In a major move aimed at increasing productivity and employee accountability, Tata Consultancy Services (TCS), India’s largest IT services company, has announced a new policy mandating a minimum of 225 billing days per year for all employees. Additionally, bench time – the duration when an employee is not actively working on a project – has been capped at 35 days annually.
This significant development was first reported in internal communications and has now been confirmed by company sources. According to reports from The Times of India and NDTV Profit, the policy has already come into effect and is applicable across the workforce, indicating a shift towards tighter resource management in response to current market dynamics.
Understanding the New Policy
The 225 billing days requirement translates to approximately 75% of a typical 300 working-day year (excluding weekends and company-declared holidays). In IT parlance, “billing days” refer to the days an employee works on a client-billed project, which directly contributes to the company’s revenue. Employees who are not on billable projects are placed on the “bench,” during which they may undergo training or await project allocation.
Under the new rule, if an employee remains on the bench for more than 35 days, it could trigger HR review and possibly disciplinary measures. This is aimed at reducing idle time and improving overall efficiency across the organization.
Reason Behind the Move
The Indian IT sector is currently navigating a challenging landscape marked by slowing global demand, cautious client spending, and increasing cost pressures. TCS’s decision is seen as a proactive step to streamline operations and boost margins.
Industry experts believe this policy signals a more performance-driven and cost-conscious approach, especially as clients demand faster turnaround and measurable outcomes. It also aligns with the company’s broader push towards in-office work, as TCS has been gradually enforcing its return-to-office norms post-pandemic.
Mixed Reactions from Employees
While TCS has not officially commented on the employee response, several insiders indicate mixed reactions. Some employees appreciate the clarity and structure, while others feel the policy adds pressure, especially for those in roles with fluctuating project allocations.
An employee from TCS’s Bengaluru campus, speaking anonymously, shared: “While it’s understandable that the company wants to minimize idle time, sometimes bench time is unavoidable due to delays in client onboarding or project transitions. A blanket limit feels a bit harsh.”
On the other hand, some team leaders believe the move will motivate proactive engagement and faster project ramp-ups, helping employees stay more relevant and productive.
Industry Implications
With TCS setting the precedent, other IT majors like Infosys, Wipro, and HCL Tech may consider adopting similar policies. The move marks a shift from the traditional buffer time allowed on the bench, pushing the industry further toward a lean and agile operational model.
As India’s $245-billion IT industry adjusts to a post-pandemic hybrid work environment and evolving client demands, such policy shifts could become more common.
Conclusion
TCS’s new billing and bench time policy is a clear signal of changing expectations in the Indian IT sector. While it aims to drive better business outcomes, it will be crucial to balance performance pressure with employee well-being. How effectively TCS manages this transition will be watched closely by the entire industry.
