IIT compensation packages hold steady amid market slowdown, but anxiety rising for second round of recruitment

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.