TCS Fires 16 Employees, Debars 6 Vendors in Recruitment Scam

India’s largest IT services company TCS on Sunday said it has fired 16 employees and barred six vendors in connection with a "recruitment scam”.

Vendors' Involvement

In late June, reports had surfaced of a "recruitment scam” at the largest software exporter, wherein vendors tasked with some functions were alleged to have indulged in malpractices in collusion with TCS staffers.

TCS' Response

The company said the investigations found that none of the company’s key managerial personnel were involved, and added that this is not a fraud against the company. It does not have any financial implications either, it added.

In the statement, TCS said it will continue to enhance governance measures, including regularly rotating personnel in the resource management function and enhancing analytics on supplier management.

It said the company expects all stakeholders and employees to adhere to the Tata code of conduct, and added that it has zero tolerance for unethical conduct.

Impact

The allegation came to light within weeks of K Krithivasan taking charge as the company’s chief executive and was the first major challenge faced by him.

TCS has taken strict action against employees and vendors involved in the recruitment scam. The company has also implemented measures to prevent such incidents in the future.