Read about: The Case of Tata Consultancy Services
A scandal involving bribery in job placements has recently embroiled Tata Consultancy Services (TCS), a major IT firm in India. According to reports, the global head of the Resource Management Group (RMG), ES Chakravarthy, was allegedly accepting commissions from staffing firms in exchange for offering jobs to their candidates. An internal whistleblower within the company reported this matter to the CEO and COO.
In response to the allegations, TCS took swift action and formed a committee to investigate the matter. A thorough probe into the claims was conducted by the committee, which included Ajit Menon, the chief information security officer, among its three members. After the investigation, the head of recruitment was put on leave, and four officials from the RMG, including Chakravarthy, were terminated. Furthermore, Arun GK, another official from the RMG division, was also terminated. It was reported that over the past three years, TCS hired around 300,000 people, including contractors, and the individuals involved in the scandal may have earned at least Rs 100 crore (approximately $15 million) through commissions.
TCS’s RMG division, responsible for placing around 1,400 engineers on projects daily, consists of approximately 3,000 employees. This scandal has come as a shock to TCS’s senior leadership, as the company is known for its strong governance practices. After the investigation, a statement was released by TCS, clarifying that an inquiry had been conducted and no fraud involving the company or any financial impact had been found.
They refuted the reference to a recruitment scam in the media report. The news of the scandal has raised concerns about corruption in the IT industry, where employee referral programs and staffing firms are common avenues for hiring. TCS’s swift response and actions to address the issue indicate their commitment to maintaining integrity and transparency in their operations.
A scandal involving bribery in job placements has recently embroiled Tata Consultancy Services (TCS), a major IT firm in India. According to reports, the global head of the Resource Management Group (RMG), ES Chakravarthy, was allegedly accepting commissions from staffing firms in exchange for offering jobs to their candidates. An internal whistleblower within the company reported this matter to the CEO and COO. In response to the allegations, TCS took swift action and formed a committee to investigate the matter.
A thorough probe into the claims was conducted by the committee, which included Ajit Menon, the chief information security officer, among its three members. After the investigation, the head of recruitment was put on leave, and four officials from the RMG, including Chakravarthy, were terminated. Furthermore, Arun GK, another official from the RMG division, was also terminated. It was reported that over the past three years, TCS hired around 300,000 people, including contractors, and the individuals involved in the scandal may have earned at least Rs 100 crore (approximately $15 million) through commissions. TCS’s RMG division, responsible for placing around 1,400 engineers on projects daily, consists of approximately 3,000 employees.
This scandal has come as a shock to TCS’s senior leadership, as the company is known for its strong governance practices. After the investigation, a statement was released by TCS, clarifying that an inquiry had been conducted and no fraud involving the company or any financial impact had been found.They refuted the reference to a recruitment scam in the media report. The news of the scandal has raised concerns about corruption in the IT industry, where employee referral programs and staffing firms are common avenues for hiring. TCS’s swift response and actions to address the issue indicate their commitment to maintaining integrity and transparency in their operations.
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Firstly all such third party agencies’s license should be cancelled with immediate effect associated with the respective establishment’s HR for committing bribery for job placement.
Secondly the respective establishment’s concerned HR should be taken into custody for interrogation and should be sacked off for life time ban from employment for committing unethical activities.
It’s a open secret HRS have a undertable deal with contract firms. Due to that, the right person is not able to get into the right position. Not only in recruitment, HR and admins are also taking commission when shifting employee house from one city to another, shifting computer peripherals from office to employee home (during wfh). Because new employee must use only those authorized logistics providers (truck plays here). Corporate people has a close tie-up with logistic companies and part of the sum is being distributed to the corporate people inside. One of my close friend told who is working with these logistic company. That’s why any corporate based logistics charged more than double the cost. Reason part is being looted by HRs/admins inside. This must be also investigated by all companies.
No reason why contractors prices are high in market leading to high cost with neutral skills.. Though I believe Tata has its own practise to follow and would not get into such malpractices.
Widely prevalent in the top IT companies, it’s no surprise. In a way, senior leadership is looting from the company itself by getting kickbacks from the recruiters and contractors. It’s an open secret.