However, attributing the net headcount reduction solely to AI would be an oversimplification. At TCS, there was historically an average of around 14 per cent of employees on the bench, with many avoiding internal interviews by citing skill mismatches to remain unallocated. Additionally, several functions carried excess manpower—often at least 10 per cent above actual requirements. There was a reluctance to address this directly through stringent workforce optimization measures aligned with role needs. Thus, the reduction appears to be driven more by structural inefficiencies than by automation alone.
In recent times, many employees have expressed a trust deficit toward HR. In the pursuit of robotization and automation, HR has prioritized efficiency over effectiveness. While capability has improved, “cope-ability” has been neglected—resulting in systems that protect performance but not people.
This is not just about TCS. As the largest employer in India’s IT sector, it becomes the lens through which deeper, systemic issues are revealed. The Nashik incident is not a one-off—it is the visible tip of a much larger iceberg.
The controversy at TCS’s Nashik office—where multiple female employees alleged sexual harassment and religious coercion between 2022 and 2026, leading to FIRs and even the arrest of an AGM-HR—raises serious concerns. While leadership response has been swift, the situation exposes gaps in institutional safeguards and HR responsiveness. It highlights a stark contrast between operational success and ethical accountability—especially significant for a Tata Group company.
With regard to the Prevention of Sexual Harassment (PoSH) framework, significant gaps in implementation persist. Employers sometimes prioritize niche skill availability over effectively addressing complaints. As a business consideration, there can be an inclination to push such cases toward compromise rather than resolution. In TCS, the authority and effectiveness of the Internal Committee (IC) have varied across locations. At times, outcomes did not receive adequate attention from top leadership, particularly given the high volume of complaints. Regional issues were occasionally overlooked as long as business results were being delivered—undermining the spirit of the PoSH mandate.
This calls for deeper reflection:
- Where were the ombudsman mechanisms?
- Why did town halls fail to surface such issues?
- Has the PoSH framework become a paper tiger?
- Are employee engagement surveys truly reflective—or merely procedural?
- Why are young engineers opting out, citing toxic culture?
- How did prolonged silence persist despite complaints?
To be fair, six lakhs’ people there could be few black sheep’s – and some past HR leaders vouch for Zero Tolerance in TCS and proper investigation at the cost of business.
Beyond the incident, a broader vulnerability is emerging—particularly among middle- and upper-middle-class employees navigating rapid change, AI disruption, and workplace pressures. Silence in the face of harassment or coercion is deeply concerning. High-tech systems have advanced, but high-touch human engagement has regressed.
The increasing intake of younger talent—driven by cost and AI arbitrage—alongside exits due to redundancy or performance, may be business necessities. However, the way these transitions are handled defines organizational character. Western models of impersonal “pink slipping” do not align with India’s relationship-oriented work culture—more so within legacy-driven institutions like the Tata Group.
The Nashik episode underscores the urgent need for HR transformation:
- Rebuild trust through humane, accessible HR practices
- Strengthen grievance redressal and ombudsman systems
- Ensure uniform authority and accountability of PoSH Internal Committees
- Balance capability with emotional resilience and psychological safety
- Institutionalize second-career counselling and transition support
- Reimagine exit—and “exist”—strategies with empathy
- Optimize workforce planning with transparency and fairness
- Prepare employees proactively for AI-driven disruption
If educated employees have silently endured for years, it is not just an operational lapse—it is a cultural failure.
This is a moment for the entire IT sector to reflect. HR must evolve from being process custodians to people champions. Nashik cannot be dismissed as an aberration—it is a signal for systemic, people-centric transformation. There is a strong school of HR who feel the issue is getting magnified and Zero Tolerance is the Hall Mark of TCS and truth will come post the final investigation.
The author is a Founder of CEO Group of Companies, Bangalore. He has held leadership positions as Director (Business Services & HR) at Dupont, Vice President (HR) at ITC, and General Manager (HR) at Titan Industries.