When Economy Is Doing Well, Why Are IITians Getting Low Salaries?

The Indian Institute of Technology (IIT), one of the most coveted institutes in India, has cut-throat competition and requires years of perseverance to get a ticket to be part of its in-class intellectual experience. 

Therefore, it’s only right that IITians have the full right to demand jobs that pay them adequately for their hard work. However, their wish seems to be going down the drain 

High-Paying IIT Jobs A Myth?

This year’s placement season has turned into somewhat of a disappointment for graduates looking for high-paying jobs. 

Companies are moving a step back when it comes to hiring while the ones which are hiring on a large scale, are offering too low salaries.

The situation is even grave for those students who are almost at the end of placement season, with annual packages dropping below Rs 10 lakhs. 

Organisations that used to pick half a dozen students have hired only one or two at best. 

IITians who have bagged jobs at their campus placements believe that the pay scale is extremely low and are looking for better prospects in the market. 

However, the situation is kind of more favourable for undergraduates with BTech+dual degrees, with 81% of the 903 participants having received job offers. 

For instance, Bharat Petroleum Corp. Ltd proposed an annual package of Rs 19.5 lakh, while HCL Software offered Rs 21.9 lakh, and Tata Consultancy Services and Larsen & Toubro presented annual packages of Rs 9 lakh and Rs 7 lakh respectively. 

What Is The Reason Behind This Drop In Salaries?

The global economic slowdown has forced companies to reduce their hiring numbers and reduce salary packages. The COVID-19 pandemic is responsible for the approaching global recession. No doubt, the economy has surged post the lockdown sessions, but things haven’t returned to pre-Covid times.

Artificial Intelligence (AI) is one of the biggest contributors to the recent growth in the Indian economy. But very surprisingly, it has put at stake the jobs of those very people who created it. The news of companies laying off their employees is making headlines almost every day. 

Thus, AI is also one of the reasons causing economic growth, but also reducing the hiring numbers of companies. Firms are trying to reduce their cost by making AI do the tasks, which previously required humans. 

This drop in recruitment drives is causing unemployment. Even when people are working, they’re getting meagre pay, thus contributing to an economic slowdown. 

Director of IIT Indore, Suhas Joshi, told ‘The Times of India’ (TOI), “The global economic slowdown has significantly impacted the campus placements for the 2024 graduating batch of IIT Indore. The reduced hiring numbers of recruiters compared to the previous year have resulted in a challenging placement season.“

IIT Indore has tried to offset the impact by tapping into alumni networks and reaching out to a broader pool of potential employers, such as Public Sector Undertakings (PSUs).

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Students at other IITs are no less vulnerable. A student at IIT Bombay, told TOI, “Companies that till last year picked 5 to 8 students are picking 1 or 2 this year. Several are still not yet hired”. They are left with no other option but to search for opportunities outside campus placements, depending on job portals (LinkedIn, Indeed, Glassdoor, etc.) and job fairs. 

“Spectrum Technologies offered Rs 3.6 lakh for trainee engineers and Rs 6 lakh for trainee design engineers. Startoon Labs and Gem Machinery offered Rs 5.5 lakh annually. Skyroot offered Rs 5 lakh. Sri Chaitanya and Next Education offer Rs 4.8 to 6 lakh per annum,” said a student from IIT Kharagpur. 

Phase two of placements is even worse. Companies are offering as low as Rs 60,000 to Rs 80,000 annually, which is considerably lower than in previous years. 

What Are Institutes Doing In Response?

Students and placement office staff are trying their best to attract more companies, reaching out to job portals, negotiating packages with NGOs and providing guidance to final-year students. 

Praveen Tyagi, owner of IITians’ Pace, a tutorial for entrance tests, said, “While AI has reduced jobs and international FANGcompanies did not come to the campus, we saw this as an opportunity to pick up talent. We conducted tests to hire IITians, and hundreds of them took our test. Students conducted mock online lectures, and those who had good communication skills were picked. We have offered 25 students Rs 12 lakh per annum.”

The situation is very poor at IIT Delhi, with each placement phase lasting for about 15 days. As of early April, approximately 40% of the 1,814 students registered with the Office of Career Services (OCS) have yet to secure employment. The OCS has now decided to conduct separate placement drives for PhD candidates. 

Candidates are preparing for interviews rigorously. A student at IIT-D said, “We are mentally prepared for a set pattern of questions, but this time the companies were more demanding, seeking fewer candidates with specialised skills in artificial intelligence and machine learning for annual packages ranging from Rs 10-50 lakh,” adding that he lacked the required skills because his interest lay in software development. 

Organisations such as Spectrum Technologies and Startoon Labs have offered relatively modest salary packages ranging from Rs 3.6 lakh to Rs 6 lakh for trainee engineers, at IIT Kharagpur. Startups such as Skyroot, have also reduced their hiring numbers and remuneration. 

Therefore, there is no doubt that the economy is growing and there is improvement in the other sectors. But when it comes to technology, AI is replacing humans on many levels in this field, thus, incentivizing firms to reduce their recruitment drives, in order to reduce costs and increase their profits.

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