B-schools reel under recession

The recession is beginning to affect final placements at premier B-schools and IITs. Recruiters are maintaining last year’s salary levels. Students have also toned down their salary expectations during the final placement season this year. Most expect similar salaries as last year, instead of the 30 per cent annual increase that has been the norm.

At the Indian Institute of Technology-Kharagpur (IIT-KGP), the placement season began in December 2008 and will run till April 2009. Around 1,350 students will be placed during this period.

BK Mathur, chairperson, placements, IIT-KGP, said: “Starting salaries had been rising between 10 per cent and 30 per cent over the past three years. This year, several recruiters have maintained last year’s salary levels. Students have also toned down their expectations and are actually hoping for salaries to stay the same as last year, instead of a drop.”

“We have invited more companies this year and from diversified fields. Around 65 per cent of companies this year are identical to last year. The highest salary offered so far has been Rs 25 lakh. This was also the highest salary offered last year,” Mathur explained.

At the Indian Institute of Management-Calcutta (IIM-C) too, students have been receiving fewer offers and that too at 2008 salary levels.

Salil Patil, placements coordinator, IIM-C, said: “Students have understood the problems that placements may face this year due to the recession. We are inviting more companies this year, especially from recession-proof sectors like FMCG and telecom for placements.”