Monday, 13 June 2016

Explore the ‘No Jobs’ Land for students

Introduction:
It’s every students dream to work in a reputed company after completion of studies. Aim is to have a bright future, a flourishing career to explore their talent and same was the case with the students of IIM and IIT’s.
India’s biggest e-commerce firm, Flipkart’s decided to defer the joining date of students and following the same, one of the top 5 construction companies L&T Infotech delayed the joining leaving the students of IIT and IIM in lurch.

But that was not all, looks like Flipkart's loss was gain for for other ecommerce companies like Amazon and Paytm who offered jobs to students as they were asked to wait by Flipkart. But to dismay, later the students were asked to wait until December to join and not June as assured.

Reason stated by companies for delay :
Flipkart gave a strong reasoning that due to company’s internal restructuring they were not in a position to absorb the students immediately but the company assured Rs. 1.5 lakh as compensation or “joining bonus” to all student recruited.

L&T Infotech had given a ‘letter of intent’ and not ‘Appointment letter’ to students. After a span sixteen months, the company conducted an assessment test for 2000 people. Only 150 students were able to clear the test and the rest offer letters were cancelled.

Behind the Story:
Flipkart- Online retail marketing saw a major announcement on 29 March 2015, where Central Government allowed 100% FDI. Due to this, India’s e-commerce companies got a hit by other foreign e-commerce companies in market.

Before this Flipkart use to offer discounts but due to 100 % FDI , the discount was restricted to certain level. Also last Diwali 2015, Flipkart was not able to attract customers to heavy discount and ultimately the purchases slowed down when compared to previous Diwali 2014.

Flipkart also tried to gather funds of 15 billion dollars in span of 6 months from 15 companies. But was able to raise 700 million dollars from funding.
Even before they started the funding process, they had sent ‘letter of Intent’ to the students offering them Rs15-20 lakh.
It is assumed that due to the above mentioned reasons the company has deferred the joining of students.

L&T Infotech : The company gave offer letter to students almost a year and half back, in early 2015. The market was pleasing then and L&T was big in real estate and was just entering Technical Cloud Computing sector. But today the market scenario has completely changed infact it is just the opposite. It is assumed that due to this the joining has been deferred. 

Highlighting the Issue:
Such incidents are not new in the IT sector. Many a times company has deferred the joining or even cancelled the same by stating company restructuring and other reasons. With this the college placement units are now under the scanner as they do not allow student to appear for an interview once they are selected with a particular company, leaving students in lurch for second option. .

Flipkart, L&T Infotech are not the only companies to defer the joining dates of students but many companies have followed the same route are HCL Technologies, Infosys, Roadrunnr, CarDekho, InMobi etc.


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