Tech Slowdown in Placement 2001

This years MBAs prefer Old Economy Jobs!

Graduating MBAs at top B-schools are looking forward to banking, marketing and IT instead of a career in Internet.

Last year, Internet was on everyone's mind. Though dotcoms did not set exactly the campuses on fire, but there was excitement in the year. Many students of graduating class of 2000 opted out of placement process to pursue their dreams. Many of those who took part in placement process, did not join the corporate world preferring to venture out on their own.

But times change! And they change fast!

With markets going southwards and Nasdaq at an all-time low in last 29 months, the bubble has all but burst. With the repeated calls of economic recession in the US of A, this year's placements at the B-schools are rather subdued with students preferring to avoid speaking about Internet firms.

One example was enough to highlight the anxiety of the corporate India. Infosys, the leading flagbearer of the last years "bill run" at BSE, and the torch bearer of "new economy" stocks was being watched keenly.

When the news arrived (on www.coolavenues.com ...of course) that Infosys (with over 3000 recruitments last year) has skipped IIMB and IIML, there was a panic in the industry. This coupled with a report by a HongKong branch of leading FI about a possible recruitment freeze at Infy sent shivers down the fund managers. There was lots of speculative selling and Infy touched lower circuit on first day news broke out and on the second day also was down by over 5%. It is now trading a low of around Rs. 5,600, a far cry from Rs 10,000 days. And Nandan Nilekani, MD, had to make a statement to the press that business plan of Infosys was unchanged and the recruitment was going on as scheduled.

Things stabilised a bit after that statement, helped by news from XLRI that Infosys had made 3 offers, a far cry from 11 offers last year. Though Infosys also confirmed going to IIMB for recruitment but dropped out at the last moment.

This story is a illustration of how the things have changed over the last one year.

As the recruitment season hits peak, the class of 2001 is heading to the traditional companies in droves. "They're still interested in technology, but technology companies with a revenue stream," says one HR person with a technology firm. At a conservative estimate, not more than a single MBA would be venturing for joining a start-up or venturing on own.

In US B-schools too, trend is the same. In 2000, about 5% of Darden's 240-student MBA class headed to dot-coms. In 2001, Anne Harris, director of career services at the University of Virginia's Darden School of Business, expects that to dwindle to two or three students - that's individual students, not a percent.

Companies, which saw record rejections last year, have heaved a sigh of relief. And the coming down of Wall Street Investment banks have only added the temptation to go back to the old economy jobs. There is security of fat paychecks, stable career and job security.

And traditional firms in marketing, finance, banking have heaved a collective sigh of relief at passing over of phenomenon called Internet!

CoolAvenues Team
In coordination with
Placement Committees at B-schools

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