In recent months, a substantial number of cases have been reported where placement consultants have fooled gullible youngsters.
PUBLIC EYEThey dupe youngsters with jobs in firms set up by fly-by-night operators
Log on to the jobs/recruitment section of any of the classified
websites, and you're zapped with curious promises: “backdoor openings”
to large MNCs, core technology training-cum-job, “hi-tech job” for the
inexperienced, pay packets to match. And then there’s the usual catch —
the “commitment amount”, “training fee”, consultant fees or a
non-refundable “security deposit” — all stated upfront on the unofficial
rate card in this frenetic recruitment bazaar.
Download the PDF of 'Job frauds in tech sector on the rise' here
Indeed, the term “job market” is very apt, for the jobs are obviously
“fixed” by placement consultants, for a hefty price, of course: this
price varies from just under a lakh to up to Rs. 3 lakh. It works on a
simple principle: the lesser your marks or the less impressive your
resume, the more you shell out. Similar “fixing”, multiple sources told
The Hindu, happens for college placements in less-known institutes,
where the process is more covertly managed.
But even as industry freshers or job aspirants have come to terms with
the way this bazaar operates — after all, it is just an extension of the
college admission tout racket — an intricate web of greed, deceit and
fraud operates in the foreground, eager to cash in on the desperation of
young jobseekers in a market, which is stagnant at best and in many
cases even on a decline.
In recent months, a substantial number of cases have been reported where
placement consultants have fooled gullible youngsters (mostly freshers)
by landing them jobs that even pay salaries for a month or two. Often
in cahoots with these consultants, fly-by-night operators hire in
batches to build credibility, even offer rudimentary training in basic
computer skills and some certifications. To appear well-established
these companies rent out a modest office, put up a website and deck it
up to make the company appear like an old market player. In one case in
Bangalore, the company chose the name of an Italian company Electrosys,
pretending to be an old and established subsidiary of the firm. The
first batch is recruited through walk-ins, but successive batches are
all “paid jobs”. And then when their numbers reach critical mass –
typically between 100 and 200 employees – these companies vamoose with
all the “security deposits”.
Underreported
A simple web search throws up a farrago of such cases. Many of the
victims, when contacted, were reluctant to go public. A substantial
number had not registered a police complaint, an indication that such
cases are underreported. Some insisted that IT companies tend to “track
resumes”, and a complaint may end up tarnishing their record. These
fears are baseless, it turns out, as industry sources say, there is no
collated registry or tracking. However, they concede that there indeed
are “backdoor entries” into the biggest companies, largely orchestrated
by unscrupulous human resources (HR) personnel.
Arbitrariness
Besides job portals and placement consultants, large numbers of IT
recruitments are through referrals, paving the way for arbitrariness
and, consequently, fraud. Jagdeesh (name changed) lodged a police
complaint when in June last year his company in Jeevan Bima Nagar shut
shop overnight, leaving him and around 140 others in the lurch. Till
date, none have got their money back, and the case remains unresolved.
Today, he has a job, but is saddled with two large loans: one which he
took for his engineering course, and the other which his mother took (by
mortgaging her jewellery) to pay his way through to his first job.
“The warning signs are there,” explains Pradeep, “but in our desperation
we tend not to see them.” A placement executive strung him along with
an offer he couldn’t refuse, even staging a fake meeting and exchanging
emails from what appeared to be the ID of a large MNC. Having paid the
money, Pradeep was repeatedly stonewalled by being told that the joining
dates were extended owing to financial losses. Worse, Pradeep had been
put in touch with the consultant through a placement officer in his
college, a tier-III institute in Andhra Pradesh. In a similar racket
busted by the Bangalore police last year, the consultant even gave
candidates a whirlwind tour of Wipro’s premises.
A 2011 report by Ernst and Young report titled ' Ever increasing fraud
risks in the IT and ITeS sector' takes note of this trend. It points out
that an entire entire recruitment team at the Indian subsidiary of a
large IT company was sacked for allegedly accepting bribes from
prospective employees and recruitment consultants. Saket Bhartia,
president of the Bangalore chapter of the Association of Certified Fraud
examiners says that from an IT/ITeS perspective, recruitment would be
the top-most frauds reported today. This has to do with the rapid growth
this sector has seen.
These frauds he says are carried out in collusion between HR officials
in big companies, placement consultancies and training institutes. In
some cases he adds they have found that HR officials in big IT companies
have their family members running training and certification institutes
that promise placements into the same company. This kind of fixing also
happens in campuses, he adds.
A senior professor at a leading engineering college here said that
another factor contributing to this malaise is the fact that most
engineering colleges are not imparting adequate training to students,
leaving them "hugely unprepared" for the industry. Often, these students
have no option but to turn to training-cum-placements institutes in
order to make inroads into the industry. "It isn't just about soft
skills. Most students passing out lack in basic technical skills, so
they cannot make it," he says. The unregulated and rapid proliferation
of engineering colleges has meant that students are entering a market
that is extremely competitive. "And everyone wants an IT job; partly
because there are very little jobs in other trades. So they turn to
these agents for help," explains the professor. This makes the entire
ecosystem ripe for fraud.
Andhra initiative
A substantial number of these fraudsters have been traced to smaller
towns in Andhra Pradesh. Following a slew of cases in Andhra Pradesh,
the government there appointed a committee, along with industry
associations, to study and suggest ways to protect job aspirants.
Sources in the Bangalore police concede that IT-related recruitment
frauds have seen a “steady, not yet alarming” rise. The numbers they say
are underreported as most of them are reluctant to report the crime.
Yet, both the Karnataka government and the industry are sitting on their
hands.
Unaware of rights
Suresh Kodoor, a member of the IT and ITeS Employees Centre, a support
organisation for employees in the technology and tech services sector,
says that victims are unaware of their rights and scared to report when
defrauded. “This is encouraged by the absence of appropriate laws,
loopholes in existing rules, blanket exemption from labour laws, and a
lenient attitude by law enforcing authorities,” he says.
The IT industry in Bangalore, and elsewhere, is unorganised and largely
unregulated. Further, employees have no safety net as companies have
been exempt from crucial labour laws, such as the Industrial Employment
Standing Orders Act. This means that there is no proper inventory of
these companies, and they are not required to make any disclosures,
making it difficult to track these operators. In one of the fraud cases,
it appeared that the company was not even registered.
Officials in the State Labour Department say they hope that the move to
revoke the exemptions given to the IT sector will bring in more
accountability as any workplace employing over 50 will be required to
register with the department, and make their rules of service amply
clear. This will also increase awareness about employee-employer rights
and entitlements, they believe.
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