New Delhi : The final placements at Indian Institutes of Management (IIM) and Indian Institutes of Technology (IIT) are likely to be tepid this year. Initial response from companies suggests that the number of job offers could see a fall of 10 percent while the average compensation will be similar to last year.Placement committee sources told Moneycontrol that there has been a lukewarm response from several companies. While the major recruiters have not backed out from campus placements, they have indicated that the job offers will be lower.IIT-IIM placements are crucial because they give an indication of the employment opportunities available for freshers in the country. Placements will begin from the October-end.While the pre-placement offers have seen a healthy growth among IITs and IIMs, there is fear of Information Technology (IT) firms hiring fewer engineering graduates. Similarly, investment banking jobs may also see a decline.”There is lot of caution among companies. If there is a significant dip in offers, we will encourage students to start their own ventures with the help of alumni,” said the placements coordinator at one of the established IIMs.
Typically, technology and IT firms make 60-70 percent of the total job offers at the IITs. At the IIMs, the major offers come in from consulting and banking firms. According to sources, in 2019, the companies have unofficially communicated that, while they will hire from the campuses, there will be a reduction in the number of job offers.
There are 23 IITs across the country. Of these, the IITs at Bhilai, Goa, Jammu, Tirupati, Palakkad and Dharwad are among the newest ones. ISM Dhanbad was also given the IIT status in 2016.
There are 20 IIMs across the country. Of these, the ones at Nagpur, Amritsar, Bodh Gaya, Sirmaur Jammu, Sambalpur and Visakhapatnam are the third generation or newest IIMs.
Sources told Moneycontrol that for newer IIMs and IITs, the placement situation could get tougher this season.
Banks, consultants and technology companies will dominate the placement process. However, e-commerce firms may go slower in doling out jobs.
If IITs and IIMs see a slowdown in job offers, the situation at other engineering and management institutes would be worse.
How was it last year?
Both IITs and IIMs had seen a strong set of numbers as far as jobs are concerned. IIMs saw a 20 percent increase in the number of job offers while there was a 15-20 percent increase in the average salaries.IITs also saw a 25 percent increase in both number of job offers as well as average compensation offered to students. While public sector entities earlier used to hire directly from campuses, now they hold competitive examinations for selection.
