Dear Students,
LAST WEEK WE ASKED:
With double dip recession hitting US, do you think placements this year will suffer at Indian B-schools?
BEST RESPONSE
Recession will not have much effect on Indian B-school as it did in 2008-09. But since India is partially integrated with the world economy and Indian IT sector and consulting companies is partially being flourished by US economy and lending institution, we can't neglect it's devastating effect on Indian IT sector. Tier I B schools will be least affected as their batch sizes are too small for it to be too big a concern. The real impact of recession will be on other B school as the demand for human resources is going to come down.
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- Nilaya Mitsah Shanker, Shri Ram Swaroop Memorial College Of Engineering And Management (SRMCEM), Lucknow
OTHER RESPONSES
I do not think that the placements in the Indian B-school will suffer because of the double dip in US. India now has a strong domestic market and is challenging the US economy. The strength of India’s economy will generate more business and hence would require more manpower to handle the business, leading to numerous job generations within the country. In the last decade, India has also attracted a huge number of multinational companies who have expressed their interest to do business in India, which itself is also another testimony that the job market for India is really looking attractive.
- Sabyasachi Dasgupta, Mudra Institute of Communications, Ahmedabad (MICA)
Of course with double-dip recession hitting the US there will be shortage in availability of jobs around the world as well as in India. The Indian economy currently is quite strong and their is hardly much impact of this situation. But the whole world is interdependent on each other so despite that there will surely be some influence on the placements offered by B-schools in the long run.
- Shivam Chhabra, Integral University, Lucknow
With the latest data indicating higher industrial output and retail spending, a double dip recession may not be hitting US just yet. Moreover, not all sectors there are laying-off. In fact, sectors like healthcare, hospitality and food have actually been on a hiring spree lately. And the bigger surprise comes from the major auto makers who are adding employees too. Only, job opportunities in the banking sector could be tepid what with most big names opting for lay-offs. Overall, I do not see placements taking a major hit at Indian B-schools so soon.
- Neha Chamaria, Symbiosis Centre for Distance Learning, Pune
The placements in Indian B-schools will suffer initially due to the double-dip recession in US. While the impressive pay packages will be cut, job opportunities in market will be there. The whole corporate sector will not be affected by this but the graduates in the sector of finance and IT will face some turmoil as compared to others as US exports and investments are good in India.
- Aayush Kumar Sharma, Institute Of Management Studies, Noida
The epicentre to entrepreneurship is no longer confined to the developed nations but has taken Indians in its grip. Recent double dip recessions in the US will surely create commotion in economically integrated countries worldwide but will affect placements in Indian B-schools to only a small extent. On the positive note, education imparted in Indian management institutions these days are of international standards; thus gaining world class status. Recession in US will not diminish the knack of Indian erudite managers but will help them to tackle the inevitable tremors of economic crisis.
- Dipika Sahoo, College of Engineering and Technology, Bhubaneswar
The future impact of this debt crisis in US and Europe is still not predictable and no one clearly knows the outcome of this after a few months. However the crisis would not be the same as it was in 2008-09. As of now there are no concrete signs from companies about freezes or even cutbacks in hiring. Those aiming for multinational banks or IT companies could face some problems but for the non-IT companies hiring might be quite smooth.
- Shipra Gosain, Amity Business School, Noida
The placement functioning of top B-schools is far untouched from the recession effect. What employers expect from these candidates is to provide end to end solutions nurturing the bottom line which is very much needed to tackle the current hitting double-dip recession in the US. It can affect the placement scenario of lower ranking colleges but not to such an extent which would lead to chaotic situation among management graduates.
- Nandish Agarwal, Galgotias College of Engineering and Technology, Greater Noida
In context of placements, the international companies will resist to come for campus placements as more recruiting people means more cost incurring and if the companies financial sources will already being in critical stage then they can even give pink slip anytime if they have hired the candidates. There may be a dip in placements offers and many of experts have clearly mentioned that the US will remain under pressure for sometime and will go far with a negative outlook.
- Manav Badhwar, Amity Business School, Noida
The recession will impact the hiring sentiment across borders and disciplines. The companies being unsure of their product demand will cut down on spending and expansion of their employees base. Thus, making the passing out batch the most vulnerable. This shift in approach of the companies is going to impact the placement process resulting in fewer companies turning up and the stemming of rise in offers. The grim economic scenario will weaken the job market making it hard to get placed in desirable places.
- Rahul Gautam, IIIT, Delhi
India Inc is strong enough to withstand the impact of US downgrade because the country has traditionally been a defensive market, but some sectors like IT, pharmaceutical and infrastructure might get affected. Placements will definitely get affected; this double dip recession will also have some impact on the salaries that will be offered, especially from the foreign companies. Usually most of students get multiple offers during the placements. This time the multiple offers may not be there but I think it’s too early to say whether jobs will really be affected.
- Amit Kumar, Amity Business School, Noida
If consumption in developed countries decline, India's export could be hit while off-shoring jobs may also be affected. To the extent that the domino effect will hit growth in India, there could be job losses. Companies would definitely try to cut its cost by terminating some of its employees and will be very cautious while placing new students from different B-schools.
- Ayush Hingle, Amity Business School, Noida
With fears of recession looming large over the entire world, it is posing as a great threat to economies of many nations. With names like the US involved, the picture grows even grimmer and sordid. Companies will adopt various cost cutting measures. The most commonly used are firing unproductive employees and employing lesser people. The students at B schools will bear the brunt of the situation as only few placement companies will turn up. Thus the possibility of good placement offers is quite bleak.
- Rahul Malik, Amity Business School, Noida
With the double recession hitting US, placements this year will be affected in the Indian B-schools especially in those companies which are US-based, having offices in India. Lack of capital generated and less jobs being created in US will lead to less amounts of money generated there, and hence job cuts there and in India. Also the job offers which would be coming or taking place in relation with India will also result less jobs for Indians.
-Siddharth Jain, Amity Business School, Noida
Your responses should reach us at edu@businessstandard.com by Monday evening every week. Please ensure that your responses do not exceed 100 words. Avoid attachments and email your full name, institute's name, batch and complete mailing address. The student who gives the 'Best Response' will be awarded Rs 500.
THIS WEEK'S QUESTION:
Do you think lessons in corruption should be part of syllabus at B-schools? Why?
