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Engineering Colleges may reduce number of seats
AdmissionNews Education

Engineering Colleges may reduce number of seats

Due to the current business lay-offs, low pay packets and H1B visa norm changes, IT companies are being gentle with the campus placements, suggesting engineering colleges to ponder on trimming down the number of seats in branches with lesser admissions.

According to a Placement Cell of an Engineering College in Chennai, in the recent years, non-IT companies are also being called by the colleges for campus placements as the number of IT companies visiting the campuses has reduced. The companies have stopped hiring students in bulk reducing it by15-20%. This year the placements have gone down by 30-40%. Brexit issues, automation and H-1B visa curbs are few of the responsible factors.

Utilization of artificial intelligence and cloud computing have challenged the business model of Indian IT companies. Concurrently, by rising least salary requirements, the United States is all set to seize the immigration of H1B visa holders. The H1B visa holders are mostly sent to the States by leading IT companies such as Tata Consultancy Services Ltd (TCS), Infosys Ltd and Wipro Ltd.

Sriram Padmanabhan, Director of Career Services, SRM University , claims that a total of 6,064 students were placed last year with technology companies. According to the Director, the college is looking forward to get in touch with the newer companies including IT, IT product and core engineering companies. The college has witnessed 50% more companies hiring their students as compared to last year. On reduction of engineering seats, he said that keeping the current market scenario in mind, the college authorities has polished up their strategies after a lot of discussions.

India has around 6,400 engineering colleges. Out of which some of the colleges are not able to deliver good Results which came under the lime light of the All India Council of Technical Education (AICTE) . Anil Sahasrabudhe, Chairman, AICTE, mentioned about a new clause according to which a college will be shut down if an engineering branch of that college  does not have more than 30% admission consecutively for five years. This rule will come into play from the next academic year.

TCS and Capgemini refused to make statement when asked about the reduction in hiring. The report revealed by Infosys says that the hiring numbers are in the same range as compared to previous years.

G Balasubramanian, Chief Placement Officer, Birla Institute of Technology (Pilani) University said that the institute is not reliant on the companies for hiring their students. He said that the number of software companies visiting the campus this year has dropped by 5%-6% as compared to last year.

In July 2016, the National Association of Software and Services Companies (NASSCOM), an industry lobby, had veiled about the depressing hiring attitude in the fiscal matters lately. The hiring activity in the year before last was around 2.20 lakh as new jobs were created in IT sector. Last year, about 2 lakh were added to the figure. R. Chandrashekhar, President, NASSCOM, said that this financial year, the figures will be on the lower side .

 One of the placement officials said on the scarcity of jobs in the IT sector that they have also advised students to look for jobs in other fields of engineering.

Rituparna Chakraborty, Co-founder and Executive Vice President, TeamLease, a Recruitment and Staffing company, said that the insecurity over the H1B visa issues, hiring has slowed down in IT in the past year. She also said that the IT companies may have to revamp their hiring procedure altogether. The students hired from India will definitely be at defeat and will be replaced by the local people in the US which will create an impact on the students of India.

Recently, three bills in quest of modification in the H-1B visa programme were listed in the US. One of the primary changes proposed include increasing the minimum salaries of H1B visa holders to $130,000, a stir that could influence many IT firms which use it to send thousands of professionals in the US each year.

Every year, the US Citizenship and Immigration Services (USCIS) issues around 85,000 H1B visas to immigrants. Out of which, most of them are taken up by Indian IT firms.

Although many Indian IT professionals are optimistic that the bills might not be passed as it will have an impact on the overall US market while others are prepared to take low wages and return back to India if the situation permits.

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