Why E-Commerce Sector Attracts B-School, Engineering Graduates in India

Nidhi Bahl updated on : 02 Dec 2016

Apart from higher annual package, E-Commerce companies offer perks like work from home, flexible timings, etc.

E-Commerce companies, Annual Packages

Nearly 130 crore population of India is using technology and prefer purchasing online. Owing to this trend, there has been tremendous growth of E-Commerce sector in India with its revenue increasing 60 times between 2010-2015. Estimated to be $ 3 billion segment, E-Commerce companies like Flipkart and Snapdeal have attracted huge investments. Amazon is planning to invest $ 2 billion in next few years in India.

Now, all this is translating into higher annual packages for fresh Engineering and B-School graduates. A couple of years back 3 E-Commerce companies were offering greater than Rs. 20 lakh annual package. This number has now increased by four times. Apart from higher annual package, E-Commerce companies offer perks like work from home, flexible timings and many others. These packages are more than established sectors like FMCG, consulting, financial services and infrastructure. Even for established multinational companies like Texas Instruments, Qualcomm, Microsoft, Visa the annual package is around Rs. 18 lakh.

It is seen that majority of bright Engineering graduates get attracted towards high annual packages. Therefore, few years back global companies in IT and Finance Sector were the first choice and now their place is taken by E-Commerce sector. Fresh graduates from IITs, IIMs, NITs is the first choice of these E-Commerce companies. Then, they move to other established Engineering Colleges and B-Schools. It appears that bright students get attracted to higher annual packages and perks. However, with huge competition there is certain degree of uncertainty in this sector. But these bright graduates don’t mind taking risks these days. E-Commerce companies offer roles in sectors like software, operations, business analysis and marketing, which are liked by these fresh Engineering and B-School graduates.

Liking towards Entrepreneurship is also on the rise and the fresh graduates feel this experience will be valuable in the long run. However, considering the needs of the county, this trend is bit worrying.

India is dependent on imports when it comes to high-tech manufacturing and high- end software products. We have signed deals of thousands of crores of rupees for the purchase of airplanes, defense equipment, sub marines, bullet trains, etc. All the major and popular software products are developed in US. CAD-CAM products like Catia, Unigraphics, etc. are developed in Europe and US. Since independence no Indian scientist working in an Indian University has won Noble award and there is lack of quality research in India. China is much ahead than India in manufacturing and research. Indian manufacturing companies like L&T face shortage of bright talent. Due to the large pool of technical talent we have made significant achievements in technical sectors like space research and technology. However, the scale and speed will increase if bright talent works in this core sector.

Our late President Dr. APJ Abdul Kalam once said that the real contribution in the Industrial and Technology development is made by the graduates of tier 2 Engineering Colleges. Chairman Emeritus of L&T, Mr. Naik has also lamented the tendency of Engineers from premium technical institutes to migrate to non core and non technical sectors. It is time for decision makers in government and industry to ponder over how to make manufacturing and research sector attractive for fresh and bright Engineers of India. This is also essential for the success of ‘Make in India’.           


- Contributed by Dr. Milind Kulkarni, Professor & Group Director, ITM Group of Institutions

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