Amidst the conclusion of the 2024 academic year, Indian Institutes of Technology (IITs) are grappling with placement concerns, as hundreds of students remain unplaced even after the second hiring round. The elite institutions are proactively reaching out to startups, alumni, and recruiters from diverse segments. Additionally, they are reaching out to companies that have previously hired from their campuses. Departments and professors have also been requested to assist in the placement process. At IIT-Bombay, approximately 300-400 undergraduate and postgraduate students are still awaiting placement, with the final numbers subject to change. During phase 1 of the placement process, around 1,187 students were placed, with another 200 securing jobs in phase 2. The placement team is actively reaching out to alumni, and students are encouraged to indicate their interest in receiving assistance in securing a job. IIT-Bombay, IIT-Delhi, IIT-Kharagpur, IIT-Madras, and IIT-Kanpur, known as the older IITs, commence placements in December, while the newer IITs initiate the process earlier, around August-September. Notably, placements are conducted in two phases, with a gap of a few months between them. Following a period of aggressive hiring, many businesses have faced a downturn due to factors such as funding constraints for startups, reduced client work for consulting companies, global conflicts, and supply chain disruptions. Companies that expanded their workforce during the boom years of 2021 and 2022 have begun layoffs, resulting in a domino effect impacting both B-school and engineering campuses. Consequently, IITs are pursuing a wider range of companies and, in some instances, welcoming recruiters even if they offer lower salaries. Some companies that have hired in the past are now returning with revised profiles. IITs have a month and a week to place the remaining students before the new academic session begins in July. Most major IT services companies have opted out of campus hiring this year. A TeamLease Digital report from February 2024 indicates a decline in hiring intentions for freshers in the IT sector, with the percentage dropping from 49% in H1 2023 to 42% in H1 2024. Mint reported in January 2024 that India’s graduating tech talent and entry to mid-career employees are facing an uncertain job market as major tech recruiters scale back on hiring. The last time India’s top technology services companies refrained from campus hiring was during the global financial crisis of 2008. As students anticipated the industry downturn, more opted to pursue higher education instead of seeking placements. Typically, around 200 students pursue higher studies, but this year the number has risen to approximately 300. At IIT Kanpur, around 100-150 students remain unplaced out of a total cohort of 2000. There has been a slight decrease in salary packages, with the average package dropping from 26 lakhs last year to 25 lakhs this year. While high-frequency trading firms have offered some packages exceeding one crore, the number of such offers has been limited, and core sector firms have received considerable interest. The number of companies participating in campus placements has decreased, placing more students in competition for fewer positions. IIT Delhi has reached out to alumni for support, and students have approached professors and department heads to assist in their job search. The Office of Career Services (OCS), IIT Delhi, has requested other departments to notify the placement team if recruiters directly contact them regarding unplaced students. IIT-Madras has placed over 80% of BTech/dual degree students and more than 75% of master’s students this year, as of April 30. However, some students remain unplaced. The newer IITs, despite their smaller batch sizes, are also experiencing placement challenges. Around 75% of their students are expected to be placed in the coming months, with alumni-owned startups playing a significant role in hiring. The placement scenario remains uncertain, and there is pressure to maintain minimum compensation thresholds. However, if students are willing to accept lower packages, there are companies offering such roles.
Placement Concerns Haunt Indian Institutes of Technology Amid Hiring Downturn
