Exposed: New/Baby IIMs Placement Scam ⚠️

Summary

This video provides an eye-opening reality check on the often misleading placement statistics and inflated figures of 'baby' IIMs (Indian Institutes of Management). The speaker shares insights on how schools manipulate numbers through opt-outs and false claims, warning prospective students about the significant financial costs (18-24 lakhs in fees) and the actual in-hand salary after graduation. With a focus on transparency and caution, the speaker urges aspirants to critically assess data, question placement reports, and consider the long-term financial and career impacts before making a decision to enroll in these institutions.

Takeaways

• 🧠 Baby and new IIM placement headlines often look glamorous, but the real outcomes can be very different once you analyze hidden data like opt-outs, denominators, and salary composition.
• 📊 Reported placement percentages can be misleading because many institutes exclude opt-outs or non-registered students from the denominator, inflating the final placement rate.
• 💰 Gross CTC figures include bonuses, ESOPs, and one-time components, meaning actual first-year in-hand salary is usually much lower than headline numbers suggest.
• 🎭 Short-term projects, unpaid stints, or faculty assignments are sometimes labeled as internships or industry exposure, even though their real career impact is limited.
• 🏦 Baby IIM program fees typically range between ₹18–24 lakhs, often requiring large education loans that can severely pressure cash flow after graduation.
• 📉 Median salaries at baby IIMs usually fall in the 13–17 LPA range, which is significantly lower than top IIM averages despite occasional high outlier packages.
• 🔍 Many campuses do not fully follow or publish audited IPRA-style placement reports, making transparency and cross-campus comparison difficult.
• 🧮 Students must evaluate ROI realistically by factoring in loan EMI, interest, opportunity cost, and city living expenses instead of relying on placement posters.
• 🌱 Structural challenges at baby IIMs include smaller alumni networks, fewer repeat recruiters, weaker PPO pipelines, and developing industry credibility.
• ⚠️ Smaller campuses face higher volatility: if recruiter performance dips one year, companies may skip hiring the next, increasing placement risk.
• 🔗 LinkedIn highlights show only success stories; real placement struggles are often invisible unless candidates directly verify outcomes with alumni and seniors.
• 🎯 Highly selective roles like consulting, product management, and investment banking have very limited seats at baby IIMs, making probability management crucial.
• 🛑 Joining a baby IIM purely for the brand name without role fit, financial backup, or risk tolerance can lead to regret and long-term stress.
• 🛠️ For those already admitted, damage control includes expense discipline, side gigs, early networking, skill-building, and portfolio projects from day one.
• 📢 Collective student pressure and demand for raw, transparent placement data can push institutions toward more honest and accountable reporting.

Q & A

What is the core issue the speaker addresses in the video?

The speaker discusses the discrepancies between the glossy marketing materials and the actual reality of placements at tier-2 IIMs, focusing on the inflated placement statistics, misrepresented salary packages, and hidden operational realities.

What are the three key factors that manipulate placement numbers at baby IIMs?

1. Opt-outs: Some students are removed from the denominator in placement statistics, which makes the placement rate look better than it actually is. 2. CTC Composition: Placement packages often include bonuses, relocation allowances, and stock options, inflating the numbers presented. 3. Misclassification: Short-term projects or internships are sometimes classified as industry exposure, giving a misleading impression of the career outcomes.

Why should prospective students question the placement data provided by IIMs?

Prospective students should verify the authenticity of the placement data, as it can often be manipulated to present a more glamorous picture. They are advised to look at the fine print, such as batch size, opt-out numbers, and the breakdown of CTC, rather than just relying on headline figures.

How can a student assess whether an IIM's placement report is genuine?

Students should check six key details in placement reports: 1. Batch size 2. Registered students vs. total students 3. Opt-outs and their reasons 4. Median CTC, not just average CTC 5. Quartile and function-wise split data 6. The list of recruiters and their consistency in hiring.

What financial risks are involved in joining a baby IIM?

The high cost of IIM fees (ranging from ₹18-24 lakh), combined with loans and monthly EMIs, can lead to significant financial stress. Additionally, students often receive lower initial salary packages than expected, which can further exacerbate the financial burden.

What is the speaker's perspective on the actual return on investment (ROI) of baby IIMs?

The ROI is often not as high as advertised, especially for students from lower-ranked IIMs. The speaker suggests calculating a realistic ROI by considering not only salary but also loan repayment, opportunity costs, and the overall financial and mental strain over three to five years.

What advice does the speaker give to students considering a baby IIM?

The speaker advises students to carefully assess the financial and career risks involved before deciding. They should avoid being swayed by flashy marketing materials and instead verify the data, question placement officers, and consider alternative paths if necessary.

What role does alumni and network connections play in placement outcomes?

Alumni networks and industry connections are crucial for securing good placements. Baby IIMs often have smaller and less developed alumni networks, which can limit students' access to valuable referrals and opportunities.

How does the speaker recommend verifying placement data beyond the official reports?

The speaker suggests searching LinkedIn profiles of random alumni, messaging seniors or alumni for honest feedback, and comparing reported placement data with real stories from former students. This helps identify discrepancies between the idealized marketing and actual experiences.

What is the implication of the 'opt-out' phenomenon on placement statistics?

The 'opt-out' phenomenon means that some students who do not secure jobs are excluded from placement data, thus artificially inflating the placement statistics. This practice can mislead prospective students into believing that placements are more successful than they really are.