Median salaries for IIT-B students fall for first time in 6 years to Rs 9.4 lakh
The usually high-paying information technology (IT) sector, which is witnessing massive layoffs, is likely responsible for lower salaries, suggest experts.mumbai Updated: Sep 13, 2017 13:43 IST
For the first time in six years, the median salary offered at the Indian Institute of Technology, Bombay (IIT-B) job placements has dipped.
The annual placement report of the institute reveals the median salary offered by companies for campus recruitment fell by 4.3% during the last academic year. Static growth in the information technology (IT) and manufacturing sectors seems to be the primary reason why the annual salary package offered to the average student — which is usually on an upward trajectory — slumped this year.
The placement report put the annual gross median salary for 2016-17 at Rs9.38 lakh, down from Rs9.8 lakh in 2015-16. In other words, half the IITians who got jobs in campus placements last year received salary packages less than Rs9.38 lakh an annum.
In recent years, the premier institute had been witnessing a steady, if not a sizeable, swelling of packages. In the period between 2011-12 and 2015-16, the median salary offered by companies visiting IIT-B rose from Rs7.6 lakh to Rs9.8 lakh.
While the highest salaries are often in tens of lakh rupees (converted from dollars), a majority of students get much smaller packages. The average gross salary — which indicates the average size of a package — last year was Rs 11.41 lakh per annum, while the average cost to company (CTC) was Rs13.38 lakh.
The usually high-paying information technology (IT) sector, which is witnessing massive layoffs, is also likely to be responsible for lower salaries, suggest experts. The number of job offers made by IT companies dropped from 270 in 2015-16 to 184 last year.
“While IT companies that produce original products don’t reduce their offers, those made by the IT services industry have shrunk. Many of the high-paying companies haven’t made many campus visits. They are not making many offers either. The offers made by engineering firms, too, seem to be static,” said Kamal Karanth, a human resources executive.
Data revealed the students, in general, received smaller packages this year, with fewer companies offering higher salaries. For example, during 2015-16 placement season, 96 companies had offered more than Rs11 lakh per annum — the highest bracket — to 435 candidates who were placed. By comparison, a year later in 2016-17, 403 candidates received more than Rs11 lakh packages, even though the number of companies offering in the highest bracket rose to 111.
The premier institute also saw fewer students getting placed in the last season. Of the 1,718 students who registered for placements, only 1,114 (65%) were placed. By comparison, 1,143 out of 1,628 (70%) candidates found jobs in 2015-16. IIT-B clarified that not all of the registered candidates participate in the placement process. Some opt for higher studies instead.
Speaking on the condition of anonymity, a student coordinator from IIT-B’s placement team suggested the students preferred better career prospects than higher salaries. “Many students chose to go for research and technology or analytics because it provides them with better exit options and more opportunities for career advancement,” he said.
However, Karanth believes that IIT-B may have lost some of its bargaining capacity due to lower industry demand and abundant availability of non-IIT engineers. “The institute seems to have caught up between ensuring the placement of most of its students and getting a good deal for them,” he said.