IITs witness fall in placement due to hiring slump: Report
New Delhi: Salaries for engineers graduating this year from the Indian Institutes of Technology (IITs) have declined due to a hiring slowdown. According to separate studies by Deloitte and TeamLease, the annual pay for the class of 2024 is now in the range of Rs15-16 lakh, media reported.
The Deloitte Campus Workforce Trends 2024 study indicates that compensation for graduates from the top 10 engineering institutes, which include eight IITs, has seen a slight decrease. "They can expect a median compensation of Rs16.3 lakh per annum in 2024 as per our study," said Neelesh Gupta, partner at Deloitte India.
Economic Times reported, citing The TeamLease Services study conducted in May, that annual pay has dropped to a median of Rs15-16 lakh for 2024 graduates, compared to Rs18-20 lakh in 2023 at the older IITs.
Placements are ongoing at some IITs, with the season extending slightly longer than usual, according to individuals involved in the process."The decline in median salary is particularly pronounced across the seven old IITs," said Ramesh Alluri Reddy, CEO, TeamLease Degree Apprenticeship.
At IIT Ropar, the average annual salary has seen a slight decrease from Rs18 lakh in 2023 to Rs17 lakh, according to placement officer Preeti Garg.
"There is a dip in the number of students getting placed this year as well compared to the previous year," said Garg.
A student who was part of the placement cell for the class of 2024 at one of the older IITs confirmed that the average pay packages at the institute have declined, primarily due to lower top offers in 2024 compared to 2023.
Top offers at IITs this year have almost halved from Rs4 crore for the 2023 batch, ET had earlier reported.
"The factors contributing to the decline in median salaries include the global economic slowdown, industry shifts favouring sectors like manufacturing and electric vehicles (EVs), increased competition, and the preference for offering internships over full-time positions," said Reddy.
Further, many companies have shifted to skill-based hiring practices, according to TeamLease.
"Despite the wide salary range, with some individuals commanding hefty packages exceeding Rs 1 crore or even Rs 2 crore, many graduates are witnessing offers below Rs 10 lakh, with some as low as Rs 6 lakh per annum," Reddy said.
In 2022, out of 17,900 registered students across all IITs, 14,490 secured placements, leaving 3,410 unplaced, resulting in a 19% unplaced rate.
This year, with a surge in registered students to 21,500, only 13,410 have been placed.
As a result, a whopping 8,090 without placements, up 38%, the report said.
The study said the rise in unplaced rate indicates a rising skill gap.
The older IITs are located in Bombay, Delhi, Madras, Kharagpur, Kanpur, Roorkee, and Guwahati.
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