Salary packages to rise by 10% at IIMs this year

Placement committee member at one of other older IIMs stated that recruiters offering packages higher by 10-15% than last year

Buoyancy seems to be returning into final placements at the Indian Institutes of Management (IIMs). Though the placement process at most of these premier B-schools may have just begun, the campuses and recruiters alike anticipate a good 10-15 per cent rise in compensation packages.

According to sources within the IIM Ahmedabad, where placements began with completion first cluster on Sunday, packages are witnessing an increase of around 10-15 per cent as compared to last year.

"The average salary last year was around Rs 16-17 lakhs whereas this year it seems the number is witnessing a rise of 10 per cent," said an institute source on condition of anonymity.

Responses to an emailed query to the institute were awaited till the time of going to print. Similarly, a placement committee member at one of the other older IIMs stated that recruiters are offering packages higher by 10-15 per cent than last year.

"Recruiters are not only increasing the number of offers but also offering salary packages which are 10-15 per cent higher than what was offered last year," the member added.

Recruiters, however, believe that despite what was being expected to be a dull placement season, a 10-15 per cent rise in compensation packages is a reasonable rise this year.

"An increase of 10 per cent is quite reasonable this year. It also makes sense for us as recruiters considering the current economic scenario," said Yugesh Goutam, executive director - HR for KEC International and for infrastructure sector of the RPG group.

According to Goutam, this year, the group is offering an average compensation package of Rs 15.5-16 lakh for freshers at IIMs and other B-schools which is 5-10 per cent higher than last year.  "A few benchmark recruiters that we have spoken to have also confirmed a similar rate of increase in salary packages," Goutam added.

Sectors like consulting, investment banks, e-commerce and IT, among others have seen prominent participation so far in the placement season, especially at IIMs.

Among other recruiters, Capgemini India too alluded at a similar amount of increase in compensation package that it looks to offer students during the ongoing placements.

"While we are looking at a 10 per cent increase in the number of recruitments, we are also planning a similar double digit growth in compensation packages that will be offered," said a company spokesperson at Capgemini India.  Last year, Capgemini hired around 7000-8000 people from various campuses in the country.