IIM Trichy Placement Crisis and the Declining Value of an MBA

A shocking series of posts by educator Ravi Handa has highlighted the placement issues at IIM Trichy, raising broader concerns regarding the saturation of top B-schools in India, a weakening employment landscape, and the diminishing value of an MBA degree.

The Stark Reality of IIM Trichy’s Placement Figures

IIM Trichy is highly regarded as one of the leading institutions in the nation. Handa expressed, “It is an IIM. Having educated many MBA aspirants, he understands the challenges involved in gaining admission to an IIM.” His remarks were prompted by the concerning placement statistics: “15% of students, which amounts to 59 individuals, did not secure employment, while only 27% received a CTC exceeding 20 lakhs.”

This revelation from a well-respected, newer IIM was surprising to many. Handa added, “While he was aware of the tough job market for MBAs, the extent of the challenges faced at an IIM came as a shock. Gaining admission into IIM Trichy is no small feat, requiring hard work to ace a rigorous exam. It is a dream institution for many and carries a hefty price tag of approximately 20 lakhs.”

Responses to the Placement Issues

IIM Trichy is one of the best colleges in the country. It is an IIM. Having taught MBA aspirants long enough, there is an understanding of how hard it truly is to get into an IIM. With 100% placement achieved over the last two years, having 1 in 6 students unemployed is unacceptable!

His comments ignited a flurry of responses, shedding light on systemic changes within higher education and the job market. One individual remarked, “If you pack 1000 students into every batch at an elite institution and multiply this by creating numerous elite institutions, the prestige of these schools diminishes.” The underlying message was clear.

Brand Dilution and Employment Challenges

Another commenter stated, “The proliferation of IIMs has diluted their brand value. Many colleges reject companies offering below a certain salary threshold to maintain their ‘brand’ integrity, thereby leaving students without opportunities. Although they may find jobs offline, often these positions come with reduced salaries.”

Mismatched Talent and Opportunities

Numerous users pointed out the disconnect between skills and available roles. “The primary issue seems to be an increasing trend where talented individuals struggle to find employment. Employers now hold high standards, making the job market incredibly competitive.”

Another user added, “Returning to work after a break can be as challenging as climbing a mountain. The current landscape of employment and career progression is undeniably tough.”

Shifts in Job Market Demand

Many individuals highlighted how changes in job market dynamics have altered demand for MBAs. “In the past decade, the biggest consumers of MBAs were FMCG firms, Big Four consulting companies, and the tech industry in that order. The problem arises in tech, where roles in product management no longer necessitate an MBA. Even the top-tier product companies have acknowledged that hiring talented individuals early, such as interns from prestigious IITs or BITS, is often sufficient.”