Return of banking and financial sector companies for summer internships may improve final placements too at the campuses
The summer placement process, which gives first-year post-graduate students an opportunity to spend nearly two months during summer 2010 with companies that make them offers, has given the Indian Institutes of Managements (IIMs) much cause to cheer.
While all the IIMs maintain that happy days have returned, the placements scenario is still not up to the 2007 levels when growth was at its peak. However, unlike in 2008 — when companies left students out in the cold due to the Lehman Brothers collapse and the economic slowdown that followed (the IIMs had also extended the closing dates for placements last year) — it’s a different story this year.
While IIM Ahmedabad concluded its summer placement process in record four days this year, the relatively smaller IIM Kozhikode too wrapped up the process in eight days with the highest stipend offer at Rs 1 lakh. Other IIMs started the process later, and are expected to close the season within a week.
Following the crash of global banking and financial sectors, the IIMs, last year, focused on tech service firms to explore job opportunities. This year, the IIMs have all their regular information technology (IT) and IT consulting firms returning. Also, this year’s surprise is start-ups and IIMs have some non-government-organisations (NGOs) and sports-based companies showing interest.
IIM-Kozhikode (IIM-K) too has a lot of new sectors in micro-finance and NGOs. “These can add up to nearly 15 per cent of the placements,” said Rohan Jaikishen, placement committee member, IIM-K. IIM-Lucknow placements chairman, R L Raina, says: “The offers are expected to rise. This is a sign of economic growth.”
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Students of batch 2009-11 of IIM Ahmedabad (IIM-A) heaved a sigh of relief after over 150 of a total of 315 students were placed for the summers by the end of second day. Marketing was a hot favourite with some of the most sought after recruiters being Diageo (of Smirnoff, Johnnie Walker and Guinness fame), Nokia and Coca Cola. Finance remained the top pick with 44 per cent of IIM-A students opting for roles in finance, investment banking, private equity, corporate banking and treasury roles. Marketing roles grabbed an 18 per cent share with positions in sales and marketing management, branding, business development and marketing research. Consulting and general management were the next two preferred domains followed by IT, at 11, 18 and 9 per cent, respectively.
IIM Kozhikode (IIMK), on the other hand, wrapped up 100 per cent summer placements for its 2009-11 batch in eight days with 120 firms making offers to the 309-strong batch. Global biggies such as Arthur D Little, KPMG, Hewitt, JP Morgan Chase, Citigroup, HSBC, Standard Chartered Bank, Deutsche Bank, HUL, Pepsico and Colgate Palmolive participated in the placements. The highest stipend offered this year was over Rs 100,000 inclusive of perks and allowances. “The participation of new recruiters in the emerging fields of media, sports management, hospitality and NGOs is indicative that our students are also willing to explore new avenues,” said Keyoor Purani, chairperson placements, IIM-K.
As many as 40 firms which include Biocon, Astra Zeneca, Singapore-based Tolaram group and Dubai-based Gargash Insurance recruited summer interns at IIM-K for the first time.
The story at IIM-Calcutta is no different. Around 90 students were placed on day 1. IIM-C has 408 students to place this year, around 100 more than last two years. Morgan Stanley recruited from IIM-C this year exclusively for its London desk. The absence of Lehman Brothers was no longer felt, with Nomura the firm that took over Lehman making five offers to the students. The banks offered profiles in investment banking divisions, global markets, equity research, sales and corporate banking.
Summer placement got underway at IIM-B on Friday with 15-20 companies reportedly on the campus on day one of slot zero, the most coveted slot of placement. Continuing the trend witnessed in other business schools, investment banks and consultancies formed the bulk of recruiters offering both domestic and international offers. Sapna Agarwal, head of career development services at IIM Bangalore (IIM-B), said, “Initially, the institute was apprehensive about placing 350 students this year as compared to 267 last year but the response of recruiters has been very encouraging.”
While there’s no official comment, average stipends are understood to be marginally higher than last year as are the number of offers. Recruiters like RBS, McKinsey, Goldman Sachs, BCG, UBS etc are expected to visit the campus.
Last year, 85 students from IIM-B took up international offers among the highest across the IIMs and the number is expected to be high this year too. At IIM-Indore too, summer placements are underway and the institute will reveal details only after the completion of the process.
Additional reporting by Vinay Umarji and Chitra Unnithan in Ahmedabad