The Hindu Business Line : IIM placements after US crisis

What goes up must one day come down. Nowhere is this fact truer than with business school salaries. A booming economy coupled with a deluge of global investment banks scouting for Indian talent led to an exponential rise in salary packages across the board for business school graduates. The collapse of bulge bracket investment banks and the economic slowdown will result in average salaries cooling off for those passing out of the IIMs and other business schools. It will al so result in students gravitating more towards specialisations such as supply chain management, marketing and human resources which are more immune to economic downturns than specialisations such as IT and Finance.

However, MBA aspirants need not be perturbed as this seems to be the right time to join for an MBA programme. It would take a little more than a year for the economy to recover and when the seeds of the next economic boom germinate, these students would be at the centre of action, allowing them to capitalise on the opportunity.

P. H. Karthik, email

The shadow of the US crisis on IIM hiring will change. The demand for Indian MBAs continues to be strong and growing. Some alterations are required. While the wind blows, the sails are to be adjusted.

T.V. Jayaprakash, email

The fancy price paid by US companies for some IIM grads often left one baffled. Such crisis helps us to make real price discovery of the students graduating from our top B-schools.

V. Narayanan, email

After the bloodbath and the US Government rescue bids, gloom looms large over IIM placements. These episodes lead to a volcanic eruption of unemployment problems, which had already set in a year ago after the slowdown of the US economy. The fate of candidates inducted into such organisations is almost sealed and they need to look elsewhere for opportunities at a discounted pay packet. It may be difficult for them to come to terms and face reality as they were used to hefty emoluments. Even after hiring IIMs at fancy salaries, their brains could not arrest the downfall of the corporates.

Ashok Jayaram, email

The unfolding financial crisis and collapse of the big investment banks will not only cast their shadow on IIM hiring but will also moderate the pay scales and correct valuations of IIM graduates. Salary must be commensurate with experience, level of responsibility, role in corporate policymaking, results and productivity, and not based on IIM degree alone. The financial crisis may put hiring in the slow lane. But there is no need to despair. There are vast opportunities in other countries. India is also a fast growing economy.

Dr K. K. Ammannaya, email

The financial crisis in the US is gargantuan and the greedy nature of investments caused the colossal catastrophe. The frightful scenario of the US slowdown, inflation, recession and the financial crisis will definitely cast a shadow on hiring of IIM graduates. There will be less demand for IIM graduates in US companies and future hiring of IIM graduates is uncertain. Unbridled capitalism will collapse when there are no checks and balances.

V. Ramjee, email

The failure of the American financial giants means that India, like the rest of Asia, will be affected. Internationally, liquidity has become low, Indian stock market has been staging a continuous fall. Many of our industries, especially service sector and textiles, depend on US markets. In this backdrop, placements will continue in IIM campuses but price tags may not be as hefty. Even in the last session, there was decrease in the number of jobs offered by investment banks. Now, students may opt for consultancy, private equity and venture capital marketing. They may become a little cautious about jobs in the financial sector and may like to settle in sectors that are stable, like manufacturing.

T.S. Sundareswaran, email

The financial crisis in the US is a transient feature as could be judged from the massive monetary support of $700 billion offered by President Bush to avert a meltdown. Although there are indications of a recession, the situation may not become as bad as feared as the US Government cannot but involve itself in any cataclysmic financial crisis. Therefore the prospects of IIM graduates may be affected only in the current year or a year more. Moreover, indigenous demand is also quite good, though the pecuniary side may not be as high as in the case of a placement in US offers.

T. R. Anandan, email

http://sticklishissues.blogspot.com

More Stories on : Human Resources | Education | Sticklish Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Free reserves

GDR versus FDI

Interest paid to partners – recent developments

Papaya theory of customer centricity

Grasping the oil price, inflation linkage

IIM placements after US crisis

Should Indian investors think of buying US homes?

Positives in the new procedures for defence procurement