The IT Bench is Shrinking—What It Means for Your Career
This week's newsletter focuses on a crucial shift in the IT industry—the rapid reduction in bench time for employees. If you’re in IT, you may already be feeling the impact of this trend. Imagine this: You get hired at a leading IT company, but you don't have a project assigned to you yet. A few years ago, you could wait for months before being deployed. Today, you have just 35-45 days to find a project—or risk being out of the system.
The Changing Workforce Strategy in IT
Top Indian IT firms such as TCS, 印孚瑟斯 , 维布络 , HCLTech , and 埃森哲 have significantly reduced bench sizes and durations. The bench, which refers to employees on payroll without an active project, has traditionally acted as a buffer to meet sudden client demands. However, in today’s uncertain economic environment, IT companies are prioritising higher utilisation rates over maintaining a large bench.
So, what’s driving this change? Let’s explore.
Why Bench Time is Shrinking
1. Focus on Niche Skills
Employees with legacy skills and 9-14 years of experience are at a higher risk of layoffs. Demand has shifted towards emerging technologies such as artificial intelligence, machine learning, and cloud computing. Companies now prefer deploying professionals with these high-demand skills over maintaining a large bench of employees with outdated expertise.
2. Higher Utilisation, Lower Attrition
IT firms have increased their utilisation rates from 70-75% to 80-85%, meaning fewer employees remain on the bench. Additionally, attrition has dropped from 28-30% to 11-13%, reducing the need for backup resources. This means IT firms now operate with leaner teams, making job security more skill-dependent than ever.
3. Lean and Project-Specific Hiring
Global Capability Centres (GCCs) are directly hiring skilled professionals, increasing competition for IT service providers. As a result, IT firms are shifting towards just-in-time hiring models, where employees are recruited only when there is a confirmed project, minimising bench costs.
The Evolving IT Workforce Model
AI-driven productivity enhancements are also pushing IT companies to rethink traditional staffing strategies. Projects are becoming shorter, and businesses demand faster deployment of resources. While Tier-I companies like 塔塔咨询服务公司 still maintain a small bench for rapid response to client needs, the overall trend is towards minimal bench time.
Additionally, location is playing a crucial role. Many IT firms are shifting non-critical roles to Tier-II cities, where maintaining a bench is costlier and less feasible. Some companies are even outsourcing bench management to staffing firms, reducing the financial risks associated with non-deployed employees.
What IT Professionals Can Do
The IT industry is transforming rapidly, and professionals must adapt to stay ahead. Here’s what you can do:
The sector is heading towards a future where flexibility and niche skills will determine job security. The real question is—are technology professionals ready for this change?
Let’s discuss this in the comments! How is your company managing bench time? Are you feeling the pressure to upskill and stay relevant?