TCS Bans Employees And Firms In Recruitment Scandal, Tata Sons Chairperson Confirms

In a bid to address a recent recruitment scandal, Tata Consultancy Services (TCS), India's largest IT firm, has taken decisive action by banning six employees and six business associate firms for violating ethical conduct, according to statements made by Tata Sons Chairperson N Chandrasekaran at the company's 28th Annual General Meeting.

The allegations, brought forward by whistleblowers, triggered a thorough investigation into the matter. Chandrasekaran expressed his disappointment over the violation of ethical conduct and emphasised the paramount importance of integrity among employees. He stressed that ethical conduct should always take precedence over financial performance.

The investigation revealed that two complaints were received between February and March, implicating TCS executives in a jobs-for-bribes scam. As a result, six employees and six associated firms have been banned from engaging in any further business activities with TCS.

Furthermore, Chandrasekaran highlighted that the company would undertake a comprehensive review of its supplier management process to prevent similar incidents from occurring in the future. The intention is to strengthen the system and ensure that incidents of this nature are avoided.

It is worth noting that TCS, which collaborates with over 1,000 third-party recruitment firms, confirmed that the division involved in the scandal, known as the Resource Management Group (RMG), only handles a small fraction, approximately 2-3 per cent, of the company's total hiring requirements. This clarification highlights that the scope of the scandal was limited to a specific area of the organisation.

To ensure a thorough investigation, TCS has engaged an external investigator to look into the allegations raised in the United States.