Nagpur/New Delhi: The global economic slowdown projections have reverberated through the placement scenario at various Indian Institutes of Management (IIMs), particularly affecting newer establishments like Nagpur IIM. Reports indicate a significant impact on both final placements and summer internships, with recruiters delaying or freezing hiring activities until the early part of the following year, aligning with prevailing economic predictions.
Faculty members across several B-schools, including top-ranking institutions, acknowledge the challenging nature of this year’s placement landscape.
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However, the brunt of this downturn is felt most profoundly by the third-generation IIMs, established post-2015, such as Nagpur, Sambalpur, Sirmaur, Amritsar, Jammu, Bodh Gaya, and Visakhapatnam. A senior faculty member from one of these newer IIMs, speaking anonymously, pointed out that the tech sector, particularly IT and IT-enabled services, major recruiters annually, have currently frozen hiring, leading to a shortfall in the expected recruitment numbers.
Comparing this year to the previous one, a notable decline of 20%-30% in both final placements and summer internships has been observed among the newer IIMs. Additionally, there has been a slight dip in the pay packages offered. This stands in stark contrast to the previous year, where most students across batches had secured offers by this time.
The setback seems unusual even for some of the more established IIMs. For instance, during the recent final placement interviews at IIM-Bangalore, a few students faced difficulty securing summer internship offers. This occurrence is considered rare, as the institute traditionally boasts a near-perfect or 100% placement success rate, even during periods of global economic slowdown.
Summer internships are integral to the first-year students’ two-year MBA program and are pivotal for their progression to the second year. The absence of an internship offer could be concerning for over 80% of students, as pre-placement offers (PPOs) often translate into final offers.
While this situation poses concerns, optimism remains as more interview rounds are expected, providing additional opportunities for students. There is still a window for the remaining students to secure internship offers, mitigating the potential implications of this downturn on their academic journey.
As the economic landscape continues to evolve, the IIMs and their students navigate these challenges with resilience, leveraging opportunities and adapting strategies to ensure a favourable outcome amidst the prevailing uncertainties.
At most old and second-generation IIMs, the placement season officially starts around November and goes on till January-end while the third-generation IIMs begin early around mid-September, and go on till February-end.
Faculty members at Raipur, Sambalpur, Kashipur, and Sirmaur said that it’s not just the international companies, but even the domestic companies and start-ups in the IT sector that are not showing up.
“Most of the giant tech firms based in the US are not hiring at the moment or investing in long-term projects in India and may just end up in the last leg of the placement season. Those back here are also being cautious and not making as many offers,” said a senior faculty at IIM Sambalpur.
According to placement cell members across several new IIMs, this year definitely has started on a “slow” note, but several companies are delaying hiring and have promised to come down towards the end, as they are in a “wait and watch mode”. “This is a different year certainly, as even summer internships are badly affected.
Even though companies in other sectors such as manufacturing, design, finance, and insurance are coming over, those in the IT sector are delaying hiring till early next year to test the scenario, so all hopes are now on the last phase of the season,” said a student placement representative at one of the new IIMs.
