TCS has been hit by a Rs 100 crore ‘Bribe For Job’ scam, where senior executives were found to have taken bribes from recruitment firms. A whistleblower helped uncover the scam.
A Rs 100 crore ‘Bribe For Job’ scam has rocked Indian IT giant, Tata Consultancy Services (TCS). Some of the company’s senior executives, who had been trusted to hire thousands of crucial personnel, had taken bribes from recruitment firms.
A whistleblower, who helped uncover the scam, told TCS’s CEO and COO that E.S. Chakravarthy, the head of the company’s resource management group (RMG), had been receiving money from recruiting agencies for years.
TCS swiftly assembled a team of three officials, including the company’s chief information security officer, Ajit Menon, to look into the accusations after receiving the report.
After weeks of investigation, TCS blacklisted three recruitment agencies, sacked four RMG personnel, and placed the recruitment head on leave. People involved in the scam may have made at least $100 crore in commissions.
Vice President Chakravarthy began working with TCS in 1997. Although his email ID is still operational, he reports to Natarajan Ganapathy Subramaniam, the chief operating officer, and has been prohibited from entering the office, the executive added, according to the story.
While complaints about code of conduct infractions do occasionally surface, a TCS representative said, “the company has robust processes for investigating and resolving them to closure.” RMG, which has 3,000 workers and places one engineer each minute, places around 1,400 engineers, including new hires, on projects daily.
TCS has 614,795 employees and $27.93 billion in sales last year.
IT services organizations like TCS acquire experienced executives mostly through employee referral programs and employment agencies. Staffing firms hire contractors and temporary workers. After K. Krithivasan took over TCS on June 1, this occurrence occurred for the first time.
TCS executive: “The entire senior leadership is shocked.” How did this happen? Were there adequate guardrails?
It’s alarming because we don’t know how prevalent or long this deceit has lasted. We’ve hired 300,000 people, including contractors, in three years. Even if 10% of hiring was done through designated staffing agency and the staffing business earned a fee on each applicant recruited, this fraud would be at least Rs. 100 crore.
The finding is unexpected since large organizations like TCS are expected to have strong measures in place to thwart misconduct that might impede operations and damage their reputation.
Conclusion:
Tata Consultancy Services (TCS) has been hit by a Rs 100 crore ‘Bribe For Job’ scam, where senior executives were found to have taken bribes from recruitment firms. A whistleblower informed TCS’s CEO and COO that E.S. Chakravarthy, head of the resource management group (RMG), had been taking money from hiring firms for years. TCS banned three staffing businesses, sacked four RMG personnel, and placed the recruitment head on leave. The extent of the irregularities is unknown, but some executives believe that those involved may have made at least $100 crore in commissions.
TCS, with 614,795 people and $27.93 billion in sales, relies on employee referral programs and staffing agencies to hire experienced executives. The scope of the scam is estimated to be at least Rs. 100 crore, even if 10% of the overall recruiting was conducted through chosen staffing agencies and the staffing firm received a commission on each applicant hired.
