Outlook 2002: What’s in store for B-schools?

Tarun Narayan in Mumbai

CIRCA 2001: It was a constant battle for the campuses beleaguered by recession. Management school students were doing their best to get a top summer assignment when in the past it would have been a smooth ride. Which is why, several new innovative image projection strategies cropped-up to catch the downturn-struck companies. And the fight for their substantial share in the placements pie was becoming a long-drawn struggle.

Cut to 2002: It is time of final placements for many campuses. Some of the campuses, seeing a silver lining, are pitching in for placements with select corporates envisaging a sector-specific boom.

Comments Dr AK Sengupta, director, SP Jain Institute of Management Studies and Research:” The batch of 2002 (admitted into the course in June 2000) is currently going through the placement process. The scene, this year, considering the economic slowdown, is definitely tougher than it was last year. We are anticipating an improved situation in the coming year, which will be reflected in the batch of 2003”.

Importantly, with foreign-based corporates increasingly outsourcing talent from India, trainees are tempered by the optimism of sailing through the rough tide, even in the prevailing climate of gloom. Therefore, several such campuses believe that the year 2002 will be better for placements in terms of the chunk of offshore placements that the trainees will be able to corner.

According to Mr Nilesh Shah, trainee, Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai, the growing initiative of business process outsourcing from India by several foreign majors will definitely arrive with attractive chairs for students. “Our aspirations are flying high on foreign jobs”, quips Mr Shah.

This new surge in foreign placements is expected to offset the negative fall that many of the sectors have suffered. The functions that will arrive to heal the bleeding economy are marketing and retail in the area of insurance banking. Says Dr H Santhanam, director, JBIMS, Mumbai: “The dependence on foreign placements will trigger the job scene for this year”.

There is also a shift in perception this year amongst the campuses on the nature of corporate recruitments. Business schools believe that the load recruitment phenomenon during the technology boom will retreat into the confines of the past. “This year we expect larger companies picking fewer students rather than fewer middle-level companies picking people in deluge”, adds Dr Santhanam.

“Emphasis will also be on companies that innovate and grow”, says Prof B N Ghodeswar, associate professor, marketing , NITIE. “ The culture to tide the turmoil is where our trainees will become a part of the stream”, he adds.

The Financial Express spoke to a cross-section of management students and faculty across the nation in an effort to compile the emerging pattern in B-schools in the new year.

Compensation pattern
The concept of exorbitant compensation packages is no more being regarded as the stop-shop for a placement choice. This transition in thinking is due to the prevalence of compensation cuts that was resorted to by leading corporates in the previous year. The high levels of salary quotes during the economic heydays, the campuses believe, is now expected to settle on a stability curve for the current year.

“Salaries will be heavily measured against multi-pronged skills” says Mr Ranjan Ravi, trainee, IIM-Lucknow. “Sky high cost-to-company (CTC) packages will be replaced by more rational figures arising out of realistic job negotiations”, he adds.

Affirms Dr Leena Sen, faculty in charge placements, Narsee Monjee Institute of Management Studies, (NMIMS) Mumbai: “Slowdown depicts an economy in transition and now the salaries will range from Rs 3.5 lakh to Rs 4 lakh per annum for a fresh inductee”.

Trainees believe that now the salary scales will also be determined by the extent of learning curve that the corporates will assess in the trainees during the trying recruitment rounds. “Corporates are definitely not swayed solely by the brands of big institutes. They will determine the candidate’s gap between learning and performance before they fix a compensation pay”, explains Mr Ravi.

The growing demand by corporates to get fresh and fast-paced knowledge professionals is one of the reasons why there is a general consensus on salaries no more narrating a tale of fancy figures.
“Every skill will now be measured in the smallest rupee”, opines Ms Janaki Ravindran, trainee IInd Year, IIM-Bangalore. But this does not totally dilute the concept of hefty compensation packages. There is also an extended point of view. “Sometimes calculated choices by corporates may also arrive with kingsize compensation”, informs Ms Ravindran. The best from the campuses, according to them, will still be able to notch a good deal. “ This year there would be only a few beneficiaries of such grand remunerations instead of the infinite many in the past”, opines Ms Ravindran.

New initiatives for the new age
While the thrust of campuses in the previous year was to push forth with promotional initiatives through seminars and corporate guest faculty, this year, a large number of them are looking at strategic partnering and infrastructural enhancement as the means to tread the growth path.

“An institute is always known for its proactive and creative ideas”, says Dr Sengupta of SPJIMR.

According to Dr Sengupta, the campus is initiating new courses. And such courses will be a take-off from the executive programmes that lend equanimity in exposure to fresh trainees as much as to experienced corporate executives. On the partnering front, the campuses are flush with ideas of tying up with more universities abroad as part of their action plan to cruise ahead.

“Collaborations with universities abroad, learning and pedagogic innovations are just some of the ideas that are waiting to be executed”, adds Dr Sengupta.

Some campuses are also strengthening knowledge management resources as a means of infrastructural upgradation.” Increasing resourcefulness that can facilitate skill development workshops and tie-up with technology corporates are a part of our agenda to accelerate our progress”, informs Dr Leena Sen of NMIMS.

Some of them are also strengthening their infrastructure as a part of their image overhaul. “We are also working on improving our infrastructure in terms of physical facilities and IT updation and courses.”, adds Dr Sengupta.

The wind of holistic education that swept the campuses a year ago is also recieving an enhanced welcome. Says Prof Sadhana Ghosh, faculty, NITIE: “We will be laying increased stress on cross-functional specialisations aimed at enhancing the problem-solving acumen. We are sure our courses will make companies come back to us all over again”.

Clearly, the B-schools seem to be smelling the scent of recovery.