Tech Companies Extend Internships Amid Cautious Hiring Climate

Amid cautious hiring, internship becomes mandatory and extended

IT companies are increasingly insisting that freshers undergo mandatory internships with them for an extended period before they make the final offers, delaying the hiring process that has just started seeing some activity after a washout year. Placement officers in several tier-1 and -2 engineering colleges that ET spoke to said internships, which used to be six months, have now been extended by another four-six months. "Employers are increasingly seeking fresh graduates with internship experience in AI/ML, data roles, model development and analytics," said Munira Loliwala, vice president, strategy and growth, at staffing services firm TeamLease Digital. "The shortage of skilled entry-level talent has led companies to offer extended internships, enhancing the likelihood of hiring through management trainee programs later." It's a new trend that has emerged this year, said KS Shridhar, dean - placement and training, at Bengaluru-based PES University. "Normally, after the last semester when students pursue their internship, they get their offer letters. But this year, many companies have extended their internship period to a couple of more months." Technology services firms are increasingly demanding internships, while the global capability centres (GCCs) of multinationals are making it compulsory, said Samuel Rajkumar V, director of career development centre at Vellore Institute of Technology. "Either it is internship-cum-placements or placements and internship of six months. Some are also asking for one-year internships," he said. AK Choudhary, the professor in-charge of training and placement at National Institute of Technology-Jamshedpur, said most companies were looking for an internship of at least one semester. The NIT allows students to undergo internship for the last semester provided the companies provide them pre-placement offers or full-time employment, he said. It's not just longer internships. There is also a reduction in the pay packages on offer, according to a placement officer at National Institute of Engineering in Mysuru. Companies have resumed hiring but cautiously, he said. "Internship duration for students in many cases got extended from six to 12 months. While the basic salary is the same, CTC (cost to company) reduced from Rs 10 lakh to Rs 8.5 lakh, because of elimination of relocation bonus and other perks." But many also see experience that the freshers gain from internship as crucial. It provides hands-on experience with real-world engineering problems and tools and bridges the gap between theoretical knowledge and practical application. "This helps in building both soft skills, technical skills, good networking opportunities, career exploration and industry insights," said Savitha Rani M, training and placement officer at Bengaluru's Ramaiah Institute of Technology. Dipti Lodha, director-corporate relations at Jaipur-headquartered Poornima group that runs three engineering colleges and one university, said IT companies were consistently facing an issue that despite students scoring well academically, they were not industry-ready. So, they onboard students as interns in their final year for 6-9 months. "These internships are in most cases the equivalent of a final placement because over 95% of the students are absorbed afterwards," she said. According to Merin Stephen, placement officer at Reva University, many students are not getting placed after internship, and the conversion is based on performance and requirement. Shridhar of PES University said the stipend offered during internships this year was in the range of Rs 15,000 to Rs 1.5 lakh. "Though we started a bit slow, we were able to get some placements in the later part of the year and place 1,000+ students," said Shridhar. "Placements for the 2024 batch started last August and are still going on. Around 250-300 students remain, but some of them may have decided to pursue higher studies." A recent TeamLease report commenting about the range in freshers' salary across GCCs, non-tech sector and IT sector, said: "GCCs offer premium salaries for fresher tech job roles due to their adherence to global standards, the demand for specialised technical skills, and intense competition. In contrast, non-tech sectors provide lower salaries, influenced by a perception that fresher tech talent lacks industry-specific experience or practical skills relevant to their needs. Meanwhile, the IT sector offers salaries that fall between these two extremes, neither too high nor too low." --Additional reporting by Sreeradha Basu

Amid cautious hiring, internship becomes mandatory and extended

It's a new trend that has emerged this year, said KS Shridhar, dean - placement and training, at Bengaluru-based PES University. "Normally, after the last semester when students pursue their internship, they get their offer letters. But this year, many companies have extended their internship period to a couple of more months."IT companies are increasingly insisting that freshers undergo mandatory internships with them for an extended period before they make the final offers, delaying the hiring process that has just started seeing some activity after a washout year. Placement officers in several tier-1 and -2 engineering colleges that ET spoke to said internships, which used to be six months, have now been extended by another four-six months. "Employers are increasingly seeking fresh graduates with internship experience in AI/ML, data roles, model development and analytics," said Munira Loliwala, vice president, strategy and growth, at staffing services firm TeamLease Digital. "The shortage of skilled entry-level talent has led companies to offer extended internships, enhancing the likelihood of hiring through management trainee programs later." It's a new trend that has emerged this year, said KS Shridhar, dean - placement and training, at Bengaluru-based PES University. "Normally, after the last semester when students pursue their internship, they get their offer letters. But this year, many companies have extended their internship period to a couple of more months." Technology services firms are increasingly demanding internships, while the global capability centres (GCCs) of multinationals are making it compulsory, said Samuel Rajkumar V, director of career development centre at Vellore Institute of Technology. "Either it is internship-cum-placements or placements and internship of six months. Some are also asking for one-year internships," he said. AK Choudhary, the professor in-charge of training and placement at National Institute of Technology-Jamshedpur, said most companies were looking for an internship of at least one semester. The NIT allows students to undergo internship for the last semester provided the companies provide them pre-placement offers or full-time employment, he said. It's not just longer internships. There is also a reduction in the pay packages on offer, according to a placement officer at National Institute of Engineering in Mysuru. Companies have resumed hiring but cautiously, he said. "Internship duration for students in many cases got extended from six to 12 months. While the basic salary is the same, CTC (cost to company) reduced from Rs 10 lakh to Rs 8.5 lakh, because of elimination of relocation bonus and other perks." But many also see experience that the freshers gain from internship as crucial. It provides hands-on experience with real-world engineering problems and tools and bridges the gap between theoretical knowledge and practical application. "This helps in building both soft skills, technical skills, good networking opportunities, career exploration and industry insights," said Savitha Rani M, training and placement officer at Bengaluru's Ramaiah Institute of Technology. Dipti Lodha, director-corporate relations at Jaipur-headquartered Poornima group that runs three engineering colleges and one university, said IT companies were consistently facing an issue that despite students scoring well academically, they were not industry-ready. So, they onboard students as interns in their final year for 6-9 months. "These internships are in most cases the equivalent of a final placement because over 95% of the students are absorbed afterwards," she said. According to Merin Stephen, placement officer at Reva University, many students are not getting placed after internship, and the conversion is based on performance and requirement. Shridhar of PES University said the stipend offered during internships this year was in the range of Rs 15,000 to Rs 1.5 lakh. "Though we started a bit slow, we were able to get some placements in the later part of the year and place 1,000+ students," said Shridhar. "Placements for the 2024 batch started last August and are still going on. Around 250-300 students remain, but some of them may have decided to pursue higher studies." A recent TeamLease report commenting about the range in freshers' salary across GCCs, non-tech sector and IT sector, said: "GCCs offer premium salaries for fresher tech job roles due to their adherence to global standards, the demand for specialised technical skills, and intense competition. In contrast, non-tech sectors provide lower salaries, influenced by a perception that fresher tech talent lacks industry-specific experience or practical skills relevant to their needs. Meanwhile, the IT sector offers salaries that fall between these two extremes, neither too high nor too low." --Additional reporting by Sreeradha Basu