TCS will adjust payments to staffing firms for engineer placements

With effect from January, the pricing structure will cover all candidate costs, enhance transparency and attract top talent, benefiting both staffing firms and TCS


Tata Consultancy Services (TCS) is preparing to adjust its payments to staffing firms for the placement of engineers, marking the first modification in six years. This new pricing structure will come into effect in three months. Existing vendor contracts will remain valid until December 2023, with the updated contracts becoming effective in January 2024.  

The company’s pricing structure encompasses the entire cost of placing candidates. This includes salaries, vendor expenses and insurance. The primary objective of these alterations is to increase transparency, potentially benefiting both staffing firms and TCS by making the company more appealing to highly qualified candidates.

This change in rate cards is not applicable to permanent staff. These are specifically for contract workers. The adjustment in pricing policies coincides with recent changes in TCS’s hiring process. In February and March, the company initiated an investigation after discovering that some of its employees had allegedly shown favouritism toward certain staffing firms and accepted payments in exchange for job offers at TCS.

Consequently, TCS terminated the employment of its E S Chakravarthy, former head of the resource management group, and eight other individuals involved in the hiring process. Additionally, TCS blacklisted six staffing firms.  

The TCS ‘bribes-for-jobs’ scandal involved allegations of senior officials accepting bribes to influence hiring decisions, following a whistle-blower complaint in late April or early May, 2023. TCS subsequently admitted that some employees and vendors had violated the company’s Code of Conduct.

The company clarified that the resource management group (RMG) was not responsible for recruitment but for resource allocation and filling staffing gaps through contractors, pertaining to the complaint about contract worker hiring. 

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