Median salaries for IIT-B students fall for the first time in six years

MUMBAI: The median salary offered at Indian Institute of Technology, Bombay (IIT-B) job placements has dipped for the first time in six years.

The annual placement report of the institute reveals that the median salary offered by companies for campus recruitment fell by 4.3% during the last academic year. Static growth in the information technology (IT) and manufacturing sectors seems to be the primary reason why the annual salary package offered to the average student — which is usually on an upward trajectory — slumped this year.

The placement report put the annual gross median salary for 2016-17 at ₹9.38 lakh, down from ₹9.8 lakh in 2015-16. In other words, half the IITians who got jobs in campus placements last year received salary packages of less than ₹9.38 lakh per annum.

In recent years, the premier institute had been witnessing a steady, if not sizeable, swelling of packages. In the period between 2011-12 and 2015-16, the median salary offered by companies visiting IIT-B rose from ₹7.6 lakh to ₹9.8 lakh. While the highest salaries are often in tens of lakh rupees (converted from dollars), the majority of students get much smaller packages. The average gross salary, which indicates the average size of a package, last year was ₹11.41 lakh per annum, while the average cost to company (CTC) was ₹13.38 lakh.

The usually high-paying information technology (IT) sector, which is witnessing massive layoffs, is likely responsible for lower salaries, suggest experts. The number of job offers made by IT companies dropped from 270 in 2015-16 to 184 offers last year.

“While the IT companies that produce original products don’t reduce their offers, the offers made by the IT services industry has shrunk. Many of the high paying companies haven’t made many campus visits. They are not making many offers either. The offers made by engineering firms too seem to be static,” said Kamal Karanth, an HR executive.

Data reveals that students, in general, received smaller packages this year, with fewer companies offering higher salaries. For example, during 2015-16 placement season, 96 companies had offered more than ₹11 lakh per annum — the highest bracket — to 435 candidates who were placed. By comparison, a year later in 2016-17, 403 candidates received above ₹11 lakh packages, even though the number of companies offering in the highest bracket rose to 111.

The premier institute also saw fewer students getting placed during the last placement season. Of the 1,718 students who registered for the placements, only 1,114 (65%) were placed. By comparison, 1,143 out of 1,628 (70%) candidates found jobs in 2015-16. IIT-B clarified that not all of the registered candidates participate in the placement process. Some opt for higher studies instead.

USUALLY HIGHPAYING IT SECTOR, WHICH IS WITNESSING LAYOFFS, IS LIKELY RESPONSIBLE FOR LOWER SALARIES, SUGGEST EXPERTS