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TCS’s revised Policy raises concerns of Layoff among Employees | Current Affairs | Vision IAS
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TCS’s revised Policy raises concerns of Layoff among Employees

Posted 28 Jul 2025

2 min read

Tata Consultancy Services (TCS) has introduced a new policy limiting bench time to just 36 Business Days a year which raised concerns about employee deployment and job continuity.

  • Over past year, some other IT services companies including Wipro, Infosys, Accenture, etc., have reduced bench sizes to defend margins and improve utilization rates.

Why IT firms are reassessing their Benching Policy?

  • Cost management: Non-billable employees strain company finances during low demand.
  • Demand-Supply gap: Tech automations and project cancellations reduce need for buffer staff.
  • Utilisation Rates: Firms aim to improve project to employee ratios for profitability.

Ethical and Societal Concerns

  • Corporate Social Responsibility (CSR): IT firms have a social responsibility to ensure fair and humane workforce management practices, especially given the substantial investment in employee development.
  • Worker rights: Striking a balance between business efficiency and employee well-being is crucial. Policies should not inadvertently foster a "hire and fire" culture.
  • Psychological impact: Anxiety, stress, and other mental health issues among the workforce.

Conclusion

The transformation of policies in the IT sector reflects a dynamic industry adapting to new economic realities and technological advancements. For the sustainable growth of India's IT sector, a collaborative and empathetic approach is essential, ensuring that policies balance business imperatives with the crucial need for a skilled, engaged, and secure workforce.

  • Tags :
  • Corporate Social Responsibility
  • Corporate Layoffs
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