Tata Consultancy Services (TCS), India's premier IT services firm, has taken significant measures in the aftermath of a bribe-for-job scandal, resulting in the termination of 19 employees and the blacklisting of six staffing agencies. This case, which gained media attention on June 23, 2023, revealed malpractices in the IT recruitment sector. Allegations arose that three staffing agencies had bribed senior officials in TCS's Resource Management Group (RMG) to secure contracts. Notable internal figures involved included ES Chakravarthy, the global RMG head, and Arun GK, both facing the consequences.
TCS clarified that the RMG's role was not direct recruitment but rather allocating existing resources to projects and filling talent gaps through contractors. During the company's annual general meeting on June 29, TCS chairman N Chandrasekaran outlined the incident's timeline, revealing that six employees were implicated in unethical behaviours and stressing the necessity to revamp the hiring process.
The issue first came to light in early 2023, with whistleblowers notifying top management of alleged favouritism in recruitment. Following an internal investigation, TCS acknowledged breaches of their Code of Conduct but confirmed that no top managerial individual was complicit. Investigations were conducted both in India and the US.
Chandrasekaran also provided insights into TCS's association with staffing agencies. While TCS maintains an extensive network of over 1,000 staffing firms globally, only 2-3% of resources come from these agencies. These agencies undergo a stringent vetting process to collaborate with TCS.