TCS Job Scam Slapped 100 Crore to India’s IT giant
The RMG division, which employs roughly 3,000 people, allows daily placements of approximately 1,400 engineers on diverse projects, with an average of one placement per minute. In recent years, TCS has added an average of 50,000 people each year, including contractors. The scope of the abnormalities has yet to be assessed, but given the magnitude of TCS's recruitment efforts, the impact might be enormous.
TCS Job Scam Slapped 100 Crore to India’s IT giant
Tata Consultancy Services (TCS), one of India’s largest IT corporations, has been shocked by a job bribery scam involving senior executives.
According to a Mint news, several members of the company’s resource management group (RMG) have long accepted payments from recruiting businesses in order to win positions for their applicants.
Following the receipt of a whistleblower report, TCS organized an internal committee of three members, including chief information security officer Ajit Menon, to examine the accusations. TCS fired its head of recruiting, fired four executives from its RMG business, and banned three staffing firms as a result of the probe.
The worldwide head of RMG, ES Chakravarthy, a named accused, has been prevented from attending the office. Arun GK, another RMG division official, has also been fired. It is believed that people implicated in the fraud have earned at least Rs 100 crore ($14 million) in commissions over the previous three years.
An unnamed TCS official expressed dismay at the situation, emphasising that this is the company’s first publicly known problem. The timing is particularly terrible, given it comes only days after K Krithivasan took over as CEO of TCS. This development comes on the heels of TCS’s fourth large agreement in the UK this year, with Nest’s pension programme.
TCS focuses heavily on employee referral programmes and collaborations with recruiting providers for executive recruitment. TCS receives applicant lists from these companies and then examines them through tests or interviews before making hiring selections depending on their needs.
More Employees, More Bribes
The RMG division, which employs roughly 3,000 people, allows daily placements of approximately 1,400 engineers on diverse projects, with an average of one placement per minute. In recent years, TCS has added an average of 50,000 people each year, including contractors. The scope of the abnormalities has yet to be assessed, but given the magnitude of TCS’s recruitment efforts, the impact might be enormous.
TCS has replied to the claims, claiming that the business has comprehensive mechanisms in place to investigate and resolve such concerns.
Many people were taken aback by the discovery of this recruiting scam at TCS, a firm with a $27.93 billion revenue and over 614,795 workers. It calls into question the availability of suitable protections and how such a situation could have occurred.
In the fiscal year 2022-23, Tata Consultancy Services (TCS) had a considerable increase in sexual harassment accusations. In FY23, 49 incidents of sexual harassment were registered. The corporation has also observed more female turnover than male attrition, most likely owing to the return-to-office policy, according to the IT behemoth’s Integrated Annual Report for 2022-23.
As of March 31, 2023, the company’s headcount was 6,14,795. TCS’s workforce base decreased by 2,197 employees in the preceding quarter, and TCS’s headcount was at 613,974 as of December 31, 2022.
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