Rs 100 Cr TCS Job Scam Can Lead To HR Cleanup In Major IT Companies

Chennai
The reported over Rs 100 crore bribe for jobs scam uncovered in the Tata Consultancy Services Ltd (TCS) not only impacts its reputation, it would also have an Indian IT industry wide impact and some cleanup has to happen, said experts. The TCS bribe for jobs scandal would also create doubts not only in the minds of its clients but in the minds of other clients of Indian IT majors about the quality of the people working on various projects, said experts. The scam will also help in the cleaning up of the human resource recruitment system as the staffing companies blacklisted by TCS are major suppliers to many big Indian IT companies, they added. Simply put, some employees of TCS accepted bribes from staffing companies and hired personnel bribes for jobs. According to a news report, the scam has been going on for some time and the amount involved is as high as about Rs 100 crore. The scam amount involved is possible given the size of the company, said an industry official. For a $1 billion turnover IT company nearly 60 per cent will be the manpower cost that is $600 million. And 15 per cent of the personnel would be contract employees at a cost of about $90 million a year. Even a one per cent bribe on the above amount is a sizable one, Aditya Narayan Mishra, Managing Director and CEO, CIEL HR Services Pvt Ltd. The Bengaluru-based CIEL HR Services is one of the leading human resource services companies. Be that as it may, TCS in a regulatory filing said on receipt of the complaint it had launched a review to examine the allegations in the complaint.