TCS Finds Breach Of Code By Certain Employees, Vendors In Subcontractor Hiring

Tata Consultancy Services Ltd. called media reports of an alleged recruitment scam "incorrect" even as it found breach of code by certain employees and vendors in subcontractor hiring.

Although most of the organisation’s activities are performed by full-time employees, TCS uses contractors, especially for short-term assignments or those requiring skills not internally available.

With supply-side challenges easing, incremental cost of lateral hiring is trending lower. That gives TCS an opportunity to bring down subcontractor expense, Chief Financial Officer Samir Seksaria said in the company’s annual report for 2022-23.

At the end of fiscal 2023, TCS had 614,795 employees, with an attrition rate of 20.1% on trailing twelve-month period. The company added a net 22,600 employees in the previous fiscal.

On Friday, shares of Tata Consultancy Services fell 0.66% to Rs 3,217.45 apiece on the BSE even as the benchmark Sensex ended the day 0.41% lower at 62,979.37 points.