Tech Job Scam: Tata Consultancy Services Terminates 16 Employees, Blacklists 6 Vendors

Tata Consultancy Services (TCS), a prominent global IT services and consulting company, announced on Sunday that it has taken decisive action in response to the recent bribes-for-jobs scandal that rocked the organization. After conducting a thorough investigation, the company terminated 16 employees and blacklisted six staffing firms allegedly involved in the malpractice.
TCS NetherlandsIn a statement released through an official exchange filing, TCS revealed that its investigation implicated 19 employees in the scandal. Out of these, 16 employees were separated from the company due to violations of the company’s code of conduct, and three employees were removed from their positions within the resource management function.

Additionally, TCS debarked six vendor entities along with their owners and affiliates, preventing them from conducting any business with the company. While the names of these vendors were not disclosed, TCS emphasized its commitment to reinforcing governance measures to prevent such occurrences in the future.

The measures TCS intends to implement include regular rotation of personnel in critical roles within the resource management function, enhanced analytics on supplier management, periodic declarations by vendors regarding compliance with the Tata Code of Conduct and know-your-supplier process, and vendor management process audits.

TCS CEO K. Krithivasan, during a post-earnings interaction with reporters last week, affirmed that the investigation had been completed, and appropriate actions had been taken against those found in violation of the company’s code of conduct. He stressed that the matter is now closed.

The scandal first came to light in June when reports surfaced indicating a widespread recruitment scam within TCS. Employees were allegedly accepting bribes from staffing companies in exchange for facilitating job placements. The magnitude of the scam was estimated to involve significant amounts, reaching as high as about Rs 100 crore.

Following the discovery, TCS promptly took action by terminating four officials from its resource management group (RMG) and banning three staffing firms. The Indian Staffing Federation (ISF) responded to the scandal, emphasizing its commitment to ethical employment practices and regulatory compliance in the staffing industry.

The TCS bribery scandal underscores the need for robust governance measures and ethical practices within the corporate world. TCS’s firm response and commitment to improving governance processes aim to restore trust and maintain the company’s integrity within the industry.

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