Tata Consultancy Services (TCS) is preparing to adjust its payments to staffing firms for engineer placement, the first change in six years. The new pricing structure will be implemented in three months. Existing vendor contracts will be valid until December 2023, with new contracts going into effect in January 2024.
The pricing structure of the company includes the entire cost of placing candidates. This includes wages, vendor costs, and insurance. The main goal of these changes is to improve transparency, which could benefit both staffing firms and TCS by making the company more appealing to highly qualified candidates.
This change in rate cards does not apply to permanent employees. These are only for contract workers. The pricing policy change coincides with recent changes in TCS’s hiring process. After discovering that some of its employees had allegedly shown favouritism towards certain staffing firms and accepted payments in exchange for job offers at TCS, the company launched an investigation in February and March.
As a result, TCS fired E S Chakravarthy, former head of the resource management group, and eight other individuals involved in the hiring process. TCS also blacklisted six staffing firms.
Following a whistleblower complaint in late April or early May 2023, the TCS ‘bribes-for-jobs’ scandal involved allegations of senior officials accepting bribes to influence hiring decisions. TCS later admitted that some of its employees and vendors violated the company’s Code of Conduct.
In response to the complaint about contract worker hiring, the company clarified that the resource management group (RMG) was not responsible for recruitment but for resource allocation and filling staffing gaps through contractors.