Tata Consultancy Services (TCS) will no longer blindly chase expansion into Tier-2 and Tier-3 cities, asserting that the IT services giant will not tolerate "sub-optimal" centers following the highly publicized and legally fraught Nashik incident. Speaking at TCS 31st Annual General Meeting (AGM) for the fiscal year 2025-26, Tata Sons and TCS Chairman N Chandrasekaran directly addressed shareholder concerns regarding workplace safety, center governance, and expansion risks.
Responding to an inquiry about future footprint strategies, Chandrasekaran said, "We definitely want to grow in all our key locations. But one thing that the recent lesson has taught us is that we cannot have sub-optimal centers. Having centers of 100 or 200 people is very difficult to justify the presence and unnecessarily reduces risk exposure. So we will take a very serious look at that."
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The "recent lesson" referenced by Chandrasekaran underscores a massive controversy that erupted at a local TCS BPO branch in Nashik, Maharashtra. The case unfolded into a major national flashpoint involving a Special Investigation Team (SIT) probe and the National Commission for Women (NCW). Nashik police filed a 1,500-page chargesheet against multiple individuals-including senior team leaders and supervisors-following allegations raised by young female employees aged 18 to 25.
A total of nine FIRs were registered, resulting in multiple arrests-including a human resources manager accused of actively discouraging victims from filing formal complaints. During the AGM, Chandrasekaran emphasized that the Tata Group remains strictly anchored to its Code of Conduct and a zero-tolerance policy against any form of coercive behavior or harassment.
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He informed shareholders that an independent, third-party investigation comprising a legal firm and an accounting consulting firm was established to review records, operational procedures, and systemic gaps. The independent committee is being overseen by TCS Independent Director Keki Mistry. Shares of TCS declined 11% in the last one month and are down 34% on a year-to-date basis.
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