IT services firms see more staff without projects, margin may get hit

IT services companies such as Infosys NSE 0.55 %, Tata Consultancy Services NSE 1.26 %, Wipro NSE 0.51 % and HCL Tech and others see employees on bench rising, as clients delay or cancel projects due to the Covid-19 pandemic.

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.