Tata Consultancy Services (TCS) Ltd has taken decisive action in response to a bribery scandal surrounding job placements by appointing a new leader to oversee the hiring of temporary workers.
Recent reports of alleged misconduct led to the termination of multiple executives and the blacklisting of several staffing firms within the Tata Group company.
TCS Appoints Sivakumar Viswanathan as RMG
Sivakumar Viswanathan, a seasoned professional with almost three decades of experience, has been named as the new head of the Resource Management Group (RMG) at TCS. The RMG division is responsible for managing the recruitment of contract workers and deploying them to various projects within the company.
Following a whistleblower’s email sent to the CEO and chief operating officer, ES Chakravarthy, the former head of RMG, has been placed on leave. The email exposed unethical practices in the hiring of contract workers, alleging that senior executives had been accepting commissions from staffing firms for an extended period of time.
In its efforts to rectify the situation, TCS, India’s largest IT services company, has terminated 15 executives from the RMG division across the United States, Canada, and India. The objective is to eliminate individuals involved in the acceptance of commissions from staffing firms, thereby safeguarding the integrity of the recruitment process.
TCS To Conudct Comprehensive Audit of Staffing Vendors
Additionally, TCS is conducting a comprehensive audit of all its staffing vendors, ensuring a thorough review of their practices. The company has also requested its recruitment team, responsible for hiring temporary workers, to provide detailed information on all contract workers, emphasizing transparency and accountability.
According to an industry executive familiar with the matter, TCS has mandated that its procurement and RMG teams worldwide submit reports on every hire made over the past 2-3 years. These reports are expected to outline the division and vendor responsible for the hiring, as well as the associated pricing information.
On Friday, TCS publicly acknowledged that certain employees and vendors providing contractor services had violated the company’s code of conduct, highlighting the severity of the situation and the importance of upholding ethical standards.
In response to the scandal, TCS has demonstrated its commitment to addressing the issue promptly and thoroughly, taking concrete actions to ensure transparency, integrity, and adherence to its core values.
