Tata Consultancy Services (TCS), India’s largest IT services company, has come under sharp scrutiny as employees and labour unions allege that its internal skill assessment exams are being misused to pressure employees into resigning. What the company calls a “capability enhancement initiative”, workers describe as a covert layoff programme.
Employee bodies argue that even those with less than two years of experience, including fresh recruits, are being targeted—raising deeper concerns over job security and the evolving workplace culture in India’s IT sector.
Opaque Evaluation, High Stakes: What Employees Allege
Forum for IT Employees (FITE) and other collectives claim that the exam structure lacks accountability and transparency.
Key complaints include:
- No access to test papers or answer sheets
- No disclosure of exam scores or evaluation criteria
- 70–80% passing requirement, considered unusually high for an internal assessment
- No guidance on skill gaps or improvement plans
Employees say that when the stakes involve one’s livelihood, fairness isn’t a request—it’s a right.
In a particularly concerning episode, an employee on medical leave due to a parent’s surgery was reportedly pushed to resign and later denied gratuity. The individual won compensation after approaching the labour court—fueling worries that the issue is far from isolated.
A New Form of Layoffs? ‘Silent Retrenchment’ in Tech
- Unions claim that the resignation route helps companies avoid showing workforce reduction in records:
- No termination letters
- No official layoffs
- Resignation under pressure instead of voluntary exits
Their key demands:
- Share scorecards and exam-related documents with employees
- Publicly define assessment criteria and policies
- Legal checks on any forced resignation mechanisms
- Ensure labour law coverage for IT employees on par with other industries
- Labour authorities in multiple states have reportedly taken note and sought responses from the company in specific cases.
Automation Pressure and the Fear of Job Insecurity
Industry observers say this wave of anxiety has coincided with the sector’s shift toward AI, automation and cost optimisation.
TCS earlier admitted to trimming around 2% of its workforce, but unions argue the actual figure could be significantly higher—fueling suspicion around the assessment model.
Analysts warn:
“Cost efficiency cannot come at the cost of dignity. Skill development must enable employees—not replace them.”
If reskilling is the aim, workers ask—why are they not given a chance to reskill before being asked to exit?
Consequences already visible:
- Workplace distrust on the rise
- Decreasing employee morale
- Threat to long-term talent retention
Employees Say: We Are Assets, Not Consumables
Employee advocates now urge IT workers to:
- Maintain written records of all evaluations
- Immediately seek union or legal support if pressured
- Raise concerns openly—silence won’t protect jobs
This marks a notable cultural shift—tech workers asserting their rights in an industry long seen as exempt from labour activism.
TCS Maintains: It’s All About Skill Enhancement
The company defends its assessments as part of continuous learning and capability improvement strategies necessary in a fast-changing tech ecosystem. But critics argue: If it’s truly development-focused, why the secrecy?
The Larger Question: What Future for IT Employment?
Experts say the TCS controversy signals a turning point for India’s IT workplace norms:
“Talent is the foundation of the IT industry. If people feel disposable, the foundation itself becomes shaky.”
With digital transformation accelerating, ethical workforce transitions are critical.
The dispute over “exams-based exits” at TCS has ignited a broader debate:
Can India’s celebrated tech sector continue to thrive if employees constantly feel insecure?
Unless transparency, fair evaluation, and stronger labour safeguards are implemented, the very professionals powering India’s digital ambitions may begin to lose trust in the system.
