MAIN INTRManagement education in India is booming. There are over 1,250 approved business schools, 1,25,000 full-time and 1,00,000 distance MBA students and 1,30,000 MBA aspirants taking the Common Admission Test every year.
The end-users, the recruiters seem to be facing a constant supply crunch, and are always on the lookout for the talent graduating from the top B-schools. Thus the MBA is a valuable commodity that insures a quick return on investment.
With the burgeoning of the Indian economy and the growth of India's middle-class, more Indians than ever before are able to afford brand name American degrees. While foreign applications to American B-schools have dropped with visa restrictions post-9/11, applications from Indian students are increasing.
Coupled with this is the fact that many of the foreign (Indian) MBAs plan to return to India after graduation - a complete reversal of the brain-drain in the 70s and 80s.With increasingly larger number of aspirants looking at MBA abroad; what are the pros and cons of an MBA in India vs. MBA abroad? Is it worthwhile to get an MBA abroad?
This decision depends on a number of factors and ultimately has to come from you. We present these factors before you, on making this vital decision.
Assess the cost
The cost is of course the bottom-line. For the average Indian, a foreign MBA is very expensive; at the least an MBA degree abroad would cost you around Rs.10 lakhs to Rs.15 lakhs.
Normally an MBA from the top tier schools in the U.S. will cost you around Rs.25 lakhs to Rs.35 lakhs. Given the exorbitant expenditure (assuming that you are not getting any scholarship, as getting aid for an MBA programme is difficult) is it worth it? Look at the resources at your disposal (your own bank account, your parents' or a benefactor's).
The funds available would throw up various options:
If you have half the funds required (Rs.10 lakhs to 15 lakhs), you can go ahead.
If you have one-fourth the funds required (Rs.5 lakhs to Rs.6 lakhs), you can manage the first few semesters. You will have to find ways to raise money while studying (an option many Indian students resort to).
If you are constrained on cash, but can manage a bank loan, you need to think hard.
Are you confident you would do well in the programme? Would you manage to get a job?
Prime MBA destinations are the U.S., the U.K., Canada, Australia and New
Zealand. The chances of employment are better in the U.S. and Canada.
Getting a job in Australia and the U.K. is comparatively difficult. Even if you do spend Rs.15 lakhs doing an MBA abroad, you would be able to recover the money within a year of passing out; provided you have the grit and determination to do it.
At this juncture, we should not underestimate the value of our Indian MBA.
Indian MBAs have proved themselves in MNCs working as VP, directors, senior consultants, partners. Consider the purchasing power parity, initial expenditure (cost of the programme), initial placements, and growth in salary as inputs in your decision.
The options before you should lead your choice.
If your choice is between the IIM and a top-tier global institute, choose the latter. The global institution would provide strong alumni network, worldwide placements, diverse class and global brand recognition.
The diversity of student body and networking is a definite plus in a foreign
MBA. The students from a top tier foreign school would have three to four years of work experience. They come from a variety of backgrounds such as finance, high-tech, marketing, even poetry, television and films.
A variety of students come from different countries - a British journalist, an American banker, an Arab entrepreneur and you an Indian IT professional working either as sales or software engineer. You would be able to develop a network across countries, which could hold you in good stead.
A typical Indian MBA class would have less than 10 per cent students with work experience from IT, manufacturing and sales jobs, with the large majority of freshers.
If your choice is between a mid-tier B-school abroad and an average
Indian institute, you could choose to go abroad. Do not choose any foreign
B-school that you get selected into.
Post-MBA
Finally you need to decide what you plan to do after your MBA. Do you wish to take up your career abroad or in India? This is probably the most defining factor in your decision.
If you are planning to take up a job abroad, go for a foreign MBA. It helps to jump-start a global career with easier possibilities of repayment of loan.
If you plan to return to India on completion, you need to think through.
Compared to foreign B-schools, Indian institutions offer a substantial cost advantage, making them more attractive if you are planning to build your career in India.
Are you sure you want to take on a liability of Rs.25 lakhs or more a year for an overseas MBA? The MBA at an Indian institute would cost around Rs.4.5 lakhs, not counting the lodging expense.
Funds tied up, B-Schools rankings should determine the final decision: Is the value proposition of the foreign B-school better than that of the B-school you are selected, in India.
Take stock
Finally irrespective of which school you get into India or Abroad, you need to prove yourself once you join the workplace. You need to market and sell yourself, having the MBA behind you.
If you are selected to the top-tier 50 schools abroad, go for it. If you are selected for MBA in India in the top 15 schools, assess the pros and cons. It's a tough choice.
Do MBA abroad for global network, practical outlook
After gaining work experience of around two years, Neha Arya wanted to groom her managerial skills for which she decided to do MBA. She wanted to be taught in a more practical way with a case study approach. “The options those fit my expectations were available only abroad. In India, we are more traditional and the course content we have has been the same since centuries. Barring a few institutes, the lecture method here is focused on one way communication wherein students are forced to think in a particular way,” she says. Neha pursued MBA in International Business from Birmingham City University, UK and is now working in India. Besides, foreign MBA provides students with an opportunity to have cross cultural experiences. One learns how to handle cultural barriers in a multinational setting. Mansie Dewan, an MBA consulting expert, shares that she knows many MBA graduates from India who want to do another MBA from abroad to learn from a diverse peer group.
Tough prerequisites for MBA admission abroad
Such a study course does not come that easy. First and foremost requirement is money. Even if you have been a topper in your earlier academic institutions, MBA from foreign shores does not come for less than Rs.7-8 lakhs excluding living expenses. You might think of availing a loan but then you’ll have to arrange for collateral as well as guarantee. Then comes the eligibility. One needs to have work experience of at least 2-3 years to be eligible for an MBA abroad. Along with that, a good GRE or GMAT score and a fine academic record are imperative. At times international exposure, that your job/ education might have already given you, also matters.
Placements for MBA abroad
Placement opportunities for foreign MBA students abroad are very less. There are not much placement facilities and summer internships for International students
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