Tata Consultancy Services (TCS) has stirred controversy by issuing transfer notices to nearly 2,000 associate employees, mandating their relocation within a tight two-week timeframe.
Employees received notices requiring them to arrange their travel and accommodation for relocation, with the promise of reimbursement at a later stage,
as per documents reviewed by a source familiar with the matter.
Allegations surfaced that employees facing this compulsory transfer are encountering repercussions from the IT giant, including being barred from office systems if they resist relocation.
Nascent Information Technology Employees Senate (NITES) reported grievances from 180 associates, with over 1,500 expressing their reluctance to comply with the sudden transfer directive.
Harpreet Singh Saluja, a spokesperson for NITES, characterized this move as a clear downsizing strategy, stating,
“Employees who accepted the transfers now find themselves idle without new projects. TCS justifies these transfers citing project requirements, seemingly avoiding layoffs to circumvent retrenchment fees.”
Sources within TCS justified the transfers as routine for associates during their training period.
Notably, most affected associates possess merely one to two years of work experience, according to NITES.
TCS declined to provide comments in response to inquiries about the situation from the aforementioned source.
This development follows TCS discontinuing its work-from-home policy starting October, aligning with a broader trend in the Indian IT sector.
Freshers, in particular, seem to bear the brunt as campus recruitments slow down amidst challenging macroeconomic conditions.
Earlier reports highlighted the grim working conditions expected in IT firms due to the challenging macroeconomic landscape and the rise of AI.
IT companies are scaling back recruitment and mandating office work to potentially enhance the efficiency of existing resources as projects become scarce.
Recent complaints filed against TCS involved delays in onboarding recruits, prompting the Maharashtra Labour Ministry to summon TCS officials on November 2.
However, company representatives did not appear for the hearing.
Commenting on the prevailing hiring trends, Krishna Vij, Business Head of IT Staffing at Teamlease, emphasized,
“The economic slowdown and declining demand pose challenges for companies, leading to evolving deal structures, margin pressures, and uncertainty. This situation limits strategic talent acquisition options. Forecasts indicate a year-end headcount lower than initially projected, prompting consideration of alternative talent strategies and productivity-enhancing technologies.”
Vij continued, “Major IT services firms are likely to scale back hiring by 40% this fiscal year, foreseeing a cautious outlook and limited hiring activity until FY25.”