Indian Institute of Management, Ahmedabad - an institute which is accepted as the country's top B-School, saw panic set in when on "Day Zero" of campus placements, only 10 companies came and gave 20 offers between them to the cream of the institute. Last year, around 30 companies had made over 90 offers with the highest salary of Rs 1.44 crore as compared Rs 25 lakhs this year. Moreover, the average pay is expected to fall by 25-30% this year.This is unquestionable evidence that even the IIMs are not immune to the aftermath of the global meltdown. The institute expects small companies to come during the following days but many of these companies in previous years have been denied a day zero or day one slot during the campus placements at the IIMs. You may call it tit for tat or anything else that you want, but the fact is that these same firms are now denying going to the IIMs for placements as many of them see this as the perfect opportunity to go to comparable B-Schools and hire MBAs with lower packages. In fact, 90% of the companies that came to MDI Gurgaon this year were start up firms.
The tables will be turned and I am sure of that. The companies have the commanding position right now due to the global scenario. But things are expected to get better by the end of 2010 and when that happens, one would not be shocked to see many of these management graduates demanding revisions to their pay, similar to what IT professionals did in 2003.
5 comments:
the highest package at IIM-C has been 50 lakhs this year...25 lakhs is really not bad at a time like this when sopme of the most experienced executives are being sacked and witnessing a revision in their packages.
The average reduction in salary for IIMs this year has been the worst in the history of IIMs.
I agree with rahul..In fact this year in IIM bangalore only 65 companies have promised to visit their campus for placements when 250 students are to be placed..So its a pretty bad scene everywhere
Hi Rahul,
I'm a student of PGPM 2008-10 at MDI, Gurgaon.
While I appreciate your write-up, I would like to point out that the 'fact' that 90% of companies visiting the campus are start-ups is quite untrue. Recruitments, as is common knowledge, have been impacted by the downturn.
But, please avoid creating panic by quoting unverified facts.
Best Regards
Kumar Pratyush
MDI Corporate Communications Cell
PGPM 2008-10
MDI, Gurgaon
Hi Pratyush,
I appreciate your concern but would like to point out that what I have written is based on the information provided to me by a student of your college (MDI- Gurgaon) from the current batch. If dissemination of such information is a concern then I suggest that the same should be passed on to your students to ensure that every one is on the same page.
Sincerely,
Rahul Gosain.
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