According to reports, Tata Consultancy Services (TCS), a leading information technology (IT) company, has taken significant action in response to a recruitment scam that has shaken the tech industry. TCS has reportedly terminated the employment of six individuals and imposed a ban on six staffing firms involved in illicit activities.

N. Chandrasekaran, the Chairman of Tata Sons, addressed the matter during TCS's annual general meeting, stating that the company is currently investigating the involvement of three employees in the case. The investigation revolves around allegations of these employees’ receiving favors from staffing firms in exchange for securing appointments for contractual workers, as reported by PTI.

Chandrasekaran emphasized that TCS has taken decisive action against the individuals involved, stating, "We found six employees who did not follow the ethical conduct…we have banned all those six employees and also the six companies." However, he refrained from disclosing further details regarding the identities of the employees under investigation.

During the meeting, Chandrasekaran responded to questions from shareholders and revealed that TCS had received two separate complaints regarding the appointment of contractual workers—one in the United States and another in India—during late February and March. He noted that approximately two to three percent of TCS's overall resources comprise such business associates, with around 1,000 staffing firms enlisted with the company across 55 countries.

Chandrasekaran admitted that he could not quantify the nature of the favors received by the culpable employees. However, he acknowledged that the terminated employees had displayed behavior that demonstrated their preference for specific firms involved in the scam.

As per reports, Chandrasekaran announced that TCS will conduct a thorough review of its business associate supplier management process to identify any weaknesses. Additionally, the company aims to enhance its selection process to prevent similar incidents from occurring in the future.

Certain media outlets have alleged that TCS suspended several employees for violating the company's code of conduct. Some estimates have placed the value of the scam at ₹100 crore.

The actions taken by TCS underscore its commitment to upholding ethical standards and combatting fraudulent practices within its organization. By addressing the issue transparently and implementing stricter protocols, TCS aims to prevent such incidents and maintain the integrity of its operations.

Image source: The Economic Times