Accenture's Workforce Management: Is the Bench Being Discharged?

The service-based IT industry, particularly companies like Accenture, has faced enormous challenges in recent years, especially due to the ongoing global pandemic. One of the pressing issues companies have had to address is the management of their workforce, especially those who are on the bench. This article will explore whether Accenture is discharging people from the bench, the reasons behind such decisions, and the impact on employees and the company.

Recent Reports and Workforce Management Practices

As of August 2023, Accenture has been actively managing its workforce. This includes adjusting staffing levels based on demand and project needs, which often leads to layoffs when projects decrease. According to recent reports, about 5,000 employees, including bench personnel, were laid off globally. In India alone, more than 20,000 employees were affected, reflecting the significant scale of these changes.

The layoffs were carried out in two waves: one in August and another in October. Three of the author's colleagues were also among those laid off. Notably, these layoffs did not affect only bench staff; well-performing project contributors and new joiners with average-to-good reviews were also impacted. This decision was a result of the company's need to streamline operations and costs.

The Bench and Its Impact on Companies

In the service-based IT industry, the term 'bench' refers to employees who are not currently billed to any client or project. This state is a double-edged sword for companies. On one hand, it shows a company's ability to manage resources, which can be advantageous in winning new clients. On the other hand, bench personnel are not generating revenue, and thus, can become a burden for the company.

During times of economic downturn, such as the current pandemic, companies may resort to discharging bench personnel to cut costs. Despite the claim of performance-based layoffs, this approach often serves as a cost-saving measure when clients and revenues decrease. Companies like Accenture, TCS, and Infosys have all experienced loss of clients and flat wages, making workforce management a critical issue.

Current Practices and Employee Impact

As of March 2021, Accenture has instituted a new practice where personnel currently assigned to projects are given early assignments for new projects to avoid going onto the bench. This initiative aims to maintain employee engagement and deliver consistent performance. While only the management knows the exact criteria, it is essential for employees to contribute value to their projects, deliver on their roles, and secure positive reviews.

For employees currently on the bench, the situation remains challenging. Often, those on the bench might be overlooked for promotions or opportunities for expansion of projects. This can affect their careers and job satisfaction, making it crucial for them to understand the company's perspective and align their actions accordingly.

Conclusion

Accenture's workforce management practices, particularly the discharge of bench personnel, reflect the ongoing challenges faced by the service-based IT industry. While layoffs may serve as a means to streamline operations and reduce costs, they also impact the morale and careers of affected employees. As the industry continues to evolve, it is crucial for companies to balance these needs and ensure that their actions are transparent and fair.

The information provided here is based on recent reports and the experiences of individuals in the industry. For the most current information, including official company announcements and recent news articles, it is advisable to check official resources and industry updates.