Well, I as a supporter of the Randomness View will beg to differ. Everything is market dependent, and the markets work randomly. So ultimately, everything is random.
Here is some news about the latest happening in the institutes offering the cream-of-the-cream of the world – The prestigious Indian Institute of Managements. Now before I proceed further, I want to inform that I do NOT intend to comment on the quality of the students or the institutions, No doubt they are EXCELLENT. But what I intend to convey is how everything is dependent on market situation and how it all works randomly!
The news that has come from the recruitment figures at the different IIM’s does not appear to be good enough, especially if we look at it relative to the last years placement figures.
Rumors are that the Subprime Mortgage Crisis has hit the Indian Job sector as well, and what is going on in IIMs is just a reflection of the global cues.
Till last year, various investment banks of the Wall Street and other financial centers of the world used to run behind the IIM graduates. This year, the scene is a lot different. Interestingly, the number of candidates offered jobs by the various investment banks like Merrill Lynch and Lehman Brother have gone down significantly.
Last year in IIM Bangalore, global investment banks Merrill Lynch and Lehman Brothers were among the biggest recruiters, hiring 13 students each. This year, the number of hires is only in a lower single digit figure.
More interestingly, the same investment banks used to visit even Indian Institute of Technology (IITs) till last year and used to pick up the B. Tech. student, which the banks believed they could groom them into highly quantitative and equity research related roles. This year, no investment bank is scheduled to visit IITs.
Not only that, even the salaries offered at IIMs for the handful of jobs that are offered by investment bank, are expected to either remain the same as last year, or go down a bit. As compared to these international MNC banks, the salaries offered by Indian banks and Indian financial organizations have gone up by around 20% as compared to the last year.
Related: Merrill Lynch Job Cut: fires 650 & Morgan Stanley & Lehman Brothers job Cut
Other banks like Barclays and Deutche Bank, which visited the campus, have also hired much fewer numbers.
It is believed that the scenario was almost similar at IIM Ahmedabad, with the foreign banks hiring fewer students.
As per the news, a reason for the slowdown in hiring could also be that the banks already have complete teams in place following the recruitment binge in the past two years, and did not need as many students this year, an official with a global investment bank said. Till now, IIMs have maintained that there has been no marked slowdown in interest from global investment banks.
Sources said that overseas salaries offered by global investment banks have also not gone up significantly this year either. The salaries being offered were averaging at around $80,000-100,000 this year, which is approximately the same as last year.
Salaries being offered by Indian banks, however, have gone up almost 20% from around Rs 12-15 lakh last year to between Rs 15 lakh and Rs 20 lakh this year. Mape, for instance, offered Rs 20 lakh to the students they hired.
Related: IT business of India: How long the growth story will Continue
Its all happening in the job sectors. So many companies firing individuals, so many salary cuts and so many reasoning given by the so called “higher management” to justify the actions of salary cut and job cuts.
| Ultimately, all of the circus falling victim to RANDOMNESS and market conditions. One can only hope to expect some respite at the mercy of the random market conditions. | Table of Contents |
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