End of the IT Bench? TCS, Infosys, Wipro are Cutting 75,000 Seats

A structural shift is underway in the Indian IT services sector as “the bench”—the traditional buffer of unassigned talent—contracts to its lowest levels in years. 

Industry data reveals that across giants like TCS, Infosys, Wipro, HCLTech, and Tech Mahindra, the collective bench strength has plummeted by approximately 75,000 people over the last 24 months, dropping from 300,000 to roughly 225,000.

IT Bench Policy: From Safety Net to Lean Machine

Historically, IT firms maintained a bench of 20% to 30% to respond rapidly to new project wins. Today, that figure has been slashed to between 8% and 15%. 

Experts suggest this is not a temporary dip but a fundamental reimagining of the “just-in-case” hiring model. 

Firms are now targeting ultra-lean utilization rates, with some aiming for a bench as small as 1% to 1.5% of their total workforce.

Stricter internal policies are driving this change. For instance, TCS has reportedly capped annual bench time at roughly 35 days, after which performance reviews are triggered. 

In many cases, companies ask employees unable to secure a project within a 60-to-90-day window to exit, reflecting a “use it or lose it” approach to talent management.

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The Skill Mismatch Factor

While slower global growth is a primary driver, a deepening “skill gap” is also to blame. 

Demand for traditional mid-level delivery roles has fallen by 20% to 30%, whereas requirements for GenAI, Cloud, and Cybersecurity experts have surged by 40%. 

The average time to place a benched engineer with a decade of experience has doubled, as clients now demand specific, high-end technical credentials that legacy workers may lack.

Impact on the Hiring Ecosystem

The shrinking bench is cooling the overall job market. Lateral hiring premiums for non-AI roles have dropped significantly, and entry-level recruitment has slowed by over 30%. 

As IT majors pivot toward “services as software,” the era of mass-hiring ahead of demand appears to be coming to an end, replaced by a hyper-focused, skills-first deployment strategy.

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