As the current global economic crisis begins to engulf emerging nations including India, silence speaks louder than words at India’s topmost business school IIM Ahmedabad.
Though placement season usually brings the noises of a booming economy, but this year the global recession has brought down a sharp cut in salaries.
The job offers for IIM-A students have come down by about 42 per cent while overseas placements take a serious hit by declining over 60 per cent. It is a familiar situation not just at all IIMs but at other premier b-schools across India too.
“After Lehman Brothers became the most high-profile victim of the global credit crunch in September, we failed to understand the seriousness of the problem. The crisis has not only affected the markets of north America but far beyond which are normally the cream market for b-school graduates for their overseas placements,” said Dr Bakul Dholakia, vice chairman, Institute of Infrastructure Management.
This certainly means more students will now have to look for domestic jobs, thus, in turn giving Indian recruiters reasons to rejoice. And the biggest gainers are both private and nationalised banks. Also gaining for the first time, in a long while, are old economy companies.
“It was a talent drift, if not drain and today these top graduates are looking at opportunities in a diversified sectors which earlier was not there. The placement process was completely divided into 70 per cent to financial sector and rest 30 put together in all other sectors â€“ that is now being changed and for good,” said Dr Anil Gupta, senior faculty, IIM-A.
At the moment the jobs situation in the market is highlighted by the fact that a large chunk of graduates have decided to opt out from placement process this year to study further and wait for the recession to fade out. While others have decided to set up businesses themselves hoping to make the most of a desperate situation.
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