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IT services companies such as Infosys<\/a>, Tata Consultancy Services<\/a>, Wipro<\/a> and HCL Tech and others see employees on bench rising, as clients delay or cancel projects due to the Covid-19 pandemic<\/a>.
This is expected to impact their margins with lower utilization of talent.
Benching is an industry term for keeping employees on the rolls without active projects.
Nearly one year ago, the situation was different. The software services exporters had reported almost nil bench strength as they drove a strategy of handling more work with fewer employees to meet demand for digital technology-led services.
The virus outbreak has, however, impacted both existing as well as planned projects since contracts have either been delayed or cancelled in a few industry sectors.
The IT companies have said that they are training benched staff for redeployment on new projects, but analysts are wary of an increased bench count.
\"We will continue to deploy our trained talent to meet available and emerging opportunities,\" a Wipro spokesperson said in response to ET's queries.
At Wipro, \"a key area of focus in the current environment is to protect jobs\" and the company has been investing significantly in reskilling and upskilling employees to ensure that they remain relevant and are project ready, the spokesperson added.
Krish Shankar, Group Head of Human Resources at Infosys, told ET in a recent interview that there have been small project delays and cancellations where people go on bench until they are put on other projects. “Equally, there are some new businesses. If you look at the utilization data of the past quarters, utilization is lower,\" he said.
Infosys' utilization rate, excluding trainees, during the April-June quarter stood at 81.2%, compared with 83.5% in the previous quarter.
IT services providers are struggling to justify current price-points for mainstream services, said Phil Fersht, chief executive, HfS Research<\/a>, adding that the number of professionals on the bench is increasing across business segments and that “most discretionary projects are shelved or cancelled.”
\"Most IT services providers right now are left with on-site staff being underutilized, or not utilized at all. While there are pockets of demand in areas such as cybersecurity and rapid digitization, a lot of benched resources do not have the right skill sets to plug the gaps,\" he said.
Infosys said it had paid special allowances to some employees onsite after their visas had expired and they were not allowed to work.
\"We have seen a slowing on the consulting side, but this depends on the type of work,\" said Ray Wang, chief analyst at Constellation Research.
“As the election (in the US) comes close, the industry expects a short slowdown, but the situation will improve,” he added.
With aggressive competition and greater agility from automation, many IT services providers have little choice but to \"make some workforce reductions to soften the impact of this pandemic economy,\" Fersht said.
\"We are only witnessing the first wave of workforce reductions - expect these to continue towards the end of the year, especially after the US election,\" he added
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等IT服务公司印孚瑟斯,塔塔咨询服务公司,Wipro和HCL科技和其他人看到员工在板凳上上升,由于客户由于Covid-19延迟或取消项目流感大流行。
这将影响他们的利润较低的利用人才。
钳工加工是保持员工的行业术语卷没有活跃的项目。
近一年前,情况是不同的。软件服务出口商报告几乎零板凳力量,他们开车的策略处理更多的工作和更少的员工为数字技术服务满足需求。
病毒爆发,然而,影响现有和规划项目合同以来被推迟或取消了在几个行业。
IT公司说他们是重新部署新就职员工的培训项目,但分析师担心增加板凳计数。
“我们将继续部署我们训练有素的人才来满足现有和新兴的机会,”惠普发言人表示,为了应对等的查询。
Wipro,”的一个关键领域集中在当前环境下是保护工作”,公司已经投资大幅reskilling和upskilling员工,确保他们保持相关的项目准备好了,该发言人补充说。
Krish Shankar集团人力资源主管印孚瑟斯,告诉ET在最近的一次采访中,有小项目延误和取消人们继续板凳直到他们其他项目。“同样,有些新业务。如果你看看过去的使用数据,利用率较低,”他说。
印孚瑟斯的利用率,不包括实习生,在4 - 6月季度为81.2%,与前一季度的83.5%。
IT服务提供商正在努力证明当前主流服务面市,Phil Fersht表示,首席执行官HfS中研究在板凳上,专业人员的数量正在增加跨业务领域,“最可自由支配的项目搁置或取消。”
“现在大多数IT服务提供商只剩下现场工作人员不够,或者根本不使用。虽然有口袋的需求在网络安全、快速数字化等领域,大量的陡坎的资源没有合适的技能来填补空白,”他说。
印孚瑟斯表示,它已经支付特殊津贴部分员工现场签证过期后,他们不允许工作。
“我们看到放缓在咨询方面,但这取决于类型的工作,”Ray Wang表示首席分析师星座研究。
“选举(在美国)接近,业内预计短期放缓,但形势会好转,”他补充道。
从自动化与咄咄逼人的竞争和更大的灵活性,许多IT服务提供商别无选择,只能“做一些劳动力减少软化经济这一大流行性流感的影响,“Fersht说。
“我们只是见证第一波的劳动力减少,预计这些继续对今年年底,特别是在美国大选之后,”他补充说
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