Mumbai, June 17, 2025: Tata Consultancy Services (TCS), India’s largest IT services company, has implemented a transformative Associate Deployment Policy effective June 12, 2025, aimed at optimizing workforce utilization and enhancing employee productivity. The policy mandates that employees be billed for a minimum of 225 business days annually, effectively capping bench time—periods when employees are unallocated to projects—at 35 days per year. This significant shift, announced amid a dynamic IT services landscape, impacts compensation, career progression, and work arrangements, reflecting TCS’s strategic focus on operational efficiency and adaptability in a competitive global market.
Key Features of the New Policy
The new policy introduces several critical changes to how TCS manages its workforce of over 600,000 employees, emphasizing accountability, continuous learning, and physical office presence. Below are the core components of the policy and their implications for associates.
1. Limited Bench Time: 35 Days Maximum
Under the new policy, TCS employees must be actively engaged in billable client projects for at least 225 business days per year, reducing the permissible bench period to just 35 days. Previously, bench periods could extend longer, particularly during project transitions or client onboarding delays. This change aligns with TCS’s goal to minimize idle time and maximize revenue generation, especially as the IT industry faces pricing pressures and evolving client demands. The policy applies across all levels, from entry-level associates to senior professionals, signaling a uniform push for productivity.
2. Associate Responsibility During Unallocated Periods
The policy places the onus on employees to proactively secure project assignments during unallocated periods. According to the internal document, “In the event an associate is unallocated, it is the primary responsibility of the associate to engage with the Unit/Regional Resource Management Group (RMG) for seeking allocation and pursue suitable opportunities provided by the organization.” This shift encourages employees to take initiative, leveraging TCS’s internal job portals and networking with RMG teams to align with available projects. Failure to secure assignments within the 35-day window could impact performance evaluations and variable pay, which is tied to billable hours.
3. Mandatory Upskilling on the Bench
For employees on the bench, TCS has mandated a structured upskilling regimen to ensure readiness for future projects. Associates are required to dedicate 4–6 hours daily to learning through internal platforms like iEvolve, Fresco Play, and Virtual Learning System (VLS), as well as external platforms such as LinkedIn Learning and Coursera. The policy emphasizes completing all assigned training modules, attending recommended in-person sessions, and regularly updating skills to stay competitive in areas like artificial intelligence (AI), cloud computing, and cybersecurity.
TCS has also introduced its Gen AI interview coach, a tool designed to simulate client interviews and provide feedback. Associates must address interview feedback promptly and complete mandatory certifications, ensuring they are “project-ready” at all times. This focus on upskilling reflects TCS’s broader strategy to prepare its workforce for emerging technologies, with the company reporting that 80% of its employees were trained in generative AI by March 2025.
4. Work-from-Office as Default
In a significant departure from flexible work arrangements, TCS has mandated that work-from-office (WFO) is now the default mode for all employees. The policy states, “To enable faster project deployment, physical office presence is compulsory.” Work-from-home (WFH) or hybrid arrangements are permitted only in exceptional circumstances, such as personal emergencies, and require prior approval from the RMG and adherence to organizational policies. This move aligns with TCS’s earlier push to bring employees back to offices, with 70% of its workforce already adhering to a three-day WFO mandate by December 2024. The policy aims to streamline collaboration, accelerate project onboarding, and foster a cohesive work environment.
5. Discouraging Short-Term Project Assignments
TCS has also cautioned against employees taking up multiple short-term project assignments, which can disrupt project continuity and client satisfaction. The policy encourages longer-term engagements to ensure stability and deeper client relationships, a critical factor as TCS competes with global rivals like Accenture and Infosys. Associates are urged to prioritize projects aligned with their skill sets and career goals, reducing the practice of “bench hopping” between short-term roles.
Implications for Employees
The new policy introduces both opportunities and challenges for TCS employees:
- Compensation and Career Growth: Variable pay, a significant component of TCS’s compensation structure, is directly linked to billable hours. Employees who exceed the 225-day billing requirement may see enhanced payouts, while those unable to secure sufficient project time risk reduced earnings. Career progression, including promotions, will also factor in an employee’s ability to minimize bench time and demonstrate continuous learning.
- Upskilling Pressure: The mandatory upskilling requirement places additional responsibility on employees to stay current with industry trends. While this enhances employability, it may strain associates balancing training with job search efforts during bench periods.
- Work-Life Balance: The WFO mandate could impact work-life balance, particularly for employees accustomed to hybrid arrangements. Those in remote locations or with personal commitments may face challenges, though TCS’s provision for short-term flexibility offers some relief.
- Job Security Concerns: Prolonged bench time beyond 35 days could lead to increased scrutiny from managers, potentially affecting performance reviews. However, TCS’s robust RMG system and internal job market aim to mitigate this by facilitating quicker project allocations.
Strategic Context and Industry Trends
TCS’s policy comes at a time when the IT services industry is navigating a complex landscape. Global economic uncertainties, including geopolitical tensions and rising inflation, have led clients to tighten IT budgets, putting pressure on firms to optimize costs. TCS reported a 7% revenue growth in FY25, reaching ₹2.52 lakh crore, but faces challenges from competitors offering aggressive pricing. The policy aligns with TCS’s “Vision 2025” strategy, which emphasizes operational efficiency, digital transformation, and workforce agility.
The focus on reducing bench time reflects industry-wide trends, with peers like Infosys and Wipro also tightening resource allocation policies. A recent Nasscom report noted that Indian IT firms are targeting 85%+ workforce utilization rates to counter margin pressures. TCS’s emphasis on upskilling, particularly in AI, positions it to capitalize on the projected $250 billion global AI services market by 2027. Posts on X from industry analysts like @ITInsightsIndia praised the move, stating, “TCS’s bench policy is a bold step to stay lean and future-ready in a hyper-competitive market.”
Employee and Market Reactions
The policy has sparked mixed reactions. Some employees expressed concerns on internal forums about the reduced bench period, citing challenges in securing projects during short transition windows. Others welcomed the push for upskilling, with one associate commenting, “The Gen AI training is a game-changer for career growth.” On the market front, TCS shares dipped 0.8% to ₹4,120 on the BSE on June 17, 2025, amid broader market volatility following geopolitical tensions and the Sensex’s 1,100-point crash.
Analysts remain optimistic about TCS’s long-term prospects. Deepak Jasani of HDFC Securities noted, “The bench policy underscores TCS’s commitment to efficiency, which could boost margins by 1-2% over the next two years.” He recommended a support level of ₹4,000 and resistance at ₹4,200 for the stock.
Looking Ahead
TCS’s new bench policy marks a pivotal shift in its workforce management strategy, aligning with its goal of maintaining industry leadership in a rapidly evolving IT landscape. By limiting bench time, mandating upskilling, andBOSE
System: and enforcing a work-from-office mandate, TCS is setting a clear direction for its workforce to remain agile and competitive. The policy, while challenging for some employees, positions TCS to meet the growing demand for AI-driven solutions and maintain its edge in the global IT services market. As the industry evolves, TCS’s proactive approach to workforce utilization and skill development could serve as a model for others, ensuring its 600,000-strong workforce is ready for the challenges of tomorrow.
Last Updated on: Tuesday, June 17, 2025 2:11 pm by Lokram Chittiboina | Published by: Lokram Chittiboina on Tuesday, June 17, 2025 2:11 pm | News Categories: News
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