MBA Jobs: Consulting jobs rise in top B-school placements amid declining salaries, slowdown

NEW DELHI: Business schools across India are grappling with reduced campus placements as the global economic slowdown continues to affect hiring patterns, according to recent reports.

The placement landscape for 2024 management graduates has witnessed a downturn, with both median and highest salary offers declining compared to 2023 levels. Indian Institutes of Management (IIMs) and other prestigious B-schools have been forced to adapt, increasingly turning to their alumni networks and start-ups for student placement opportunities.

Despite the overall slowdown, the consulting sector remains the top recruiter across most institutes.

"The decline can be attributed to several factors, including reduced demand from legacy recruiters amid the global economic downturn," explained Kirti Sharma, associate professor of marketing and chairperson of Graduate Programme Placements at Management Development Institute (MDI), Gurgaon.

Decreasing MBA salary

XLRI Jamshedpur, ranked 9th in NIRF's management category, reported a median salary of Rs 28 lakh per annum for its 2024 batch, down from Rs 30 lakh in 2023. The highest domestic offer this year came from the banking, financial services, and insurance (BFSI) sector at Rs 75 lakh, while 2023 saw a peak domestic offer of Rs 78.2 lakh from the information technology and IT-enabled services (ITES) sector and an international offer of Rs 1.1 crore in the HR domain.

At Symbiosis Institute of Business Management (SIBM) Pune, ranked 13th in NIRF, the median salary held steady at Rs 25 lakh per annum in 2024, with the batch average at Rs 28 lakh per annum. The institute maintained consistent figures compared to 2023, when it recorded a highest CTC of Rs 49 lakh per annum.

“In general, several management institutes worldwide, including those in India, are indeed facing pressure due to global economic downturns, which have impacted placement opportunities for students. However, top-tier B-schools with strong alumni networks and well-established industry connections are better positioned to navigate these challenges effectively. As one of the leading management institutes in India, we have been proactively adapting to prepare our students for a competitive job market, and our placement outcomes reflect this commitment," said Ramakrishnan Raman, vice chancellor at Symbiosis International (Deemed University).

The Deloitte Campus Workforce Trends 2024 survey indicates a first-time decline in five years, with projected salaries for management students dropping by 5 to 10% across tiers.

However, 2023 showed positive trends for several institutions.

Mudra Institute of Communication (MICA) Ahmedabad reported an 11% increase in median salary to Rs 19 lakh, while Indian Institute of Foreign Trade (IIFT) Delhi, ranked 15th in NIRF, saw a 16% increase in average CTC to Rs 29.1 lakh, with its highest domestic offer reaching Rs 76.5 lakh.

MDI Gurgaon's placement chairperson, Sharma, noted that while 2023 maintained an upward trend, 2024 has seen a slight decline due to reduced hiring from legacy recruiters. "In anticipation of that, few start-ups and other recruiters were added during the recruitment cycle," she added.

Also read 'The campus is amazing': 4 IIMs find room to increase seats, courses, research in their new permanent homes

Most other B-schools are yet to release their 2024 placement reports, though many had reported improvements in their 2023 figures compared to 2022.

MBA Jobs 2024: Consulting overtakes IT, ITES

A significant transformation in recruitment patterns at India's premier business schools has seen consulting firms overtake the traditionally dominant IT and ITES sectors, according to recent placement reports.

In the XLRI Jamshedpur placements, consulting firms led the 2024 placements, making offers to 26% of candidates, followed by ITES and e-commerce at 20%, and sales and marketing at 17%. The institute attracted major consulting firms, including Accenture Strategy, Bain and Company, Boston Consulting Group, Deloitte, McKinsey, and PricewaterhouseCoopers, among others.

"A decade ago, it was predominantly the IT and ITES sectors that led recruitment," noted Raman. "This shift reflects the increasing complexity of today's business environment and growing demand for advisory and strategic skills."

The trend is visible across other top institutions as well. IIFT's 2021-23 batch saw 20% of job offers coming from the consulting domain, while sales and marketing accounted for 22%.

At MDI Gurgaon, ranked 11th in NIRF 2024, consulting and general management offered the highest package of Rs 60 lakh per annum for the 2021-23 batch, compared to the previous batch's highest offer of Rs 63.4 lakh from the IT and operations domain.

Also read MBA Admission: ‘PGDM at National Insurance Academy is industry focused; expansion plans in offing’

The MDI Gurgaon placements chairperson Kirti Sharma observed that while consulting jobs saw significant growth post-COVID, there has been some slowdown in the past year. However, she added, "Current indicators suggest a potential upward trend similar to the demand seen during the COVID period."

The shift towards consulting is attributed to organisations increasingly seeking management professionals with critical thinking, problem-solving, and strategic acumen to address challenges ranging from digital transformation to sustainability goals.