B-Schools are on an expansion spree, every year they add at-least 20% seats. A recent study says “The employability of management graduates in India has declined in the past five years, as only 21 per cent of MBAs surveyed are ‘employable’.”
The sample size used for the study was 2,264 MBA’s from 29 cities and 100 b-school. A previous such study had places the employability index at 25 per cent.
In India number of MBA colleges have grown and also the seats. From 94,704 in 2006-07 to 3,52,571 in 2011-12 – resulting in a five-year compounded annual growth rate of 30 per cent.
Most students in India do MBA from a placement perspective. They do it because they want to get a good placements, this is the ultimate goal of one doing an MBA. Now when only 21% of these MBA’s are employable why do an MBA? People with prior work experience and who are doing it from a good college score over others.
These days most b-schools are coming up with innovative MBA courses like eMBA-Insurance which is offered by MET college in Mumbai, Welingkar in Mumbai offers various PGDM courses like – eBusiness, Rural Management, Business Design and more, NMIMS Mumbai offers MBA in Capital markets, Actuarial Science and more.. These kind of specialized courses have created a demand and also have a huge scope of employment as they are offered from well known colleges.
Will specialized courses prove to be helpful is providing employment a big question. What’s your take on this?
A study by GMAC said more companies plan to hire MBA’s this year (May 2012)