TCS Bribery Scam: 16 Employees Found Guilty and 6 Staffing Firms Debarred

By Consultants Review Team Monday, 16 October 2023

Earlier this year, a recruitment misconduct case investigation was completed by Tata Consultancy Services (TCS), India's largest IT company. 

Following its investigation, the IT giant fired 16 employees and blacklisted six business associate firms, according to the exchange filing. Furthermore, the firm has barred six vendor businesses, as well as their owners and affiliates, from doing business with it.

"Our investigation found 19 employees to be involved and action has been taken against all as detailed here - 16 employees have been separated from the Company for code of conduct violations, and 3 employees have been removed from the Resource Management function," according to the filing.

The investigation closure report comes months after the corporation investigated practices in which staffing firms reportedly bribed top officials monitoring recruiting processes in the company in order to get business.

TCS said in a stock exchange statement in June that a whistleblower had alerted management to a recruiting scheme.

Later, during the company's annual general meeting, Tata Sons Chairman N Chandrasekaran stated that the business had already begun an investigation, dismissing six employees and hiring employment firms.

Chandrasekaran described how the problem arose. HR and talent acquisition are the two departments that are often involved in hiring at the organisation. However, in the event of a talent shortage or a requirement for a certain ability that is not available in a particular place, the organisation has a network of business associate firms or staffing agencies from whom it obtains contract personnel.

"At any point in time in the overall deployment of resources, about 2-3% of them are such BAs or contractors," he stated. The complaint was about certain employees of the corporation engaging with particular BA firms to recruit in their favour."

"TCS collaborates with a large number of BA firms." The corporation has a stringent process in place to recruit or qualify a firm to be called a BA firm. Because we require resources in 55 countries, there are around 1,000 such firms worldwide. And based on their talent availability, each of them handles a certain amount of business," Chandrasekaran added.

During a press conference following the release of the company's second-quarter results, Chief Executive Officer K Krithivasan stated that the company had concluded its investigation into the recruitment scam and had taken necessary measures.

"We have completed our investigation," Krithivasan stated. We have taken proper disciplinary action against anyone we believe has breached our code of conduct. steps vary depending on the type of infraction, however all steps have been performed and the case has been closed."


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