India's leading IT firm, Tata Consultancy Services (TCS), has been shaken by a bribery scandal, according to a report by Mint. The company has taken swift action by terminating four officials from its resource management group (RMG) and imposing a ban on three staffing firms involved in the illicit activities. The scandal came to light when a whistleblower within the organization alerted TCS's CEO and COO about alleged bribery practices. The report revealed that the global head of RMG, ES Chakravarthy, was accused of accepting commissions from staffing firms in exchange for securing jobs for their candidates within TCS.
In response, TCS formed a committee, which included chief information security officer Ajit Menon, to investigate the allegations. After conducting a thorough probe, TCS took decisive measures. The head of recruitment was placed on leave, and four officials from the RMG division, including Chakravarthy, were dismissed. Chakravarthy has also been barred from entering the office premises. Another official in the RMG division, Arun GK, was also terminated. These actions highlight the seriousness with which TCS is addressing the scandal. According to an executive quoted in the report, TCS hired approximately 300,000 individuals, including contractors, over the past three years. The individuals implicated in the scandal are estimated to have earned commissions totaling at least Rs 100 crore ($14 million USD). The revelation has shocked the senior leadership of the company, as reported by the official to Mint. In the IT industry, employee referral programs and staffing firms are the preferred avenues for hiring executives and contractors. Staffing firms provide candidate lists to companies like TCS, who then conduct assessments or interviews before finalizing the hiring process. TCS's RMG division, which comprises around 3,000 employees, places approximately 1,400 engineers on projects daily—a staggering rate of one placement per minute. This scandal marks the first of its kind for TCS, a company known for its reputable standing in the industry. The revelation comes shortly after K Krithivasan assumed the role of CEO at TCS, adding to the significance of the situation. TCS's swift response and stringent actions against those involved demonstrate its commitment to maintaining ethical standards and upholding its reputation. The company's leadership aims to ensure that such incidents do not tarnish the organization's standing in the long run. Transparency, integrity, and accountability remain crucial in addressing and rectifying the situation. Moving forward, TCS is likely to strengthen its internal controls and further scrutinize its recruitment processes to prevent similar incidents from occurring in the future. The company's focus on maintaining trust with its clients and employees will be paramount during this challenging period. As the investigation progresses, the industry and stakeholders will closely monitor TCS's actions to ascertain its commitment to addressing the issue effectively. Maintaining transparency and taking corrective measures will be vital to restore trust and reaffirm TCS's position as a leading player in the IT sector.