Genpact and TCS Tighten Work Policies Amidst Global uncertainties and squeezing margins

Genpact’s recent 10-hour workday policy, tied to performance incentives but without a salary hike, has sparked employee unrest, particularly in Hyderabad. The move, which uses internal tools to track active hours, raises concerns about burnout and morale. This comes as Tata Consultancy Services (

) also introduced a rule requiring employees to be billed for at least 225 days annually—limiting bench time to just 35 days per year. Failure to meet this could impact compensation, career growth, and even employment status. These policies align with evolving labor regulations, such as recent amendments proposed in Karnataka, which relaxed working hour norms for IT and BPO sectors. While these changes offer more flexibility to employers, they also intensify pressure on employees to meet rigid productivity targets. As GCCs expand and aim to create over two million jobs by 2030, the focus on output over well-being risks talent attrition and long-term efficiency. With only 42.6% of graduates deemed job-ready, balancing productivity with employee satisfaction will be key to sustaining India’s IT competitiveness. The rat race to cut costs to boost margins might squeeze the most out of employees and this might lead to the classic case of "The Market for Lemons".