Good Days Are Here Again
Both average and highest salaries from the top B-schools in the country have risen sharply in 2017
Photo Credit :
Shivram Rai is the son of a peon. Irrespective of their circumstances, his father who had always believed in Rai’s calibre took an education loan of Rs 10 lakh when his son made it to the Indian Institute of Management, Ahmedabad. Last year, he was placed in a multinational consultancy that offered him Rs 16 lakh per annum. Rai is happy he did not let his father down.
Every year, several students, like Rai, attempt to change the fortune of their households by trying their luck in MBA courses. A degree in MBA, especially from a well-known business school, is seen as a ticket to a good job, a six-figure salary and a high life — the reasons why it is one of the most sought after courses in India.
However, due to the global economic slowdown, the packages and opportunities were slightly compromised for the last few years. The good news is that they have risen sharply in 2017; for the batch of 2015-17, both in terms of average salary and highest salary. According to placement reports, S. P. Jain Institute of Management and Research (SPJIMR) Mumbai, Jamnalal Bajaj Institute of Management Studies (JBIMS) Mumbai, Management Developmet Institute (MDI) Gurgaon and XLRI—Xavier School of Management Jamshedpur recorded their highest average salary in MBA placement 2017. This trend was not limited to certain sectors, but an upturn has been witnessed across sectors including banking, finance, manufacturing, services, consultancy, insurance and IT/ITeS.
Sample this: At XLRI Jamshedpur, the highest salary stood at Rs 43 lakh this year against Rs 29 lakh last year, posting a jump of over 40 per cent. At Mumbai based JBIMS, the highest pay package was Rs 34.30 lakh against previous year’s Rs 26 lakh, an increase of over 30 per cent.
Surprisingly though, rise in average salaries at many IIMs have remained dull compared to non-IIMs. Though not so much at new IIMs. For instance: IIM Tiruchirappalli posted a jump of over 38 per cent — from Rs 23.81 lakh to Rs 33 lakh. Whereas the top salary package at IIM Indore rose 22 per cent: from Rs 32 lakh last year to Rs 39 lakh. IIM Bangalore, which didn’t announce its highest domestic or international pay package for PGP 2015-17 batch, recorded a meagre 2 per cent jump in average salary. Whereas IIM Ahemadabad posted a 2 per cent rise in average salary and over 10 per cent in its highest salary. Data for IIM Calcutta was unavailable for comparison.
One of the many benefits of studying MBA from top business schools is that they provide a platform to go global. This year, the placement offers not only saw a hike in average salaries but also in international packages. Thanks to the improving global economic scenario, companies are showing confidence in offering international packages.
To put things into perspective, the number of international offers at IIM Bangalore during the 2017 placement process, was 13. Around 20 international offers were made at the Indian Institute of Foreign Trade (IIFT) this year, and three students bagged packages of over a crore per annum. Also, six students got Rs 75 lakh per annum for international jobs. At MDI Gurgaon, as many as 15 international offers were made.
In terms of salary offers, MDI reported its highest international offer package of Rs 52.45 lakh per annum, whereas an IIFT, Delhi candidate was hired for Rs 97.50 lakh per annum. A student of Faculty of Management Studies (FMS), Delhi University, was also offered a similar package. IIM Bangalore’s average salary offered in the overseas category was Rs 52.13 lakh per annum.
The return of confidence in the market was reflected in the fact that most of the top B-schools closed their placement within three to seven days of starting and with remarkably high salary offers from an increased number of recruiters from all sectors.
Traditionally, the majority of international offers are made by consultancy giants, closely followed by finance and FMCG companies. Names such as Deutsche Bank, Goldman Sachs, Bain and Company, Boston Consultancy Group, AT Kearney, Mckinsey, Bank of America, Morgan Stanley, Credit Suisse, American Express, Citi Bank, Edelweiss, Blackrock and Modelez often participate in business school placements in India, but most of them offer international job profiles at only top-notch B-schools.