/indianstartupnews/media/agency_attachments/s1FnhAYONODoxNkoC8xA.png)
/indianstartupnews/media/member_avatars/EQduc2WHT91lZWZ21jeO.jpg )
Follow Us/indianstartupnews/media/media_files/wu3ruYJScYt1Vz1mqdtT.png)
Recently, a job scam involving bribes worth Rs 100 crore was uncovered at Tata Consultancy Services (TCS), which is India's largest IT services company.
Some employees there were found guilty of accepting bribes from staffing companies. In return for these bribes, they offered jobs to candidates recommended by these firms. Surprisingly, this illegal activity had been going on for several years within TCS.
As soon as TCS discovered the scam, they took swift action. The company fired four officials from their Resource Management Group (RMG), which handles resource allocation and hiring contractors. Moreover, they banned three staffing companies involved in the bribery scheme.
The scandal came to light when a whistleblower wrote a letter to TCS's CEO and COO, exposing the head of RMG, ES Chakravarthy, for accepting bribes from staffing companies. TCS initiated an investigation, forming a committee that looked into the allegations. After the investigation, they placed their head of recruitment on leave and terminated the employment of four RMG officials.
This scandal not only affects TCS but also raises concerns about the overall quality of employees in the Indian IT industry. Clients of Indian IT companies may now question the competence of the individuals working on their projects.
However, there could be a positive outcome from this incident. TCS has blacklisted the staffing companies involved in the scam. This action may lead to other major IT companies in India cleaning up their recruitment systems as well, as these blacklisted firms are significant suppliers to them.
To put the scale of this scam into perspective, the estimated amount of bribes involved is around Rs 100 crore. Considering TCS's size and turnover of $1 billion, a substantial portion of its expenses goes toward manpower.
Approximately 60% of their turnover, equivalent to $600 million, is spent on human resources. Out of this, about 15% is allocated for contract employees, totaling approximately $90 million per year. Even a small percentage of this amount as bribes is significant.
TCS has denied the allegations of a recruitment scam, stating that it was a breach of their code of conduct by a few individuals rather than a fraud against the company. They emphasize that the issue does not have any financial impact on the company, and no key managerial personnel were found to be involved.
In summary, the TCS job scam is a serious matter that highlights unethical practices in the Indian IT industry. TCS has taken appropriate action against those responsible, and it is expected that other companies will also take measures to ensure transparency and integrity in their hiring processes.
Also Read: