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.
