"MBA Back in Business"

Unlike historically, when MBA applications trend countercyclical to economic conditions, this year, data collected by Graduate Management Admission Council (GMAC) suggests a significant change from previous post-recession patterns. Even as the global economy shows signs of recovery, applications to MBA programmes are rising after a slump of three years. According to the 2012 Application Trends Survey, 51 per cent of graduate business and management programmes surveyed confirmed receiving more applications than last year. Though the growth is displayed in applications across a variety of programme types, including part-time, online as well as specialised master’s degrees, it has majorly been fuelled by application gains among online and distance courses.

Region-wise, programmes in Asia-Pacific and Central Asia reported the strongest growth in volumes for full-time MBA programmes. Ashish Bhardwaj, regional director, South Asia, GMAC, elaborates, “Looking at different regions of the world, 32 per cent of full-time two-year MBA programmes in the US reported application increases, 37 per cent in Europe reported application increases, 80 per cent of all MBA programmes in China reported application increases and 83 per cent of all MBA programmes in India reported application increases. Clearly, the relatively stronger economic growth in India and China, the two most significant markets in Asia Pacific, builds a strong case for investing in management education.”

He adds, “Demand for MBA programmes in India is also driven by the financial, personal and professional development the degree offers. These multidimensional advantages were reported by Indian citizens in a separate survey by GMAC, the 2012 Alumni Perspectives Survey where 92 per cent of Indian alumni agreed their graduate management degree is personally rewarding and 88 per cent said their degree is professionally rewarding.”

This upswing in demand for MBA among Indians is witnessed across regions as worldwide Indians account for the greatest number of foreign applicants for 43 per cent of MBA programmes. Across Asia, 34 per cent of MBA programmes indicated that Indian citizens accounted for their greatest number of foreign applications. For Europe and US, this number stands at 59 per cent and 44 per cent respectively.

Another point to be noted is apart from showing the strongest growth in overall increase in applications Asia also reported the greatest growth in female application volume for fulltime one-year MBA programmes at 77 per cent. This compared with 32 per cent in Europe and 47 per cent in the United States. Says Bhardwaj, “In terms of women candidates, 73 per cent of management programmes in India surveyed reported more applications from women candidates than last year. While it is difficult to clearly pinpoint the relative contribution of the outreach efforts made by top schools in attracting women candidates and the 'market effect', what is evident is that schools and corporate recruiters are both working towards greater gender diversity in the management pool and women candidates in greater numbers are seeing the value in investing in management education.”

The survey also reveals special efforts made by programmes to recruit entrepreneurs (16 per cent), pre-experience candidates (13 per cent), and members of the LGBT community (9 per cent). The annual survey also indicates that specialised master’s programmes in management, finance, and accounting continue to show robust growth.

744 programmes, including 527 MBA programmes, 24 business doctoral programmes (PhD/ DBA) and 193 specialised master’s programmes, from 359 B-schools in 46 countries participated in the survey this year.

Source – Google / Education

"India: A Hub For Management Studies"

A recent GMAT report puts India on the global map as a fast growing hub for management education.

India, having created a niche for itself in IT education, is now the go to place for a substantial talent pool in the information technology sector. This trend might now be challenged as more and more management aspirants are choosing India as their preferred study destination.

As mores students opt for specialized management programmes, the Indian business studies sector has witnessed a drastic growth over the last five years. According to the recently published 2011 World Geographic Trend Report for Graduate Management Admission Test (GMAT) examinees, not only has there been a steady rise in the number of non-US citizens taking the GMAT exam, but Indian students have dominated this trend.

Even amongst Central and South Asian citizens, the report points out, Indians represented the largest citizenship group with the highest number of score reports sent per exam in 2011, accounting for 91 per cent of all exams taken for the year.

However, what is more remarkable to observe is that a multitude of these students are choosing India as their preferred study destination. The report states that, a large drop has been observed in the proportion of scores sent by Central and South Asian citizens to programmes in the United States and much of this shift is explained by increased interest among regional examinees to study in India, the United Kingdom, and Singapore.

The report also observes that in most cases, prospective students are increasingly interested in domestic and regional opportunities. And with Indian student dominating test numbers, it is obvious that Indian B-schools can expect more takers in the coming years.

Prime Motivators
Lower costs of education in India, could be credited as a strong influence for most Indian students who chose to study in India. Not just in terms of tuition fees, but the cost of living in one’s own country can prove to be quite economical. “Studying in India is affordable and also facilitates a curriculum that lays emphasis on practical as well as theoretical aspects of management education,” claims Ankita Sen, a recent graduate from Durgadevi Saraf Institute of Management Studies. She elaborates, “Although studying abroad may give you the global exposure, an Indian education prepares you for the rigours of industry.”

However, experts suggest that higher employment opportunities post the course is also a factor that plays an important role while choosing a study destination. “Most Indian management schools have a well structured campus placement programme with almost 100 per cent employment for all students. And jobs are, after all, an important reason for students opting for an MBA,” asserts Pratibha Jain, education counsellor specialising in studying abroad.

Flexible admissions criteria also boost the popularity of Indian management schools, “Institutes abroad often require you to have at least three to four years of experience. So for a fresher, Indian B-schools can be a viable option,” adds Sen.

Needless to say, of course, that with rising global competition, the quality of education in India has also risen optimally. Jain explains, “Reputed management programmes in India are delivering excellent quality by engaging highly qualified faculty and guest speakers from the industry. The curriculum, teaching material, case-study approach, and overall pedagogy reflect international practices. This, together with low cost of education and living, good placement and familiar environment, makes Indian B-schools very popular in Asia.”

In conclusion, it is the figures that stand as evidence to the fact that India is at the nucleus of an increasingly global sector of management education.

Source – Education Research

"Engineering" – In demand

In an era of choices, engineering still dominates as a favoured discipline. There are 3393 engineering colleges in India with a capacity of 14.85 lakh seats across 36 courses approved by the All India Council of Technical Education (AICTE). Of the total number of colleges, 65% are in the south and 35% in the north. 

 
With the government adding new Indian Institutes of Technology (IIT) and National Institutes of Technology (NIT) to the existing list in tier II cities, and with the birth of more private institutes, are we witnessing the emergence of newer centres of engineering excellence in cities such as Indore, Jodhpur, Jaipur and Bhopal? Also, with newer streams like biomedical engineering, bioinformatics and environmental engineering being offered, are these unconventional combinations gaining in popularity?

RK Shevgaonkar, director, IIT Delhi, responds: “Actually, there are not too many new hubs in engineering education. When you look at non-IIT colleges, there are mainly cities like Bangalore, Pune, Mathura and Ahmedabad, which have clusters of engineering colleges. The situation is driven by demand and supply. These are IT hubs and, therefore, have many engineering colleges.” As for engineering courses, he says, “Courses like telecom and computer science have many takers. There are students who are inclined towards and opt for bio-informatics, biotechnology and bio-medical, but the numbers are not large.” Besides, he adds, students join traditional engineering courses at the graduate level and then those who are interested in bio-informatics or biotechnology or biomedical engineering opt for it at the MTech-level, where their engineering background comes of use. Shevgaonkar further says that students opt for environmental engineering but “it’s not top priority” as placements are better in other streams. 

S Sadagopan, director, International Institute of Information Technology, Bangalore, opines, “There was a time when the south had one-third the population and two thirds the number of engineering colleges in India. The skewed distribution is changing a bit with few colleges coming up in north India as well. However, good students still flock to the south.”

According to him, the last 50 years belonged to information technology and the next 50 years will belong to biotechnology. However, biotechnology does not yet have the scale and demand of IT. “Biotechnology needs infrastructure, facilities and deep knowledge. The wealth creation benefits are more indirect — new drugs, new medicines, new crops, preservation of food, and so on. On the other hand, IT translated business processes into a large number of jobs, less specialised, which required bright students with a couple of years of work experience,” adds Sadagopan.

Though the south remains the hub of engineering even today, SS Mantha, chairman, AICTE, feels it may be getting saturated. “There are colleges coming up in states like Uttar Pradesh, Rajasthan and Madhya Pradesh. While Bihar, West Bengal and the Northeast have few engineering colleges, and, hence, there is a scope for growth.” He also points out that in a new trend students are opting for civil and mechanical, while telecom and electrical/electronics engineering continue to be popular choices.

Source – Educationtimes.

Young Indians Throng The Web (Internet)  For Education Searches

Considering the power of internet GLA University is planning an aggressive digital campaign for its presence on all available medium. University is sure that it can create a brand recognition to the users and can help students residing in tier 2 and tier 3 cities in choosing there career decisions.

With over half of the Indian internet population in the age bracket of 18-35, India has raced to the number two spot globally in terms of absolute volume of education related search queries on Google. This was recently revealed in a study titled ‘Students on the web’ compiled by Google India. The study was compiled by combining Google search query patterns and an offline research conducted by TNS Australia on behalf of Google India. The study revealed that over 60% Indian students, who have access to internet, use it as their first source to research for information related to educational courses and institutes.

Student behavior for education research is changing in a digitally powered world.  Talking about the offline and online drivers of change, Rajan Anandan, vice president and managing director of Google India, says, “Students are increasingly using the internet as the first source of information to begin any academic research. This is largely  because the web offers easy access to high quality and relevant information that often combines with user reviews and forums.  While our study took only the top seven cities in the country into account, we take cognisance of the fact that in general over 35% of the internet traffic comes from smaller towns which have population less than 10 lakh. Students in those cities do not have access to high quality counsellors or institutes and hence resort to the internet for authentic information.”

India comes second only to the US in terms of web-based education inquiries and research. So is it because of the sheer numbers of our population? “With just 10% of internet penetration, India already commands the third largest internet user base in the world after China and the US.  This coupled with the fact that over 50% of our population is in the age group of 18-35 and is looking to study further - education queries have been continuously exploding on Google. It won’t be surprising if we overtake the US in the near future. So yes, a huge base of young Indians on the internet is definitely a big factor,” answers Anandan. While making decisions in terms of course of study one cannot afford to go wrong. Information available on Google needs to be validated by offline sources of authority. Google, has to play a significant role in this critical aspect. Agreeing to this fact Anandan says, “As an organisation Google does endorse this view and this is precisely why during the survey we asked students if they trust the information available on the internet. We found that over 69% students do trust the information as they can read the user’s reviews.” He continues, “However, as a search engine we only play a role in helping people find the information they’re looking for. When it comes to Google search we don’t curate the content on the internet. We have another initiative on YouTube - called YouTube EDU - which provides access to high quality content from universities across the globe - infact the NPTEL channel which hosts videos of lectures from all IITs is one of the most watched channels on YouTube - and we are actively working with educational content creators in India to bring more of education content on board.”

Talking about future trends in the domain of web-enabled education research, Anandan says, “What will be interesting to see is how quickly the institutes realize this growing trend and become more digitally savvy. The mobile space shall be a big driver of this research process as students are increasingly using their mobile phones to get online. However, none of the institutes have mobile friendly websites.”

Considering the power of internet GLA University is planning a aggressive digital campaign for its presence on all available medium. University is sure that it can create value to the users and can benefit students residing in tier 2 and tier 3 cities.

Source – Google & HT Media

Bank on this – MBA / Engineering admissions

While banks are ready to finance higher studies, students and parents should study the terms and conditions carefully, says Irene Saha

Soumi Das gave up a lucrative job to pursue an MBA. She is enrolled in a dual MBA programme at Purdue University in the US. Her dreams wouldn’t have materialised without a scholarship. But, not everybody is lucky.

A professional course costs anything between Rs 4 and 12 lakh, which may weigh heavy on a middle-class family. Expenses increase manifold for a course abroad.

While both private and public banks offer loans to students, public banks usually score over private ones as there is no hidden cost. Santosh Kumar, all set to go to Ireland for a Master’s in computers and communication systems, has applied for a loan of Rs 7.5 lakh from the State Bank of Mysore.

He points out, “Though there are too many procedures and it takes a little longer, nationalised banks are reliable. They deliver what they promise. They do not ask for property as security for loans up to Rs 7.5 lakh. They do not charge unnecessary compound interest. They give you an option to settle the amount anytime. I had taken a loan from them for my undergraduation, which I had paid off after I started working,” says Kumar. He has also got a scholarship of Rs 5 lakh.

Course Criteria
S Das, manager, Central Bank of India, says: “The bank provides education loans starting from +2 stages to Master’s and PhD courses including technical/professional courses both in India and abroad.” National banks give loans for courses approved by regulatory authorities i.e. AICTE, NAAC and state/central universities. Distance learning approved by UGC-AICTE-DEC Joint Council is also recognised. Loans are also given for postgraduate and PhD programmes abroad.

What You Need

·       Students must have a consistent and good academic record

·        “Credentials of the institution like affiliation, approval, etc, are important because of brand value standardization and students’ employment opportunity,” says a senior official of Axis bank

·       Parents’ source of income

Loan Amount

·       Starting from Rs 50,000, for studies in India, it goes up to Rs 10 lakh

·       For studies abroad, the upper limit is Rs 20 lakh

Shares Manish Singh, financial consultant officer, Credila Financial Services (HDFC bank’s education loan agency): “We have approved even a crore.”

Kamalika Guha, working at JWT Kolkata, who took Rs 4 lakh from PNB for her MBA at International School of Business and Media, Kolkata, says, “It was convenient as my institute had a tie-up with the bank.”

Girl students, SC/ ST candidates as well as those making it to AIIMS, IITs and IIMs, in some banks, enjoy an additional concession of 0.5%.

QUICK FACTS

·       Identity/ address proof for both borrower and guarantor

·       Education certificates, including mark sheets

·       Proof of admission or offer for the same

·       Year/item wise estimates from the educational institute

·       Proof of income - salary certificate/ IT returns/ assessment orders (of parents/guarantors as applicable)

·       Details of collateral securities. The clause differs from bank to bank. “I did not take any student loan, because I do have a little waiver for my MS and banks require a mortgage/ security for loans over 7.5 lakh. I was not comfortable handing over property papers,” says Bedashrita Chattoraj, TU Delft.

Margin money
Margin money is a kind of test on the bank’s side to see that you also bring in some money.

Moratorium
Course period +2 years after completion of course or six months after getting a job, whichever is earlier. Many banks offer students a 1% waiver for full tenure of the loan, if the entire interest is paid during the moratorium or course duration.

 

Repayment
The loan is to be repaid in 5-7 years after moratorium period. In case a student fails to complete the course within the stipulated time, the time may be extended to a maximum of 12 years (including course period).

Other Side
Banks in India, both nationalized and private, charge high interest rates. “If you can avail of a guarantor who is a permanent resident of the US then try for loans from banks in the US like Citibank, JP Morgan Chase, Sallie Mae as interest rates are about 4.5% as against 12% in India. Moreover, tenor of repayment is 15 years,” advises Shekhar Niyogi, education consultant..

Source—Education Times.

“Overall demand is far more than the supply of MBAs cans be”

says VK Menon, senior director – careers, admissions and financial aid, ISB as he speaks with Ruchi Chopda about the future of management education in India

Financial slowdowns usually lead to a rise in MBA applications. What do you foresee for management education in terms of applications amidst the current economic scenario?

With about 3,000 schools operating in the country, the number of B-schools has gone up tremendously in the past few years. Thus, there will be a drop amongst the lower order of B-schools. MBA applications were dipping in 2010-11 but everywhere the numbers have started going up in 11-12 and continue to do so albeit not very strongly.

Has the sheen of an MBA degree worn off?

We can’t paint all markets with the same brush. Europe is clouded by the actual recessionary environment. If a market is facing a tremendous recession and people are losing jobs, then those with secure jobs will think twice about moving. Having said that, people who have lost jobs will actually take this as an opportunity to re-tool and re-skill. So these two numbers will kind of even out with maybe a small drop in scenario. However, in India, whatever the growth rate it’s a very macro scenario. India is a very large market for MBAs. And the overall demand is far more than the supply of MBAs can be. So the Indian demand is very different from the demand in a smaller market like Europe. So here even if there is a down sentiment in terms of the economy, the premium schools will keep doing better but the pressure will come on the not-so-premium schools because the student applying to these schools will wonder whether he/she should continue with my job or take on a degree.

Considering the current economic crunch, would it be a wise choice for working professionals to pursue the management degree now?

An MBA facilitates two aspects of one’s career – enabling a career leap and a career change. For instance, if a person from a technology stream does an MBA and goes back to technology, then the career for this particular person takes a career leap. He will get into a much higher slot in his own company or another company he joins in the same field. Secondly, if this technology student, enrolling for an MBA, wants to move into business development and marketing then an MBA facilitates that as well. So, an MBA sequence can facilitate a career change. A career leap or career change are the drivers for enrolment into an MBA course. In India, there will always be people who are stagnated and want to go up in terms of career leap or people who are tired of their jobs and want a change of role. The demand of a management degree will be determined by both these factors.

What are the key factors students should consider before applying for a management programme?

This can be looked at in terms of pre-MBA, during MBA and post MBA. At the pre MBA scenario, aspirants aspire to lead in business which means that they need to have a good breadth that is an overall perspective of business. Many students do not read much. They are fairly knowledgeable on their own narrow specialisation but they are very weak when it comes to the breadth of knowledge which includes general knowledge and knowledge of industry. An aspiring MBA graduate needs to broaden his horizons by increasing his business as well as general knowledge so that the opportunities for him post MBA goes up. Once a student enters an MBA programme, he can choose between options like marketing, finance, operations, technology, strategies consultancy, etc. Once you make the choice, during placements no company will give you a job only because you are from a particular B-School. So, if a graduate is looking at entering marketing, he will have to prove his potential employer that he is a good marketing guy. So you need to put in a more than the normal effort, that is done during an MBA, to ensure that you make a change favourably. Thirdly, thanks to the congested marketplace students really “fight it out” post graduation and feel that their first job is a critical thing. But they have to remember it is only their first job. After your MBA, you should get a job and a role in the industry you like and not decide your first job according to the pay. You take a job that helps you plan a long-term career; chances are you will do well in your career rather than in your first job.

What should students look at before deciding on which B-School to pursue their management degree from?

Unfortunately, the only parameter that is strongly considered by students enrolling for a B-School is placements. But in a B-School, the key components are the long-term growth and leadership of the individual and what the person is going to do five to ten years down the line. For that the learning and teaching environment of the school is very important. What kind of teaching is happening, what kind of subjects are being taught, how are the subjects being taught, who are the faculty. These are not available data. An MBA needs to be an informed decision. So students must reach out to alumni of B-Schools. They need to know the kind of learning and teaching that happens and the kind of faculty and peers they will be interacting with. MBA is a very peer driven and fluid programme. So students need to assess the factors mentioned above apart from the placement record of an institute.

An increasing number of students considering an MBA degree are now also looking at a master’s degree as a substitute. Could you elaborate on the difference between the two programmes and also which of the two is a better option?

There is globally a sharp increase in shorter programmes. A master’s degree normally comes under a short course category which is normally a one-year category. However, even short-term one-year MBA programmes are on the rise now. In such a situation, for students with say four years of experience considering the two-year and a one-year programme, the second year becomes an opportunity cost because if you do a one-year programme you graduate in a year and the second year you are earning. If you take a look at the Indian environment, the average years of experience of MBA applicants is growing. And the more the experience the more is the opportunity cost. If you are a fresher, you can extend your study period by two years and it’s alright. But if you have four years experience, that is difficult cause your costs are that much higher. So these are the trends in the market. And of course the master’s degree has got a particular niche in industry as well so that contributes to its popularity.

In times of financial crisis like these, is it a better idea to pursue one’s MBA in India or abroad?

From a learning-teaching point of view premier B-Schools will have a similar environment. Each school may have a specific flavour but it will be very good. The problem for Indian students in a foreign programme arise once the laws of the land kick in. And if you look at work permits and visa regulations across the globe in a recessionary environment it is not easy. The person needs to make an assessment of which country he wants to study in and then take a call on whether he wants to work in that country or come back to India. If the student is looking to return to India, then going abroad and paying double the amount for a programme is a tough call to take. But if the person wants to work in the country in which he is doing his MBA, then the laws of the land have to be studied very carefully.

Any advice you’d like to share with our readers?

If a student is trying to get into management education, he has to assess the components that make up an entry sequence. Beyond building one’s academic quotient, the student needs to develop interests across analytical platforms that can sharpen his intelligence like chess or puzzles. That’s a very good training ground, because at the end of the day you are going to take a competitive examination and in that the analytical quotient becomes very important. The second is to develop your leadership quotient by doing things apart from academics like leading a charity drive, mountaineering, playing the sitar, etc. All these are indicators that you do not just excel in one domain but have multi-domain interests. So you have to develop at least one or as many skills you want in alternate domains. Along with the leadership characteristics, you have to add the breadth of knowledge. You cannot be constrained by the basic knowledge of the subject or the work you are doing but you need to look at the wider range of knowledge. These are things that can be done only over a period of time.

Source- TOI and Education Times