TCS Cracks Down on Bribes-for-Jobs Scandal: 16 Employees Terminated, 6 Firms Blacklisted

16 Oct 2023 , 02:14 PM

Tata Consultancy Services (TCS) terminates 16 employees and blacklists six firms in the bribes-for-jobs scandal, according to an exchange filing on October 15. The investigation concluded after months of probing alleged bribery involving staffing firms influencing recruitment processes by bribing senior TCS executives.

TCS took action against 19 employees, with 16 terminated and three relocated to different roles. Six vendor entities, along with their owners and affiliates, are prohibited from engaging in business with TCS.

TCS emphasizes ongoing efforts to enhance governance measures, including personnel rotation, enhanced analytics, and vendor compliance processes. The company clarifies that the scandal did not involve fraud against TCS, with no financial impact, and no key managerial person implicated.

CEO K Krithivasan confirmed appropriate actions were taken and the investigation has been closed. TCS shares steps taken to prevent such incidents in the future, focusing on organizational, procedural, and technological improvements.

Tata Sons Chairman N Chandrasekaran acknowledged employees favoring specific firms, but couldn’t quantify the extent of favoritism. The scandal unfolded after a whistleblower complaint in June 2023, prompting TCS to investigate and take action against employees and staffing firms. Chandrasekaran explained TCS’s talent acquisition processes and the role of business associate firms (BAs) in filling resource gaps. The scandal involved individuals favoring certain BAs during recruitment.

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