Leading IT companies including Tata Consultancy Services (TCS) Wipro Infosys HCL Tech and Accenture have been significantly reducing their bench sizes over the past 18 months. This move aims to address slowing revenue growth and margin pressures by improving resource utilisation and defending profitability. What Is ‘Bench Time’? In the IT sector ‘bench time’ refers to the period when employees are on payroll but not assigned to active client projects. These employees serve as a reserve workforce ready to be deployed when project demand surges. However with business expansion slowing companies have been reducing their bench sizes to optimise costs and resources. Shrinking Bench Time According to UnearthInsight’s report the average bench time has dropped from 45–60 days during FY20-21 to just 35–45 days currently. This trend is expected to continue through 2026  Higher Layoff Risks As IT firms shift their focus to emerging technologies like artificial intelligence (AI) machine learning and cloud computing employees with expertise in legacy systems are at greater risk of layoffs if they remain on the bench for extended periods. Data from Xpheno highlights the impact of this shift wherein bench sizes have shrunk by 15% over the past year. Over a two-year period bench size reductions are estimated to be nearly 22%. Utilisation rates across IT firms have reached the mid-to-high 80% range which is considered optimal. Changing Workforce Strategies The IT sector is increasingly transitioning to leaner workforce models moving away from large bench sizes. Employees are recruited only when project demand arises. Long-term staffing solutions without the need for full-time commitments. Bench size reduction is expected to continue through 2026 as IT companies are facing problems like revenue slowdowns and cost pressures. These measures will help them stay competitive and prepared for future growth opportunities.