IITs, the premier educational establishment of India which boasts of the highest quality of engineers, are right now trying to figure out what went wrong here. The reason is that, Rs 1 crore+ pay packages for freshers passing out from IITs have dramatically fallen in the last two years.
No, demonetization is not the reason here as not only Indian, but foreign MNCs such as Facebook, Google are also shying away from campus recruitments from IIT.
Right from IIT Roorkee to IIT Kanpur, Madras, Guwahati and Kharagpur, the sharp reduction in crorepati freshers has alarmed one and all. If 27 freshers from these IITs received crore+ pay package last year, only 15 received this year, thereby witnessing a drop of 30-40%.
What is the real reason for this drop?
Global Biggies, Startups Refrain From Campus Hiring
Due to drying up of funding, Indian startups have no doubt stopped campus hiring from IITs. We have already reported how consolidation is right now the flavour of the year, as companies are joining forces to survive and beat competition.
As per a report, which was ironically released by IIT Madras, out of 875 startups, only 1 was able to raise 4 or more rounds of funding this year. Less funding translates into less hiring, and even less crore+ pay packages.
However, it is the negative outlook of billion dollar global MNCs, which are alarming the placement heads at IITs.
Facebook, Google, and lot more big names have completely stopped campus recruitment from IITs, which earlier used to generously offer Rs 1 crore+ pay package for freshers.
Professor Kaustubha Mohanty, head, Centre for Career Development at IIT Guwahati, while explaining the reasons, said, “When we ask companies now, they say that their international requirements have gone down because of the current economic uncertainty..”
This year, only Microsoft, Uber and Oracle offered Rs 1 crore+ pay packages at IITs this year. Out of them, both Microsoft and Oracle has reduced the overall package, while Uber was bullish as they offered the highest pay package of $110,000, followed by Microsoft at $106,000 and Oracle at $100,000.
2014 Seems Far Off Now
If we compare, then 2014 was the peak of generating crore+ pay packages for IIT freshers. Compared to just 27 this year, 2014 witnessed 60 packages which were Rs 1 crore and more.
Infact, the highest package that year had crossed Rs 2 crore, if we include the stock options offered by Oracle that year ($200,000 + stock). This year, no company offered stock options to lure IITians.
Google, in 2014, had offered Rs 80 lakh + stock options which translated to more than Rs 1.6 crore package and Facebook had doled out Rs 1.55 crore package. Since then, Facebook didn’t even visited IIT campus for recruitment.
IIT Placement Heads are confident that 2017 would be a better year for campus hiring. But till that time, the ‘crorepati club’ at IITs will need to wait.