Hyderabad-based Indian School of Business (ISB) is off to a flying start this season. Citi Group has offered an analyst investment banker’s position with so far the highest offer of Rs 40 lakh per annum, followed by a Rs 33-lakh offer by Parthenon Group, a consulting firm.
Given that lack of jobs due to the economic crisis last year forced ISB to extend placements indefinitely, and its Day One (ISB does not have Day Zero like the Indian Institutes of Management) of placements begins only tomorrow, students are already witnessing salaries comparable to the boom days of 2007. The highest offer at the time was Rs 43.91 lakh.
ISB has 579 students to place this year, as against 440 last year. “Consulting looks robust, along with investment banking, finance and health care,” said V K Menon, senior director, Career Advancement Services. Menon refused to comment on salary figures.
Pre-placement offers were to be made at ISB before January 1, and the pre-placement talks were on between November and December 2009.
“Going by the positive trend which we have seen at the pre-placement talks, we expect placements to be good. It depends on how the offers are made,” added Menon.
ISB placements augur well for the experienced hands (called laterals in B-school parlance). The IIMs, which have begun lateral placements, are optimistic that the final placement season would end well. They expect 20 per cent increase in salaries. “Companies will always lap up students with experience. Besides, we invited more number of companies on campus this year. So the offers are pouring in,” said a placements chairperson from one of the IIMs who did not wish to be quoted.
Last year, though, such was not the case.
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By April, only 250 out of the 440 students (around 57 per cent) in the class of 2009 could get jobs in the placements drive that began early January 2009.
As many as 326 companies visited ISB in 2009 and made 401 offers for 437 students, compared with 230 companies making 657 offers for 421 students in 2008. The subdued demand led the institute to introduced a “one-offer” policy for the class of 2009 to ensure that all students got an offer.
The average compensation packages for 2009 dropped to Rs 13-15 lakh per annum as compared with Rs 18-20 lakh in 2008. The average domestic salary stood at Rs 15.05 lakh (down from Rs 19 lakh the previous year) and the average international salary was $119,022 (down from $144,812 last year).
ISB charges fixed placements cost of Rs 3 lakh on Day One and Two, if a company makes more than two offers.
On Day Three and Four, the institute charges Rs 2 lakh for more than two offers. The cost reduces to Rs 1.5 lakh and Rs 80,000, respectively, for the similar offers made later on.
Overall, placements this year appears upbeat. While the Indian Institutes of Technology (IITs) have secured between 50 and 70 per cent placements, IIMs, which go into final placements (tentatively) season in March 2010 are on a high. IIT placements began in December 2009 and will go on till March-April 2010.