Wednesday, April 05, 2006

ISB Placements 2006

Its all over the news. I just managed to get a glimpse of it on CNN. Some of the stats I remember..

> Highest International Salary : US $233,000.
> Highest Domestic Salary : Rs. 33.3 Lakhs.
> Average Domestic Salary : Rs. 11.77 Lakhs.
> Highest International Salary by a woman : US $223,000.
> 4 offers above US $200,000.
> IIM-C's record of highest international placement (US $230,000) broken.

A growing economy, globalization and inflation put together can explain this phenomenon. But well, I like to attribute it to the class of 2006.. Way to go guys!

On the other hand, it's a little scary to see the amount of hype around B-School salaries in India (probably as much as the wardrobe malfunction incidents). People tend to get unrealistic in their expectations.

Just consider the stats on the Domestic Salaries. Average is Rs. 11.77 lakhs per annum while the highest is Rs. 33.33 lakhs. It can be subject to many different kinds of interpretations. I'm not at ISB right now, so, I really don't know the exact scene. But, just so that expectations don't border unrealism, I'll take the middle approach.. not too conservative, not too optimistic.

For those of you who're thinking that this is an even distribution of people across the entire range, hold that thought. Not good! For those of you who even think that half the people got above average.. thats probably not true either. For the half-half case to happen, there has to be one earning equivalent on either side.. so, for the Rs. 33.33 lakhs there should be an equivalent smaller amount on the other end of the spectrum. Which would have to be about a negative Rs. 9.79 lakhs. I'm guessing that the lowest salaray grossed is more around 7 lakhs.
So, what does that leave us with? A more realistic median guess approach would be that most people fell in the range of 8.5 and 12.5 lakhs per annum (a rough estimate which would give an average salary of about 10.5 lakhs per annum), and a few extremely high domestic saries skewed the average all the way up to $11.77. So, the crux of this remains that more than half the people (maybe about 60%) got packages less than the average. Well, now.. doesn't that sound more realistic? The average age and work-ex at ISB is only 27 and 4.5 years respectively. So for everyone talking about MBA grads being overpaid, think again. I think this is what they deserve and thats what they're getting paid. The people with these "highest" figures, are obviously the people who are more quailfied (either have lot of work-ex, or have extremely niche work experience before ISB).

And for those of you who read this so called analysis and are thinking that IIMs must be better off.. well, the same analysis would hold good there too. Make informed decisions. Make informed opinions.

Unlike the very popular Siddhuism... in this case Statistics aren't like mini skirts. They don't easily reveal more than what they hide.

p.s. Amma, Appa.. If you're reading this. NO.. I"m not going to end up making 24 lakhs per annum :-). Reason : I'm not the next Bill Gates in the making as already substantiated by me joining ISB. He dropped out of college!


Anonymous Megh said...

caught myself smiling at the end of it!

5:08 PM  
Blogger FSN 2.2 said...

Do you mean to say that Bill Gates makes 24 lakhs per annum :-)?

Machi ISB studenz enna avalavu periya thillalangadingala? :-)

$233,000 per year!!!!!!!!!!!!!!

2:40 AM  
Blogger Manu said...

Thillalangadinga dhaan machi. Thillalangadinga dhaan!

9:34 AM  
Anonymous Anonymous said...

I wonder what these gusy would contribute towards our society.....
This creates a huge gap...

6:01 AM  
Blogger LifeIsAGame said...

good analysis along with setting the expectations right at the end :)..

10:12 PM  

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