Key Indian IT firms, like TCS, Infosys, Wipro, HCLTech, and Accenture, have reduced bench sizes to safeguard profits and boost utilization rates during slower revenue growth. Having a bench means having idle employees ready for sudden client demands. Experts note that not only have bench sizes shrunk, but also the time employees spend on the bench has decreased significantly.
Market intelligence firm UnearthInsight reports a decrease in average bench time to 35-45 days, down from 45-60 days in FY20 and FY21 amid strong revenue growth. The trend is set to persist in FY26 as companies prioritize staff with expertise in AI, ML, and cloud computing.
Benched employees in IT companies dropped from 10-15% to 2-5%, per TeamLease Digital. Kamal Karanth of Xpheno credits hyper-hiring for this decline in utilization rates. Enterprises now opt for a blend of hiring practices for a balanced workforce and longer subcontracting arrangements.
Krishna Vij, business head-IT staffing at TeamLease Digital, mentions a rise in utilization rates from 70-75% to 80-85%, and a decrease in attrition from 28-30% to 11-13%. IT firms now face increased competition as Global Capability Centers recruit directly from the talent pool. To counter this, they’re shifting towards leaner and project-specific hiring strategies.
Despite IT companies maintaining ideal utilization rates in the mid to late 80% range, estimated bench sizes have decreased by 15% from last year, based on Xpheno data. Gaurav Vasu, UnearthInsight’s founder and CEO, mentions a current bench policy of 2-3 months for laterals. Top-tier firms like TCS prioritize faster project deployment from the bench.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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