IIT Placements: Many in B.Tech Computer Science aim for trading firms, not Google; internships show why

IIT Internships: Indian Institute of Technology (IIT) Kharagpur saw 38 high-paying quantitative trading firms make internship offers in just the first two days of the internship season with most going to students of B.Tech Computer Science and Engineering. Commonly known as quant firms, these financial technology (FinTech) companies are driving one of the biggest shifts in intern hiring across IITs, with international high-frequency trading (HFT) companies entering India and Indian HFT firms responding with sharp raises in stipends to compete for top talent, say students across IITs.

Students from IIT Kharagpur, IIT Kanpur and IIT Bombay told Careers360 that internship packages offered by several quant or HFT companies have doubled, quadrupled and, in some cases, increased six-fold over the past year. The trend has been particularly visible during the July internship season, which marks the beginning of campus recruitment at IITs, stated a student from IIT Kharagpur .

Another B.Tech computer science student from IIT Kharagpur, who did not want to be named, said the number of quant internship offers at the institute has more than doubled in the last two years with exceptional offers this year. He explained, “This year is a bit special also because a lot of international quant firms are coming to India. And the high-frequency Indian trading firms like Quadeye, Graviton, etc., also had to increase their stipends to compete with international companies.”

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IIT Placements: What are quant firms?

Quant firms, or quantitative trading firms, use mathematics, statistics and computer science to build algorithms that analyse financial markets and identify trading and arbitrage opportunities.

An IIT Kharagpur student explained: "These are high-frequency trading companies which require smart people for mathematical modelling of the financial market and spotting arbitrage opportunities. They rely heavily on graduates who are skilled in mathematics, statistics and computer science, along with the speed and reliability of their models."

Highest Package of IIT: There’s a ‘salary race’

IIT Kharagpur has seen the number of students getting hired by HFT companies surge.

"Four years back, only two to three people used to get into these companies from each IIT. The numbers were pretty small. But this time there were 38 quant offers in IIT Kharagpur alone,” the student added. The engineering college saw around 20 quant offers last year and nearly 10 the year before. The internship stipends have also risen sharply. “The highest package is Rs 40 lakh per month this year,” he stated.

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IIT Kanpur saw a similar growth in stipend but fewer offers. A student from IIT Kanpur, who also requested anonymity, said more quant companies participated this year. The rise is being driven not only by student demand but also by competition among firms.

Global firms hire ‘aggressively’

Students said several global quant firms have expanded operations in India, particularly in Mumbai, creating a new hiring landscape.

"The international quant funds are coming to India, trying to utilise the Indian financial markets. So, of course there is a lot more competition,” said the IIT KGP student. Firms such as Jane Street, Hudson River Trading, Optiver, IMC, along with Indian companies, such as Quadeye and Graviton, are now competing aggressively for IIT talent.

An IIT Bombay student who participated in the internship process said, “The student added that one firm's decision to raise stipends from Rs 5 lakh to Rs 25 lakh per month triggered a broader salary race across the sector.”

And the biggest leaps in offers came from Indian quant firms. “Foreign quants are more or less the same this year. Salaries have seen slight raises around 15%–20% and the number of interns has also slightly increased. Indian quants have seen a sudden increase in salaries, ranging from 2–5x [previous offers],” he said.

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"Optiver, IMC and these companies have opened offices in India. They are offering Rs 50 lakh to Rs 70–80 lakh for two months, while smaller firms are offering Rs 10–15 lakh," said the IIT Kanpur student.

Edging out Google, Microsoft

The growing presence of these firms has also altered student preferences during placements. For many, these quant firms have edged out even Big Tech, such as Google and Microsoft, in student’s top preferences.

"In IITs, like the top five IITs, among computer science students , Google and Microsoft are not our first preference anymore,” a student from IIT Kharagpur said.

Another B.Tech Computer Science Engineering student told Careers360 that he had an offer from Google but rejected it, and a “lot of other people” did as well. “The domain is shifting more towards quant than big tech. Google and Microsoft are not treated as the dream job anymore.”

Trading Companies at IITs: Trend varies

While the experience on increased stipend offers is university across IITs, the number of positions has not increased uniformly.

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IIT Bombay’s experience was similar to IIT Kanpur’s. The IIT Bombay student said, “Several large firms reduced the number of interns in comparison to last year but they hired with substantially increased stipends. Companies which took 20 people last year took only five or six this year with some firms raising stipends from Rs 5 lakh per month to nearly Rs 30 lakh per month.” He added that the total number of offers, across sectors, was lower this year.