BUSINESS
In a bid to address slowing revenue growth and margin pressures, leading IT giant such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL Tech and Accenture have been reducing their bench sizes over the past 18 months.
In a bid to address slowing revenue growth and margin pressures, leading IT giant such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL Tech and Accenture have been reducing their bench sizes over the past 18 months.
The term 'bench size' refers to the strength of full-time employees who are not working on any active projects. These employees serve as a reserve workforce, ready to be deployed when the product demand increases.
Reducing bench time
As per UnearthInsight's report, the average bench time has dropped from 45-60 days during FY20-21 to just 35-45 days currently. Furthermore, this trend is likely to continue till 2026.
Greater risks of layoffs
With the advacement in technologies, companies are now inclining towards Artificial Intelligence (AI), machine learning and cloud computing, leading to a higher layoff risk. According to a data from Xpheno, bench sizes have decreased by 15 per cent over the past year.
In the upcoming two-year-period, bench sizes are likely to be shrunken by 22 per cent.
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