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Business News/ Industry / Infotech/  IIT compensation packages hold steady amid market slowdown, but anxiety rising for second round of recruitment
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IIT compensation packages hold steady amid market slowdown, but anxiety rising for second round of recruitment

The median cost to company (CTC) is registered at ₹20 lakh pa, a bit lower than FY23's ₹22 lakh pa offers, but higher than ₹19 lakh pa offered for FY22.

File Image: Students attend a lecture at the Indian Institute of Technology - Mumbai (Photographer: Santosh Verma/ Bloomberg News.)Premium
File Image: Students attend a lecture at the Indian Institute of Technology - Mumbai (Photographer: Santosh Verma/ Bloomberg News.)

Compensation packages for FY24 recruitments at the country's premier Indian Institute of Technology (IIT) campuses have remained in a steady zone, when compared to offers made in 2022 and 2021, as per a Careernet analysis, The Economic Times reported.

Notably, the median cost-to-company (CTC) is registered at 20 lakh per annum (pa), a bit lower than FY23's 22 lakh pa offers, but higher than 19 lakh pa offered for FY22. The highest offer during this round of recruitment was 3 crore, up from 2 crore in FY23.

Post Phase 2, the projected overall placement rate across all IITs stands around 70 percent, reflecting a decline from the previous year's 77 percent, according to Careernet's analysis.

Among the 17,800 enrolled students this year, 15,100 have signed up for placements, a slight decrease from the previous year's 77 percent placement rate for a batch of 17,300 across IITs.

Hiring Patterns and Campus Sentiments

While there's a visible slowdown in recruitment within IT services and consulting sectors, the data indicated an upturn in R&D and core sector hiring compared to the previous year.

It added that despite approximately 40-45 percent of student placements in the initial phase, there looms a sense of apprehension among IITs regarding the forthcoming Round 2 placements.

Further, insiders told the paper that "strategic manoeuvring" tactics, like advancing the appearance of companies originally scheduled for later slots to the first week, were undertaken to project a positive start to the placement season. It added that IITs have internally decided to not publicise the "crore" bracket offers keeping in mind prevailing anxiety.

There is a projected dip of 10-15 percent in Phase 1 placements compared to typical years, said Anshuman Das, CEO of Careernet.

Expectations Ahead

With emphasis now on Phase 2 placements, IITs aim to achieve a 75-77 percent placement rate, it added. The top 8 IITs have a goal to cover around 30 percent more placements to reach their typical 90-95 percent target.

Industry experts told the paper that there are concerns about lower-tier IITs facing challenges in attaining their standard 60-65 percent placement rate this year.

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Published: 12 Dec 2023, 11:14 AM IST
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