India's premier business schools, the Indian Institutes of Management (IIMs), are grappling with a challenging placement season due to the global economic slowdown and over-hiring during the post-pandemic boom. As reported by Economic Times Final placements are either ongoing or nearing the start at several IIMs, including Ahmedabad, Bangalore, Calcutta, Lucknow, Indore, and Kozhikode. This year marks one of the most difficult placement seasons for top IIMs, according to officials and students across institutes who spoke to The Economic Times. Many requested anonymities.
"When there's a crunch, companies tend to bet on established institutions," said Debashis Chatterjee, director of IIM Kozhikode. "We're confident about placing everyone, but students may not get their ideal jobs." Ankur Sinha, chairperson of placements at IIM Ahmedabad, acknowledges the difficulties. "Leading MNCs are offering 10-15% fewer positions on average. This situation is undoubtedly different from recent years."
Consulting firms, traditionally major recruiters at IIMs, have reduced their offers. To mitigate the impact, institutes are expanding their reach, tapping alumni networks and inviting new recruiters like private equity, venture capital firms, and Indian conglomerates. "Building long-term relationships with diverse recruiters is key," said Sinha, highlighting IIM-A's efforts to diversify its portfolio. IIM-K's Chatterjee sees a potential silver lining: "This downturn may open doors for companies' students might have overlooked in a normal market."
Alumni confirm the difficult situation. A CEO from the retail sector, a graduate of a top IIM, said his institute contacted him for placements but he lacks campus hiring plans. Another startup CEO and alumnus echoed the sentiment, citing his focus on experienced hires. Students paint a bleak picture. A student at a top IIM that relied on alumni support during summer placements anticipates the same for finals. "Sentiment is down. We're doing everything we can, but things are tough."
Some IIMs might face extended placement seasons, exceeding the typical two weeks for top institutes. "This is unprecedented," remarked a student at another IIM.Leading IIMs anticipate declines in either offer counts, salary packages, or both. "Several companies are offering lower salaries compared to last year," reported a student from another IIM campus. The challenging placement season underscores the economic slowdown's impact on even India's elite business schools, forcing them to adapt and diversify their placement strategies.