Tata Consultancy Services (TCS) has introduced a significant shift in its workforce management strategy, mandating that employees be billed for a minimum of 225 business days annually, effectively reducing permissible bench time to just 35 days. The move, confirmed via an internal communication reviewed, is aimed at tightening operational efficiency and cutting costs associated with non-billable resources—estimated to account for 8–10% of the company’s payroll.
“At any given point in time, associates must have been allocated for a minimum period of 225 business days in the last 12 months,” the internal note stated.
The policy comes at a time when global IT spending is under pressure from macroeconomic uncertainties and rising automation, prompting firms like TCS to recalibrate talent deployment strategies. Milind Lakkad, Chief HR Officer at TCS, previously cited these economic headwinds as a factor behind deferred appraisal decisions.
Industry leaders suggest the policy is part of a larger shift toward a leaner, AI-augmented workforce. Alouk Kumar, CEO of Inductus Group, noted that enterprise clients now demand AI-powered, rapid turnaround solutions, requiring companies to optimize their talent base for high-value, tech-led engagements.
“Forrester’s Biswajeet Mahapatra** added that while the policy doesn’t explicitly mandate AI integration, it underscores a growing emphasis on upskilling in AI, automation, and emerging technologies.
TCS has already launched a large-scale reskilling initiative, with 350,000 employees undergoing training in AI/ML, cloud platforms, and digital technologies via tools like Azure AI and AWS SageMaker. However, the pivot is creating unease, particularly among mid-career professionals and those in legacy roles, who now face reduced bench flexibility and heightened performance scrutiny.
Neeti Sharma, Co-founder of TeamLease Edtech, remarked, “Organisations are looking for freshers who are not just digitally literate but also have skills to use and create AI and GenAI tools.”
As the global tech landscape evolves, TCS’s new policy signals a broader industry trend: higher uti
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