In Indian IT industry “Bench” which was once considered to be the strength of India’s tech majors is losing its relevance to just-in-time contract hiring. HR experts say that the average IT company’s bench strength has progressively fallen from between 8% and 10% of the billable employees to between 4% and 5% now.
Let us understand first what bench is?
“Bench” in the IT industry refers to the section of employees that isn’t working on any project for the time being but remains on the rolls and receives a regular salary.
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For Indian IT industry, bench uses to be crucial for clients indicating firm has ready resources and can begin execution immediately. But having too many people on the bench means employees are underutilized, and this would impact the profitability of the firm.
For employees, it is an opportunity to learn new skills, prepare for projects or for competitive exams. But fatigue sets in soon enough.
Reason for Indian IT industry losing its bench
- More companies are hiring techies on relatively short, fixed-term contracts: Companies are no more employing techies for full-time even if the project is not there. The bench is largely an Indian phenomenon. After all, Indians tend to prefer secure full-time jobs over contract positions. In other places, people don’t hesitate to take up short-term projects, says Alka Dhingra AGM at TeamLease Services.
- Automation, creeping unionism, and a global closing of borders for techies: These happenings around the world in recent times have an accelerated bench thinning process.
Indian IT industry taking initiatives to reduce bench strength
- Zero Bench is an initiative Infosys launched in 2015 to help employees on bench find short-term assignments from same project employees who are overloaded.
- Dhingra also told that IT companies have a resource management team which links bench people and internal teams to different projects and mobilizes the bench people to different projects.
- IT companies are increasingly seeking “just-in-time” employees on contract, and industry experts see this as a trend that will replace the bench.
What they feel towards contract hiring
HR experts: believe better alternative as reduces costs, hires techies with better skills.
IT firms: Though contract workers are paid more but economical as compare to a large bench.
Employees: It will be a good experience with new skills to learn but high risk of layoff and recession.
Date: June 17, 2017
Image Credit: workammo.com