Indian IT Firms Continue To Reduce Bench Strength
India’s leading IT companies, including TCS, Infosys and HCLTech, are significantly reducing their bench strength as artificial intelligence transforms the software services industry. According to the report, the average bench strength across major IT firms has declined to around 8-10% of the workforce, compared to 15-18% before the pandemic.
The shift reflects a broader industry move towards leaner operations, with companies focusing on project-based hiring instead of maintaining large numbers of unallocated employees.
AI Driving A Fundamental Change In Hiring
The report says AI is enabling software companies to improve productivity, automate routine coding tasks, and deploy employees more efficiently. As a result, firms no longer need to maintain large benches to meet future demand.
Instead of hiring in anticipation of projects, companies are increasingly recruiting talent only when there is clear business demand. This demand-led hiring model is expected to become the industry’s new normal.
Freshers And Generic Roles Face Pressure
The shrinking bench is also changing recruitment strategies. Companies are becoming more selective in campus hiring while prioritising professionals with specialised skills in artificial intelligence, cloud computing, cybersecurity, data engineering, and digital transformation.
Industry experts believe that traditional entry-level roles requiring repetitive work are likely to decline, while employees with AI and advanced technology skills will remain in high demand.
Focus Shifts Towards Reskilling Existing Employees
Rather than expanding headcount aggressively, IT companies are investing heavily in upskilling their existing workforce. Employees are being trained in AI tools and next-generation technologies so they can be redeployed to emerging projects instead of remaining on the bench.
The strategy allows companies to improve utilisation rates, reduce costs, and respond more quickly to changing client requirements.
A New Era For India’s IT Industry
The report suggests that AI is fundamentally changing how India’s IT services companies manage talent. Lower bench strength, selective hiring, and continuous reskilling are expected to define workforce strategies in FY27 and beyond as the industry adapts to AI-driven delivery models and evolving customer expectations.
Summary
India’s leading IT companies, including TCS, Infosys and HCLTech, have reduced average bench strength to around 8-10% of their workforce, down from 15-18% before the pandemic. Driven by AI and changing client demand, companies are moving towards project-based hiring, selective recruitment, and continuous employee reskilling instead of maintaining large reserve workforces.
