IIT Placements 2024: Fewer Big Company Offers, Shifting Focus to Indian Start-ups

New Delhi: The initial phase of IIT's placement for this year ended in December, marked by an unusual lack of transparency in sharing data compared to previous years. 

However, some students and experts suggest that the secrecy may be attributed to the slower job market observed by the IITs. Insider information from IIT sources indicates that the first phase fell below expectations, causing the institutes to prepare for a second session in anticipation of increased participation and job opportunities from companies.

A professor from a leading IIT revealed that in the previous years, the placement process concluded swiftly within 15 days. However, this time, the response from certain companies lacked encouragement. The placement concluded on December 20, at their Institute and compared to the previous year, there were fewer offers from top companies.

Usually, the IIT placements occur in two phases, with the first in December and the second spanning January to June. This year, a noticeable decline is evident in the number of students successfully placed. IITs also Consider not to Disclose Packages in Placement Reports and Focus on Mean Salaries

The IIT Delhi claims students have received 1,050 job offers, including pre-placement offers (PPOs) in the first phase of the placement season. Out of these, around 1,000 students were uniquely selected in the first phase.

IIT Delhi's Placement 2023 Decline 

IIT Delhi placement data has asserted that students secured 1,050 job offers, including pre-placement offers (PPOs), in the initial phase of this placement season. Approximately 1,000 students received unique selections during this phase, marking a decrease from last year's figures of over 1,300 job offers and more than 1,150 unique selections. In contrast to the previous year's 10% increase in unique selections and PPOs, the institute did not achieve the same growth this year.

IIT Tirupati's Placement Success and Trends 

According to the data, IIT Tirupati secured placements for only 83 students during the initial phase of the placement season. The offered compensation ranged from INR 6.5 lakh per annum to INR 41.68 lakh per annum. Several prominent companies either opted out of the process this year or hired fewer than five students from the third-generation IITs. This is due to the trend observed last year, where the highest salary experienced a decline, dropping from INR 69 lakh per annum in 2022 to INR 46 lakh per annum in 2023.

IIT Madras Placements 2023-24 Success

This year, IIT Madras has successfully placed approximately 50% of its students, with the median salary of offers in the first phase surpassing INR 19 lakh.

However, the previously disclosed data for the 2021-22 IIT Madras Placements indicated an average salary of INR 21.48 lakh per annum for IIT Madras students, with the highest offer reaching INR 2 crore.

In the previous academic year, IIT Madras achieved a record-breaking 1,199 job offers from 380 companies across phases I and II of campus placements. Despite this success, the institute continues its tradition of not divulging specific figures regarding placed students, total offers, and participating companies.

Likewise, IIT Kanpur reported 989 offers at the conclusion of the first phase of the 2023-24 IIT Kanpur Placements, marking a decrease from the previous year's 1,128 job offers, including 208 pre-placement offers (PPOs). The count of international offers also witnessed a decline from 74 in 2022 to 22 in the current session.

Why is there a 20-30% Dip in Placements?

Former IIT Delhi director and VC of BITS Pilani, V Ramgopal Rao, conveyed that, in his view, there has been an overall decline of 20-30% in placement statistics this year owing to the global economic slowdown. 

He mentioned that much hiring occurred during the Covid period, and companies are currently proceeding with caution, anticipating a possible recession and economic slowdown. According to him, the current figures are anywhere from 20 to 30% lower compared to last year. However, he expressed confidence that the situation will improve as the Indian economy is thriving without any concerns. 

IIT Bombay's Rectification on Salary 

After initially stating that over 85 students received salary packages exceeding INR 1 crore, IIT Bombay later revised the data, acknowledging only 22 offers surpassing INR 1 crore. Sources indicate that this correction followed concerns raised by other IITs during a recent All IITs Placement Committee meeting.

Shift in PPO Dominance & Startup Rise in IIT Placements

Lakshmi Narayan Ramasubramanian also mentioned that certain hirings from prominent companies are in the form of Pre-Placement Offers (PPOs) rather than unique offers.

He stated that there has been a slowdown, and notable companies like Amazon and IBM were either absent or made limited hires from IITs this year. Among those that did hire, a significant portion came through PPOs, although there has also been substantial recruitment by startups. 

Until the previous year, startup presence in IIT placement sheets was minimal due to concerns raised by students. They complained that while startups issued offer letters with the promise of inflated CTC, they often failed to materialize into actual joining dates.

In the initial rounds, startups weren't favored due to the lack of a guarantee regarding the offer letters, leading to instances where students faced uncertainties. Some in my class were promised substantial CTCs but never received a joining letter. 

However, the Office of Career Services at IIT Delhi has scrutinized companies, identifying those that uphold their commitments and align with students' preferences for on-campus presence. As a result, startups were discouraged unless they had a proven track record, he clarified.

Shifting Placement Trends & Strategies at IIT-Kharagpur

Rajib Maity, Chairman of Career Development Cell at IIT-Kharagpur, commented that the Placement statistics across most IITs are relatively subdued. The students, cognizant of the current global economic conditions, are exhibiting a preference for domestic offers compared to the previous year. In preparation for phase II if IIT Kharagpur Placements, the institute intends to extend invitations to new companies and start-ups.

Believing that not all startups should be evaluated uniformly anymore, as many of them boast proper and substantial funding, offering valuable learning opportunities, V Ramgopal Rao said that many students are increasingly drawn to working for startups because they believe the experience will be more enriching than joining a larger organization. 

While there may be concerns about the stability of jobs in startups, the growing trend suggests that more students are inclined towards startup roles, primarily driven by their ambition to start their ventures.

Furthermore, he noted that numerous engineering colleges, including BITS Pilani, are now leveraging alumni connections for the second phase of the placement season. 

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