TCS Embroiled In Bribes-for-Jobs Scandal: Four Officials Fired, Three Staffing Firms Blacklisted
Tata Consultancy Services ( TCS ), a major IT firm in India, faces a major setback as allegations of a bribes-for-jobs scandal have come to light. In a recent report by Mint , it was revealed that several senior personnel within the company had been accepting bribes from staffing firms in exchange for securing jobs for their candidates over a span of several years.
In response to these allegations, TCS has taken swift action by dismissing four officials from its resource management group ( RMG ) and implementing a ban on three staffing firms involved in the scandal.
The scandal was initially brought to light by a whistleblower who wrote to the CEO and COO of TCS, exposing the involvement of ES Chakravarthy, the global head of RMG, in accepting commissions from the implicated staffing firms.
TCS promptly formed a committee comprising three members, including chief information security officer Ajit Menon , to investigate the allegations. Following the conclusion of the probe, TCS placed its head of recruitment on leave and terminated the employment of four officials from the RMG division. Chakravarthy has been barred from entering the office, and another official, Arun GK , from the RBM division, has also been dismissed.
An executive cited in the report revealed that over the past three years, TCS has hired a staggering 300,000 individuals, including contractors. It is estimated that those involved in the scandal may have profited at least Rs 100 crore through illicit commissions.
"The entire senior leadership is shocked," expressed the official to Mint.
Employee referral programs and staffing firms are the primary avenues for hiring executives and contractors in the IT industry, including companies like TCS. Staffing firms provide candidate lists to the companies, who then conduct tests or interviews to finalize the hiring process.
TCS's RMG division, responsible for managing resources, consists of approximately 3,000 employees and facilitates the placement of around 1,400 engineers on projects every day, equating to an average of one placement per minute.
This incident marks the first reported scandal of this nature within TCS and coincides with K Krithivasan assuming the role of chief executive officer just a few days prior.
In response to these allegations, TCS has taken swift action by dismissing four officials from its resource management group ( RMG ) and implementing a ban on three staffing firms involved in the scandal.
The scandal was initially brought to light by a whistleblower who wrote to the CEO and COO of TCS, exposing the involvement of ES Chakravarthy, the global head of RMG, in accepting commissions from the implicated staffing firms.
TCS promptly formed a committee comprising three members, including chief information security officer Ajit Menon , to investigate the allegations. Following the conclusion of the probe, TCS placed its head of recruitment on leave and terminated the employment of four officials from the RMG division. Chakravarthy has been barred from entering the office, and another official, Arun GK , from the RBM division, has also been dismissed.
An executive cited in the report revealed that over the past three years, TCS has hired a staggering 300,000 individuals, including contractors. It is estimated that those involved in the scandal may have profited at least Rs 100 crore through illicit commissions.
"The entire senior leadership is shocked," expressed the official to Mint.
Employee referral programs and staffing firms are the primary avenues for hiring executives and contractors in the IT industry, including companies like TCS. Staffing firms provide candidate lists to the companies, who then conduct tests or interviews to finalize the hiring process.
TCS's RMG division, responsible for managing resources, consists of approximately 3,000 employees and facilitates the placement of around 1,400 engineers on projects every day, equating to an average of one placement per minute.
This incident marks the first reported scandal of this nature within TCS and coincides with K Krithivasan assuming the role of chief executive officer just a few days prior.
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