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The Dreaded Bench of Indian IT
- Indian IT companies like TCS, Wipro, Infosys, and HCLTech have been cutting bench sizes and timing to address slowing revenue growth.
- The average bench time has decreased to 35-45 days, and bench sizes are expected to decrease by 22% in the next two years.
- Employees express frustration on social media about delays in onboarding and being on the bench without work assignments.
- Benching employees have reduced from 10-15% to 2-5%, indicating a significant downsizing of the reserve workforce capacity.
- Older employees with legacy skills face high risk of bench-related layoffs as companies prioritize talent with niche skills like AI.
- Infosys revealed a 20% increase in bench size due to reduced demand, highlighting market conditions impact on bench sizes.
- Indian IT firms are pushing for higher utilisation rates, creating a more demanding environment for professionals.
- Infosys reported utilisation rates of 80.7% for FY24, with plans to onboard 15,000 to 20,000 freshers in FY25.
- Some IT companies aim to eliminate benches completely, putting pressure on staffing firms to manage engagements.
- Redeployment initiatives are implemented by some companies like Mahindra Satyam and Tech Mahindra, but remain exceptions in the industry.
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