCS recently ranked #8 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
