Early reports tell me that more than a 100 people have been placed on “day 0” at the Summer Internship Recruitment at IIMB. In our batch (2 years back) 26 people got “day 0 summers” and that was considered huge. It’s grown four times now! Thankfully this is a larger batch – has 270 odd people so there will be enough people left over for day two (where most FMCG’s recruit). If this were our batch (wiht 180 odd people), even day one companies would’ve had a tough time.
What is happening is that the number of foreign recruiters and domestic “high salary recruiters” is growing exponentially. From 3 day 0 firms in our senior batch to 7 for our batch to around 30 for this batch! It seems like the IIM brand (which was largely restricted to India over the last forty years) is finally being recognized abroad, especially in investment banks. And that the market everywhere (both india and abroad) is strong leading to heavy recruitment.
Regarding the larger implications, soon “day two companies” will figure out they are not getting good enough people from campuses. The only capacity expansion in IIMs will be because of the OBC quota (all IIMs have expanded in hte last few years so unforced expansion is unlikely). And with foreign firms pouring in like never before, these day 2 firms will have to probably push up the salaries that are offering, thus pushing up salaries across the board.
Once they increase salaries for freshers, they will realize that this salary would be good enough to buy alumni, who started off at much lower salaries. So the demand for us alumni is going to go up, and we (at least those in “traditional IIM jobs”, unlike me) can expect better pay.
On other fronts, IIMs I, L and K will join A,B and C in the investment banking fun, and can expect to take off now.
The rest of the world, looking at the demand for IIM grads, will want to join IIMs, and more people will write the CAT. Of course, seats are limited so it will be fight. Perhaps more B schools will become better to join in the race. Right now the gulf between the top 20 b schools and the rest is huge – it might become huger.