IIT Madras has incubated a startup to help the founders of other startups in the early stages of their ventures.
Source: Study International
Business schools in India are set for a revamp of their curriculum, which will see the introduction of a new course on Indian ethics and concepts.
Our Canada West Chapter’s signature event takes place on Sept. 30 in Vancouver, BC at the Fairmont Waterfront hotel.
Business schools in Canada have begun to revamp their career preparation services for students in the wake of a tougher job market, reports the Globe and Mail. The Queen’s University School of Business has added more of these services to its redesigned one-year MBA program. The school also recently changed the start date of its MBA program to January from May to create post-program opportunities for paid-internship work experience. Similarly, University of British Columbia’s Sauder School of Business has its 16-month MBA program students prepare for 2 recruitment seasons – one for a mandatory summer internship and the other for full-time employment after graduation. Sauder also plans to launch a new “e-portfolio” program for its 110 MBA students to market themselves using social media.
TCS Insights: Due to a rapidly changing job market, Canadian business schools are beginning to adapt. To better prepare students, institutions are making internships a requirement so graduates will not only earn a MBA but gain valuable work experience before they seek full-time employment.
The economic slowdown has hit smaller management schools in India big time as campus hiring drops sharply, forcing many of them to shut shop. “Business schools are closing down due to poor quality of education, lack of right kind of faculty and dearth of proper infrastructure to run them,” said N K Dhooper Professor emeritus, IMT Centre for Distance Learning, Ghaziabad.
It’s a piquant situation for those managing or running B-schools in India. And there are over 3,500 of them. A majority of these schools had come up over the past decade or so on the back of the economic reforms that ushered in large-scale foreign direct investment into manufacturing and other sectors. These schools came up to cash in on the increasing demand for management graduates. But the demand has been sluggish in the recent past, due to the economic slowdown.
On one hand, there is a severe shortage of trained faculty, which varied industry estimates place at a high 50 per cent of the actual requirement. As a result, several of these schools are opting to fly down experienced faculty from developed markets to conduct core classes as well as short-term courses. Even some of the top-notch B-schools in the country seem to be facing this problem, albeit of a lower degree.
On the other hand, a number of B-schools have either been closed down or are facing closure due to their inability to attract sufficient numbers of students to get enrolled year after year.
While many B-schools have been closed down due to lack of basic infrastructure, a few others had to beat a retreat due to their inability to place their students with leading companies.
With the economic slowdown hitting corporate balance sheets across the board, a large number of B-schools other than the top 15-20 institutions like the IIMs are going through hard times on account of a sharp 40-50 per cent drop in campus hiring and a similar decline in the number of students opting for fresh admissions, said a recent study conducted by the Associated Chambers of Commerce and Industry (Assocham).
Campus recruitments have fallen drastically. As a result, a large number of B-schools are unable to attract students. About 190 B-schools were closed down in 2012 in major cities like Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow and Dehradun, among others.
Another 165 are struggling for survival, said the study.
The number of B-school seats for MBA programs in India grew almost fourfold from 95,000 in 2006-07 to 3,60,000 in 2011-12, resulting in a five-year compounded annual growth rate of 30 per cent. A lot of B-schools have either been closed or are facing closure due to their inability to attract sufficient numbers of students to get enrolled year after year. Apart from the IIMs and a handful of other top B-schools, it will be difficult for other business schools to get 100 per cent placements in the future. This capacity was built based on the projection of a 9-10 per cent economic growth. Unfortunately, job opportunities for MBAs have not grown in the same proportion during this period, thanks to the global financial crisis and the economic slowdown that followed.
“Business schools are closing down due to poor quality of education, lack of right kind of faculty and dearth of proper infrastructure to run them. Over the years, B-schools mushroomed minus the credentials and without verifying the potential for the right kind of students,” says N K Dhooper, professor emeritus & adviser at IMT Centre for Distance Learning, Ghaziabad.
Sankaran P Raghunathan, professor of international business and dean of The National Management School, Chennai, puts it in perspective. “B-schools are no different from businesses. The supply needs to be bought by the consumers for it to survive,” he says.
According to him, B-schools think they are making MBAs and students are the consumers. Whereas in reality, education is the product here and the industry, which recruits these management graduates, is the consumer. As a result, there is a mismatch between the expectations of the industry and the actual product being offered to the market.
The Assocham study said the global uncertainty affected placement patterns at B-schools. The number of placements has been fewer and average pay packages have been flat. Apart from the IIMs and a handful of other top B-schools, it will be difficult for other business schools to get 100 per cent placements in future.
B-schools have to improve infrastructure, train their faculty, work on industry linkages, spend money on research and knowledge creation and pay their faculty well in order to attract good talent, the study pointed out.
From the student’s point of view, the way one looks at an institution has changed in the present scenario. He is looking for a 1:1 match between the fee he pays for a course and the salary he is likely to get after the degree.
As a result, B-schools that charge low fees do not attract students, who think they will end up getting a lower salary. On the other hand, institutions that charge higher fees do draw students, but there are not enough jobs that offer high salaries.
“There is a complete mismatch in expectations among the three segments – B-schools, students and the industry. The expectations of each segment simply do not match that of the other,” says Sankaran.
A part of the blame also lies with the pathetic undergraduate education system. About 67 per cent of general graduates are not employable. Having wasted four years of their prime and finding themselves unemployable, they turn to MBA programmes. “But the B-schools find it difficult to make them learn in two years, especially after wasting four years. Hence, the input itself is a problem,” Sankaran points out.
Questions have also been raised as to whether the B-schools are doing a good job of imparting education and if they are delivering it in the right format?
People who run the undergraduate institutions also end up running MBA courses. As a result, the problem persists. “We as a country have failed to groom quality teachers over the past 25 years, because the system itself runs on approvals, and not on accreditations. As a result, anyone can teach anything in India. Thus, there is an input problem, process problem and hence an output problem,” Sankaran explains.
On its part, the industry needs to join hands with the B-schools to decide on what needs to be imparted to make these management graduates employable. The faculty problem has been there for several years, and it is only going to magnify over the next 10 years. In the US, people are trained to teach; India has failed to do this. Singapore focused on this area long before and it took 25 years for that country to establish itself as a leading player in the international education market. An estimated 44 million students study outside their home countries every year and industry estimates pegs the revenue potential of this industry at $44 trillion. “As a result of the country’s failure in establishing a proper system, we are now a leading importer of this service, instead of being an exporter,” Sankaran points out.
Education can be an economic engine, not only to meet our demand but also to take it to the overseas market, as it happened in the case of the IT industry, which today accounts for seven per cent of the country’s GDP and 30 per cent of exports. It should be noted that even the IT industry suffered for the initial two decades due to lethargy on the policy front. “Let us not do that mistake on the education front. The need of the hour is to invest on creating the right system,” says Sankaran.
According to Dhooper, when there is a shortage of really competent faculty, the recruitment of the right faculty becomes even more difficult for institutions. At the same time, it becomes very difficult to retain good talent. “In fact, recruiting faculty through references is a more reliable mode of recruitment; but finding such reference is not an easy task,” he feels. As for the newfound trend of flying down overseas faculty, Dhooper says this could at the most be an interim arrangement and not the end solution. Flying down professionals may be a temporary solution or maybe an add-on flavour to teaching.
“B-schools should look for industry experts having a taste for teaching on sabbatical or on a visiting basis, besides recruiting academicians from other B-schools or universities. They can also have arrangements for exchange of faculty to supplement or complement their pool of talent” says Dhooper.
NSB’s Sankaran is not so enthusiastic about using industry experts. “Institutions recruit people with industry experience in order to overcome shortage in faculty. But these people end up sharing only anecdotes, which do not really add much value,” he says.
Technology could be an option for B-schools to focus on in order to overcome faculty crunch, feels Dhooper. “Faculty shortage can be overcome by B-schools to a great extent by using technology and internet by having bipartite arrangements to help each other, wherever they can through exchange of faculty, without loss of time and without physical presence in the class through video conferencing,“ he says.
TCS Insights: This article highlights the growing gap between the top tier and the next level of academic institutes. It also highlights how Tier 2 institutes are not able to address student expectations such as quality education delivery and employment opportunities.
This presents an interesting opportunity for Canadian colleges to tap into those students who have not been successful in getting into the top Indian institutes due to limited intake. It also represents an opportunity for students as potential recruits for quality programs in Canada.
Source: Times of India
MUMBAI: With luxury companies setting up base in India, there is a growing demand for managers armed with specialized management degrees in luxury. Looking at the growth in career opportunities in luxury, leading business schools which offer management courses in luxury brand management – such as ESSEC in Paris and SDA Bocconi in Milan – are witnessing an increase in demand from markets like India.
The trend, said industry experts, is expected to grow further as luxury expands its scope in India. Looking at the potential, SDA Bocconi has started an Indian branch named MISB Bocconi in Mumbai to leverage its experience within Indian executives. Luxury, which covers a broad range of products and services such as fashion, food, arts, movies, cultural industry and hotels & tourism, is estimated to become a $15-billion industry in India by 2015.
“Indians with luxury business school degrees are sought after in India. This is because luxury is seen as a sector with a big opportunity over the next few years. It’s a noticeable trend that more Indian students are opting for MBA degrees in luxury because there is a growing demand for managers with such specialization,” said Tulika Tripathi, managing director, Michael Page, India, a specialist recruitment firm.
ESSEC business school was the first school to launch an MBA in international luxury brand management in partnership with LVMH and L’Oreal Luxe, specifically to recruit and train high-potential managers to develop their luxury business, particularly in Asia. The business school has assigned its top officials to frequently travel to Delhi and Mumbai to monitor the growth of the industry and interview prospective candidates.
“As the luxury industry grows in India, more career opportunities are becoming available. Since 2009, the programme has seen its graduates being hired by Genesis Luxury, Reliance Brands, Burberry, Gucci, Remy Cointreau, Richemont and L’Oreal Luxe. However, some Indian graduates have preferred to gain international exposure before returning home and have gone to work for companies like DFS in Hong Kong or Chalhoub in Dubai where there are multiple opportunities,” said Anthea Davis, director, corporate relations and career development, ESSEC.
At ESSEC, the MBA in international luxury brand management is a specialized programme that accommodates up to 40 students per year from 20 different nationalities. While there was only one Indian student in the programme in 2007, today there are seven.
Davis said the first recruitment needs initially came from Japan, China and Korea. Bbut in the last eight years, ESSEC has seen an increasing demand from Brazil, Russia, India and South-East Asia. The number of partner companies the programme works with and supplies talent to include luxury groups such as Richemont, Kering, Estee Lauder Group as well as single brands such as Burberry, Chanel and Zegna.
“With the luxury goods market being largely retail driven and now saturated in Europe, companies are looking to open stores in new locations and markets which are not yet developed. This generates job opportunities for graduates both in running retail operations and in the back office with an increasing number of subsidiaries being set up abroad. For example, Richemont recently opened a subsidiary in Delhi in October 2012 where one of the graduates has been hired as brand manager for Vacheron Constantin watches,” said Davis.
Bocconi, on the other hand, has an MBA class in partnership with Bulgari which was started in Rome last year. “Foreign students are increasing. In the last five years the Indian audience became the first in terms of enrolled students, getting to a percentage of 20% in MBA and executives classes,” said Stefano Caselli, vice-rector for international affairs, Universita’ Bocconi.
While there is a strong increase in demand for skilled Indian MBA graduates who are able to blend knowledge of the Indian market with an international background, Caselli said placements are going up as the Indian market is becoming more attractive and developed for luxury industry.
The London School of Business & Finance, however, has only recently introduced its luxury management programmes following good demand from all countries it operates in.
Source: Connect – Canada In India
Executive MBA students from Canada’s Richard Ivey School of Business (Western University) recently visited India to study business opportunities for Canadian companies. With a mission “to prepare leaders who think globally, act strategically and contribute to the communities in which they operate,” the International Business Trip to India enabled the students to gain an appreciation for what it takes to do business in India, to work with Indian managers and to compete with Indian companies. This experience enabled the participants to put into practice the themes of their third semester which include; “Crossing Borders”, “International Investments”, “Collaborative Strategies” and “Looking Ahead Globally.”
Source: PTI via Indian Economic Business News
Haryana has offered the services of doctors, drivers and trained manpower to Manitoba province of Canada. The offer was made by Chief Minister Bhupinder Singh Hooda during his meeting with Manitoba Premier Greg Selinger and members of his delegation, who called on him recently. Mr. Hooda said drivers of Haryana are well known for their skill and enterprise. Haryana has three government-run Driving Schools in Kaithal, Bahadurgarh and Rohtak. He said Indian doctors are also doing well in the US, the UK and other countries and asked the Canadian authorities to provide their syllabus to fill in the gap and train them as per Canadian requirements. Indian doctors going to Canada will not have to undertake further studies in Canada and it will thus save them a number of years. Hooda said Haryana being an educational hub also has a number of prestigious technical institutions, which are providing skilled training to youth. Their skills can further be upgraded as per the syllabus of Manitoba.
Source: Asia Pacific Business & Technology Report via Indian Economic Business News
Visiting Premier of Canada’s Manitoba Province, Greg Selinger congratulated Manitoban firms for growing their business with India, and welcomed a major Indian firm that has established its Canadian headquarters in provincial capital Winnipeg. “India is one of the world’s fastest growing economies and with our strong cultural and business connections, there’s huge potential for greater trade between our economies,” said Selinger, Manitoba’s 21st premier. “Homegrown companies like Westeel and MTM are thriving and sharing Manitoban expertise with India, helping store their grains and foods, and power their homes and businesses. And Indian firms like Riya Travel are taking advantage of opportunities in Manitoba,” he added. Westeel, a leader in the commercial storage industry, announced it will open an office in Mumbai to share its expertise in agricultural storage to help Indian producers preserve more of their harvest and better protect India’s food supply. Micro Tool and Machine Ltd. (MTM) of Winnipeg and Kirpekar Engineering of Pune announced the creation of a joint venture company, MTM-Kirpekar, to design and manufacture advanced transformer production equipment for the Indian market. Riya Travel, one of India’s largest travel companies, also announced the official opening of its Canadian headquarters in Winnipeg to grow its Canadian operations.
Source: EduNova – Nova Notes
The anticipation continues to grow as we announce the 2012 Premier Agency Business Award nominees! Only the highest standards have guided the judges on their quest to recognize the leaders in international education. Ethical business practices, integrity, strategic vision and innovation are the hallmarks of those chosen to represent the best in the industry. On May 11th, 2013, the city of Toronto will play host to the first annual Premier Agency Business Awards. Be a witness as your industry reaches new heights.
An elegant evening of entertainment and decadent food has been dedicated entirely to celebrating the nominees and their businesses. Join us, for what promises to be a memorable event as well as an industry first. This event is open to all. Please visit www.CLLC.ca/aboutus/paba for ticket information. Seats are limited. All educational agencies are now welcome to apply for the 2013 Premier Agency Business Awards. Don’t miss out on the opportunity to gain worldwide recognition and prestige. 2013 applications and sponsorships are now open.
Source: Reuters via India Newswatch
A boom in India’s management education sector that saw the number of business schools triple to almost 4,000 over the last five years has ended as students find expensive courses are no guarantee of a well-paid job in a slowing economy.
India’s seemingly unstoppable economic rise, an aspiring middle class’ desire to stand out in a competitive job market, and a lucrative opportunity for investors fueled a bubble in business education that is now starting to deflate.
About 140 schools offering Master of Business Administration (MBA) courses are expected to close this year, as 35 percent of their places were vacant in 2011- 12, up from 15-20 percent in 2006-07, a report by ratings agency Crisil found.
“The boom which was there has gone,” said Anshul Sharma, chairman of Asma Institute of Management, which he started in 2004 in Pune, about 150 km (95 miles) from Mumbai.
“Those who entered this industry with a motive to make money are leaving because there is not much money left. Every college is working to sustain itself,” said Sharma.
There was a near four-fold rise to more than 352,000 MBA course spots in the five years to March 2012.
But the allure of so-called B-schools outside the top tier is fading as the economy grows at its slowest in nine years, with the financial sector especially sluggish, and amid questions about the quality of some schools.
Only 29 percent of graduates from Indian business schools – excluding those from the top 20 schools – get a job straight after completing their course, compared with 41 percent in 2008.
Aditya Dighe took out a 330,000 rupee loan to fund his MBA from a school in India’s financial hub of Mumbai. Four months and 18 job interviews after graduating, the 26-year-old is still looking for a job that will pay enough to cover his expenses and monthly loan instalments of 10,000 rupees.
“The B-schools have promoted their brand only on placements and by boasting about salary packages. The course is theoretical and you don’t learn the skills corporates want,” he said.
BIG BUSINESS STRUGGLES
Private education is big business in India. KPMG pegs the industry at nearly $50 billion and projects it to reach $115 billion by 2018. But growth rates are not uniform across the primary, secondary and tertiary education sectors.
“A third of all management colleges are struggling,” said Narayanan Ramaswamy, a partner at KPMG.
At the peak before the global financial crisis, new business schools were cropping up almost every day, some in remote towns where even quality secondary education is hard to come by.
There are two strands of MBA courses.
MBA degrees are offered by schools overseen by the All- India Council for Technical Education (AICTE), the regulatory body for higher education. These schools must be affiliated to a university, have a maximum of 120 students and fees are capped by state governments.
A second stream allows colleges to offer diplomas that are not accredited by AICTE. There are no standardised curriculums, class sizes are bigger and fees can be higher. An institution can offer both accredited and non- accredited MBA courses.
In a city such as Pune, something of an education hub, it costs about 40-50 million rupees over two years to set up a management school, which can be as basic as a modest building with classrooms, a small library and a computer room.
When demand was outrunning supply, students were willing to pay high fees for the autonomous courses that tend to be more industry-relevant, in order to get a leg up in the job market.
“People who had some land and money saw a great investment opportunity in the demand-supply gap and there was a rush to open schools,” said Dhiraj Mathur, executive director at PricewaterhouseCoopers.
“They were not thinking about the faculty, location, employability and brand name. They thought setting up a school would take care of the rest.”
Now, some new institutions are discontinuing their autonomous courses despite often better quality education, because with no guarantee of a job, students are opting for cheaper, AICTE-approved courses.
SPOILING THE SYSTEM
Schools with little or no track record fill seats by paying existing students up to 40,000 rupees for referring other students, Asma’s Sharma said, whereas some hire agents, paying them upwards of 50,000 rupees for every student they get.
Sharma cannot afford to pay hefty commissions and is struggling to fill the 120 seats at his institute. Last year he enrolled only 45 students, and needs about 80 to break even.
“Today, students do not ask what and how they will be taught. They only ask about placements and salary packages, and what discounts we offer on the fees,” he added.
“This is spoiling the education system but if we don’t try and accommodate them we will not be able to survive.”
Elite institutes still attract students despite high fees as they have strong reputations, and their graduates are favoured by recruiters.
As a result, competition is fierce for the relatively few places in the state-run Indian Institute of Management (IIM) in Ahmedabad, and the Indian School of Business (ISB), started by two former McKinsey employees in Hyderabad.
Fees at IIM in Ahmedabad are 1.55 million rupees for the two-year MBA programme. ISB, an autonomous college associated with international schools like Kellogg, Wharton and London Business School, charges 2.2 million rupees.
Online job portal MyHiringClub.com found the average starting salary for graduates of India’s top B-schools was about $32,400, about 1.8 million rupees, more than four times the average of $7,550 for other MBA graduates.
Lavina Thadani, a 23-year-old MBA graduate from Pune, settled for a low-paying job in the capital markets team at a media house after a three-month search yielded little else.
“I expected more after spending so much on my MBA,” said Thadani who took a 300,000-rupee loan to get her degree but earns only about 200,000 rupees a year. “If I had known earlier I would have never done my MBA,” she said.
TCS Insights: The lack of quality Indian institutions offering an MBA education is a concern for Indian students who pay a huge amount of money for these courses but do not receive a significant Return on Investment (ROI). Canadian business schools promoting in India will want to emphasize the advantages and ROI of their programs, as well as promote the potential for immigration through the Canadian Experience Class program for international graduates.