India’s largest IT services company, Tata Consultancy Services (TCS), has reportedly sent an official communication to its board members to address and clarify allegations of a recruitment scandal. The clarification was shared with the directors of the company, according to an off-the-record statement from one of them, as reported by the Economic Times. The move comes in response to a business daily report that claimed a hiring fraud within the company. TCS has informed its directors about the ongoing investigation and stated that the allegations made are greatly exaggerated.
The director stated that, based on an initial reading, subcontractors constitute only a small percentage of TCS’ overall workforce, and the claims made are unfounded and exaggerated. The issue at hand is not related to the hiring of TCS employees but rather concerns contractors associated with the company. The director further disputed the claim that the amount involved in the alleged fraud is Rs 100 crore, stating that the actual amount is significantly lower.
In a statement made to the BSE (Bombay Stock Exchange) on June 23, TCS clarified that the Resource Management Group (RMG) is not responsible for recruitment activities within the company, as alleged in the media article. The RMG’s role primarily involves allocating resources to different projects and, in case of any shortfall, hiring contract resources through contractors. The complaint referred to in the article pertains to the hiring of such contract resources. TCS initiated a review upon receiving the complaint and concluded that the situation does not involve any fraud committed by or against the company, has no financial impact, and relates to a breach of the company’s Code of Conduct by certain employees and vendors providing contractors. No key managerial personnel of the company have been found to be involved in the matter.
