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Bindu D. Menon

New Delhi, Oct. 3 Business schools anticipate a reduction in recruitment this coming placement season.

Students, especially in the tier 2 and 3 B-school campuses, are likely to witness far fewer companies seeking them out, primarily as a fallout of the turmoil in the US markets that brings with it layoffs and a freeze in recruitments.

With supply of fresh MBAs far exceeding the demand, recruiters are likely to eye talent only in the top-rung institutes. HR personnel believe there will a 50 per cent decline in the number of companies visiting second-rung campuses.

As a way out B-schools are actively encouraging open training processes and promoting entrepreneurship among students. The sectors to be most affected are banking, financial and insurance sectors.

According to Prof L. Ganesh, Head, Department of Management, IIT Madras, “Students are anticipating a cut in salary at the entry level. Our belief is that the IT and financial sectors, which are the major recruiters, will take a knock.”

Talent Management International CMD, Mr T. Muralidharan said, “The impact on recruitment in the bigger campuses will be marginal. However, tier 2 and 3 campuses are likely to face a 50 per cent drop. Fair compensation packages as against the distorted figures prevalent last few years will be a visible.”

HR officials, however, feel that this time round infrastructure companies are expected to step up their presence in campuses, while foreign offers may remain elusive.

“Currently, the picture is not very rosy. However, our belief is that consulting companies will emerge as major recruiters. Domestic investment banking companies could also be forerunners,” said Dr Sushil Kumar, Chairman, Placements, IIM-Lucknow.

Prof J.K. Mitra, Dean, Faculty of Management Studies, observed that the impact of dulling in the financial sector can be seen only after the summer placements begin.

Says Ms Reena Ramachandran, Co- founder, J K Business School, domestic companies with a presence in China are being looked upon as potential employers.

Ms Aruna Bedi, Head Placements, IILM, said, “We are trying to encourage students to try out other sectors besides promoting entrepreneurship”

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