As the country reels under a massive economic slowdown, over 100 top recruiters have revealed that there will be an overall decline in campus hiring in 2014.
The survey conducted by a group of 115 top recruiters like Tata, Reliance, ADAG, software giants, auto majors, power and energy sector, shows that 44 per cent of them expect a massive decline of 73 per cent in hiring in 2014 as compared to 56 per cent placement by 58 recruiters in 2013. Most of these recruiters hire engineers from reputed institutes including IITs and NITs.
Similarly, those looking to recruit MBA students have scheduled their visits to fewer campuses and are likely to hire a lower number of students this year. The problem has also arisen as the number of students seeking technical training from Government and private institutes has increased while the growth of the industry has remained stagnant.
Another major crisis that has hit hiring at engineering institutes this year is the Centre’s decision to increase the number of IITs. Because of this, IIT Kharagpur, Bombay, Madras, Kanpur and even Delhi could not find summer internship slots for their undergraduate students, affecting the placement scenario.
IIT-KGP dropped internship from its curriculum after Person In-Charge of Undergraduate Training & Programme, Professor SK Baraí pointed that “the current scenario of deployment for such training is gloomy” and expressed “difficulties in placing most of the students in their own departmental areas.”
The economic slowdown has resulted in decrease in production, which has a direct impact on requirements. The IT industry in India had become a growth engine for the economy, contributing substantially to employment, but this time major software firms have lowered their intake, according to the survey. This has caused much concern amongst the Technical Education wing of the HRD Ministry.
“The survey conducted by the recruiters found that due to strong economic headwinds, decisions on IT budgets are being deferred and sales cycles have been elongated from three to six months to six to nine months. Thus, companies are seeing a significant drop in client additions. Companies have started reducing project scope and are postponing new development of projects. All these factors are redounding to a decrease in overall demand for hiring in the IT sector in India,” pointed a HRD official.
Commenting on the findings, Deepali Singh, Business Head, Firstnaukri.com, which has conducted the survey said:”The uncertain economic conditions will continue to manifest themselves through a weaker demand for students in campus hiring. Most of the companies have adopted a watchful approach towards recruitments and its ramifications will be felt in campus hiring as well. We expect fewer students to get employment from campuses next year.”
Faculty sources in placement cell of IIT Kanpur, IIT Delhi and IIT Guwahati confirmed that compared with the corresponding hiring period last academic session, there has been a decline of about 44 per cent this year as recruiters did not turn up. last financial year there was a 40 per cent drop in the number of engineering graduates overall with 54 per cent alone at IIT Guwahati being recruited by the companies that visited campuses.