New Delhi, 28th June 2023: Tata Consultancy Services has sent an official letter to all of its board members informing them of suspicions of a recruitment scandal at the country’s largest software services provider.
The spokesperson in a conversation with ET said, “While the investigation is still ongoing and the final report is still awaited,” preliminary reading indicates that subcontractors constitute a very small percentage of TCS’s entire workforce and that the claims are “ridiculously inflated.”
The person said, “This is not an issue related to hiring of employees of TCS, but with the contractors of TCS, there are claims that the amount involved is Rs 100 crore, it is not even remotely close to it,” said the board member speaking off the record. “The company has written to all the directors and told them what is happening.”
Meanwhile, TCS is meeting with external auditors to analyse the situation, according to another source. At press time, the company had not responded to questions concerning the letter to the board of directors or the external auditors.
TCS was notified that senior executives were violating the company’s code of conduct by giving preferential treatment to some recruiters at the RMG (Resource Management Group) division.
The incident was uncovered as a result of a whistleblower report towards the end of April or the first week of May, and the inquiry is nearly finished, according to another source who is aware of the development.
Experts also believe that bribes for recruiting may have increased between 2021-22, when tech talent was in high demand and attrition rates were at an all-time high.
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