Ways to Effectively communicate with your Employees
Blog | 08.02.2012

Rising IT Bench Strength – Time to Panic?

The recent survey done on Indian IT companies clearly states that in the coming quarters, there will be a drastic slowdown in projects and the $100 billion domestic industry is going to experience a downfall. While companies are busy adding employees to their pool, the question rises how the management can utilize the existing employees to match the expectations of the clients, and give them the maximum output.

  • The Current Scenario: After the recent recession, the latest employee utilization rates have shown a steep decline in recent time. This downfall is expected to worsen the scenarios in the coming quarters, the uncertainty in the market will not only lead to a cutback, but the revenue will also be influenced adversely. According to industry trends earlier the clients agreed to pay for the required number of employees and around 20% more as a buffer, but with the current slowdown no buffer is paid for, instead the clients expect more output from the same number of resources.
  • The Effects of the Current Situation: Due to lowered employee utilization rate, HR department faces the tight spot of pressurizing candidates to leave, who are on bench for longer periods of time. According to industry standards employee utilization rate below 75% is a real cause of concern.

What is the Solution?

Keeping all these into account the organisations need to chalk out a plan where they can utilize the people on bench in a way that it is assisting the designated employees working on a project so that the desired output is delivered, and there is no cut in the revenues.

We at Sapience offer an effective solution to the problems discussed above. Our product provides illustrative Time/Effort analytics which helps the Managers and Senior Management to assess the Capacity Utilization at the team level. The data generated shows the available capacity of the team and the effort delivered thus depicting the overall utilization of teams. Amongst all the teams, which have been highlighted as over-utilised the employees on bench can be utilized before the team gets trapped into work fatigue..

This helps the organisation to maintain healthy revenues and an apt employee utilisation rate. To learn more about Sapience, contact us at sales@sapienceanalytics.com.