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The current global crisis is now beginning to bite those starry-eyed, ready-to-step-in-the corporate-world Indian youth. With India Inc witnessing lay-offs, salary cuts and downsizing of companies, many Indian B-school students are looking beyond the big M-factor and the usual recruiters.
Think B-school and what perhaps comes to your mind is a plethora of offers coming your way. Spoilt for choice and big moolah being served to you on a platter post your MBA? Not anymore! Yes, this is how it was for most top B-school students until recently. With hot sectors like I-banking going kaput, it’s a little wonder why pots of money are not being bestowed on even crème-de-la-crème MBA students. The recent global economic recession is biting into the campus placement scenario with sectors like BFSI freezing or going slow on recruitment.
Placements galore
“Last few years have seen placements happening at a frenetic pace in B-schools,” recalls V K Menon, senior director - careers, admissions and financial aid, Indian School of Business, Hyderabad. What actually led to this placement trend was the fact that many new companies across sectors started to hire from premier B-schools at astronomical figures.
“Since most were new entrants, they paid much higher salaries compared to the regular B-school recruiters, in order to get the best students,” notes Menon. This resulted in pulling up average salaries, sometimes irrationally and the focus of B-school placements became the top salaries which students got. “Companies were running behind students and throwing multiple offers,” says Ashish Wadekar, final year student, M.A. HR management and labour relations, TISS who’s also a member of the placement committee. “In a few cases, some offers were even changed at the last moment to suit students’ monetary expectation,” he adds.
A paradigm shift
In all this euphoria, the basics were sometimes forgotten. How was the fitment going to be? Is this the kind of role that I really like? Do I fit in well with the culture of this company and what would my long-term prospects be? These were some questions that most B-school students wouldn’t mull over much. “Roles, companies and long term growth started taking a back seat. But I see that trend changing thanks to this recession,” Menon points out. “The focus will shift to the kind of roles that are being offered, fitment with companies and medium to long term growth prospects,” adds Menon. Wadekar further adds in, “Students are realising that salary given last year won’t be offered this year and the salary expectations are more realistic.”
Industry experts like Menon and campus goers like Wadekar also feel that there will be a shift in recruiters coming on campus. A brand to reckon with, TISS usually gets placement offers from sectors like banking and consultancy. “Usually five to six consultancy firms come in but this time there were only three including E&Y, Hewitt,” Wadekar informs. Same was the case for banking companies. “Usually seven to eight banks come on our campus but this time few regular recruiters like Citi Group which made three offers last time, ICICI which usually makes two offers and ICICI Prudential backed out,” Wadekar points out.
To counter this, the TISS placement committee cleverly balanced the loss of offers by getting other sectors like manufacturing, engineering etc. “Thirty per cent of our summer internship offers have come from new recruiters like Tata Motors, L&T – engineering & construction department (Both being first timers on TISS campus),” informs Wadekar.
Changing trends
A similar change in trend is being anticipated by other B-schools too. ISB, Hyderabad being one such case. “For the class graduating in 2009, I expect placements to be quite robust with old, traditional sectors recruiting in greater numbers,” feels Menon.
Many are also speculating a significant change in the international placements. “Internationally, Singapore, Honk Kong, Mid East and Australia will be recruiting larger numbers than last year. While Europe and the US may remain at the same levels,” notes Menon.
Interestingly, there’s an air of optimism and most like Menon are sure that the recession is not really bringing things on campus to a standstill. In fact, it is just prompting students to look beyond the usual, be it in terms of sector they choose or the country.
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