“While the full size of the scandal is yet to be uncovered, it is estimated to be around INR 100 crores.“
Most of the students and professionals feel disheartened for not getting selected for higher positions in the company, but without any wonder, it happened because of the bribe taken by the higher officials in return for such big posts allotment.
How was TCS Job Scam Discovered?
The scam that took place in TCS revolves around ES Chakravarthy who is the global head of the resource management group (RMG), TCS, who allegedly accepted bribes from staffing agencies over an extended period of time. Responsible for hiring and placing candidates within the organization, the RMG processes an astounding average of one candidate per minute. With around 3,000 employees, the division handles the placement of over a thousand engineers and new hires daily.
Upon receiving the allegations, TCS launched an internal investigation which included Ajit Menon, chief information security officer (CIO) among 2 other members. After weeks of thorough investigation, the head of recruitment was sent on leave, four senior officials of the RMG were terminated and three staffing firms were blacklisted.
The resource management group (RMG) division is responsible for the allocation of resources to different projects and in the case of shortfall filling the requirement through contractors. Contractors are in the role of hiring agencies and may or may not be hired by the company.
Response of N. Chandrasekaran On TCS
“The most important thing expected of every employee is ethical conduct and integrity, ahead of any financial performance. So, whenever there is a violation of ethical conduct by any employee, it pains me. All the leaders take it extremely seriously and we will always deal with such incidents with very strong action.”
Job Scandals in the IT Industries
These companies typically have well-established placement strategies and may even blacklist certain agencies or universities based on their past experience However, there can still be instances of fraud or manipulation within the system.
According to her, the first instance of fraud occurs during the initial scrutiny by the agencies responsible for shortlisting candidates. “If there is collusion or corruption within these agencies, it can lead to dishonest practices. This is the first area where the integrity of the hiring process can be compromised,” explains Mishra.
The second area prone to fraudulent activity is the selection of colleges and candidates. According to Mishra, this process involves individuals within the organization who may have vested interests or monetary incentives. Such individuals can easily manipulate the selection process to favor certain candidates or colleges.
Factors Affecting Mass Hiring
Several factors contribute to the susceptibility of mass hiring processes in the IT industry and other sectors that tend to go in for mass hiring:
- Competitive environment: Intense competition and the need to meet recruitment targets within strict deadlines can create an environment conducive to unethical practices.
- Insufficient monitoring: In large organizations, limited supervision and monitoring mechanisms can allow scams to go undetected for extended periods, making it easier for fraudsters to exploit loopholes.
- Reliance on external agencies: The involvement of external staffing agencies adds another layer of complexity. In the absence of proper regulation and monitoring, it opens up potential avenues for fraudsters to exploit loopholes.
- Lack of stringent background checks: Mass hiring often prioritizes speed, leading to compromised background-verification procedures. This can enable individuals with malicious intent to infiltrate the system.
The TCS scam serves as a stark reminder of the importance of maintaining ethical hiring practices and implementing robust mechanisms to prevent fraud. Companies must prioritize integrity, transparency, and thorough background checks to safeguard their recruitment procedures and protect their reputation. By doing so, they can foster an environment of trust and uphold the credibility of their hiring practices, ultimately contributing to a more reliable and ethical industry as a whole.