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TCS shifts to new hiring model weeks after announcing 12,000 layoffs

TCS shifts to new hiring model weeks after announcing 12,000 layoffs

Tata Consultancy Services (TCS) has introduced a new layer in its contract hiring process by onboarding Pontoon Solutions, a US-based recruitment process outsourcing (RPO) firm and a subsidiary of global staffing major Adecco, as an intermediary to manage its staffing vendors.

The move, first reported by Mint, comes just days after the IT giant announced a reduction of over 12,000 jobs, raising fresh concerns among vendors about transparency, control, and long-term implications.

TCS, which typically engages thousands of contractual workers annually—ranging from tech freshers to mid-level specialists—has historically managed third-party staffing through its internal Resource Management Group (RMG). But under the new model, staffing vendors will no longer interact directly with RMG or TCS’s hiring managers.

Instead, job openings will now be posted via Pontoon’s proprietary platform. Vendors must upload profiles through this portal, after which Pontoon will conduct an initial screening. Only shortlisted profiles will be forwarded to TCS for final consideration.

Over the past two months, vendors have reportedly been interacting exclusively with Pontoon, according to staffing executives quoted by Mint. The direct line of communication with TCS—previously a common practice—has now been cut off entirely.

Contract staffing currently accounts for 8–10% of TCS’s overall workforce, with such roles typically lasting from six months to a year. These employees remain on vendor payrolls and are not considered permanent TCS employees.

The company continues to recruit full-time talent through campus placements, lateral hiring, and executive search firms. In the June 2025 quarter, TCS reported a net addition of 5,090 employees, bringing its total headcount to 613,069.

TCS’s overhaul in vendor management comes at a critical time. For the June quarter, the company reported a 0.59% decline in revenue, bringing in $7.42 billion. The dip was driven by weaker demand in the Indian market and muted global growth, compounded by geopolitical tensions and trade challenges, including those linked to U.S. policy decisions under President Donald Trump.

Among India’s top-tier IT firms—including Infosys, Wipro, HCLTech, and Tech Mahindra—TCS posted the weakest financial performance last quarter. The company’s recent announcement of 12,200 job cuts, accounting for roughly 2% of its workforce, has further intensified scrutiny of its cost management strategy.

Source – https://www.peoplematters.in/news/business/tcs-shifts-to-new-hiring-model-weeks-after-announcing-12000-layoffs-42349

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