In a latest update, the Indian IT giant, Tata Consultancy Services (TCS), is restructuring the rates it pays to the staffing firms for every engineer deployed, as per the reports.
TCS Revising Rates For Staffing Firms
Interestingly, this revision comes after a gap of six years.
The country’s largest information technology firm has told the staffing firms that the new pricing structure for deploying engineers with TCS will come into force in January, as per the report cited by the two officials familiar with the development.
“The vendor contracts get renewed every September/October and are valid for a year. However, TCS informed us that our existing contracts will apply until December 2023, and a new one will come into effect in January 2024,” said an executive at one of the staffing firms.
Here revising the company’s rates refers to the cost of candidate placement, which comprises salary, vendor costs, insurance, etc.
How Does This Help?
With the implementation of the new pricing structure, TCS aims to improve transparency and is likely to benefit both staffing firms and TCS.
According to an industry expert, a higher rate for staffing firms could result in companies attracting more qualified candidates.
“Over the last few years, skill sets like artificial intelligence (AI), full stack development, and candidates with knowledge of multiple programming languages became popular, and while other IT firms revised costs every couple of years, TCS has not done the same,” said One of the executives.
It is noteworthy here that the changes in rate cards are for contract staffing employees and not for permanent employees.
The changes hold a great significance as the employees working on such contracts form a significant part of the workforce for IT companies.
The news of this new pricing structure comes after the company’s employees were found to be involved in the “bribes-for-jobs” scam.
It appears that the IT major is putting efforts to make specific changes in its hiring process, and this may be a part of it.
After the scam came into light, the company instituted an enquiry in February and March to disclose how some of its executives were favoring some staffing firms over others and allegedly took money to offer jobs at TCS.
