These headlines have dominated news coverage this year and paint a dismal picture of the job market for graduates in management. Many B-school grads are still searching for their dream job as the
placement season winds down. Business Today and Marketing and Development Research Associates have conducted a survey on India's best B-schools this year. This is the 25th edition of the overall survey and 12th with MDRA.
IIM Calcutta is the leader among the institutes that offer the two-year MBA program for the fourth year in a row. ISB maintains its leadership in the Executive MBA program, while upGrad, IIM Ahmedabad, and other institutes continue to dominate edtech programmes and short-term Executive Programmes, respectively.
The challenges continue to mount, even though the top B schools have maintained their rankings. In a time when digitisation, Gen AI and other technologies are set to transform the corporate sector in the near future, B-schools play a vital role in closing the skills gap. The poor placement results this year may be a sign that structural problems are at play. There is no doubt that the global economic narrative has changed. From protectionist policies designed to keep jobs in one's own country, to disruption caused by Gen AI and the rise of new sectors such as electric vehicles, renewables and climate-focused sectors, the storyline has shifted. Startups also challenge the traditional ways of doing business.
Every company, no matter how big or small, captures vast amounts of information. "Analytics has become central in all initiatives undertaken by companies," states Prabina Rajib at Birla Institute for Management Technology (BIMTECH).
The industry has responded in a variety of ways. Some are fighting aggressively; others are exploring collaborative efforts, and some are simply ignoring these changes. How are business schools preparing to deal with this issue?
In a recent study, the Bank of Baroda research unit discovered that headcount growth rates fell from 5.7% to 1.5% between FY23 and FY24 (see the box "Hiring Slowdown"). Puneet Arora is the Managing Partner of HR services firm Biz Staffing Comrade. He says that campus placements in both engineering colleges as well as B-schools are a source of concern. Himadri das, Director General at the International Management Institute (IMI), says that IT, consulting and manufacturing companies are becoming nervous about their ability forecast revenue growth with confidence and maintain their margins.
A growing gap in skills between academic training requirements and those of the industry is another key issue. Dhriti Mahanta is Vice President and Head of Business at TeamLease, Degree Apprenticeship. She says that this mismatch can be seen in the IIT placements where the number of unplaced IIT students has increased.
Almost all companies invest, research and explore the impact of Gen AI. This will have a significant impact on the traditional jobs that management students usually pursue. "Many of these jobs will become redundant while new job responsibilities also emerge," BIMTECH's Rajib says.
The hiring trends are slowly shifting across industries, with a greater demand for technical and cross-functional qualifications than traditional qualifications such as an MBA. Now, companies hire people based on their job description and not educational background. This shift is most evident in the smart manufacturing, retail and logistics sectors. Automation and AI has created an increased demand for engineers and IT specialists.
Rajesh Bharatiya is the MD of Peoplefy a staffing firm. He says that there has been a change in traditional marketing concepts. MBA graduates who specialize in marketing now need to have a solid understanding of SEO and SEM. They also must be familiar with social media marketing.
Das says that companies prioritize the ability to apply their knowledge. "With today's pace of change, there is no time to spend on teaching application skills," Mahanta says.
There is a trend in the financial services industry to hire more engineers rather than MBAs. This is because of the growing need for data analysis, cybersecurity, and risk management skills. Deepak Malkani is the co-founder of IndusGuru, a consulting firm. "Banks use big data to manage risks, understand customer behaviour and develop new products," he says. Rajib says that recruiters are turning to undergraduate universities for candidates with strong backgrounds, such as economics, psychology and commerce.
Experts say that B-schools must understand the changing needs of talent. Kotak Mahindra Bank, for example, has created the senior-level position of "Chief Customer Experience". Wipro and HCL, for example, have also appointed Chief Growth managers. Nitish Jain is the founder and president of S.P. Jain School of Global Management.
Some B-schools are already in the process. After intensive brainstorming sessions with industry and faculty, Noida's BIMTECH completely redesigned its curriculum. This led to the change of several compulsory subjects. Now, for example, Python and ESG have become compulsory. Rajib says that we are required to have at least 20% of all subjects taught by industry professionals.
Raman Ramachandran is the Director and Dean of K J Somaiya Institute of Management. He says that his institute created a new position, "Experiential learning manager", and hired someone with experience in industry to work with industry and identify problems statements.
The global AI wave offers Indian business schools a choice. Jain says that we can ride the wave or get swept up by it. Experts say that the main challenge lies in figuring out what Gen AI is and how best to use it. Mita Brahma is the National HR Head of NIIT Ltd. She says that NIIT Ltd. constantly updates its curriculum to prepare for Gen AI.
All this, however, requires money. "IIMs no longer receive government support. Kunal Ganguly is the Dean of Development for IIM Kashipur. He says that we fund our operations in part through student fees, and to a lesser extent executive education. Executive education is also under pressure to generate income. It's difficult to increase fees, as B-schools charge a lot already.
Edtechs are now offering certificate courses, ranging from digital marketing to data analysis. IIMs, and other premier institutions in India offer about 600 of these courses according to estimates. Jain, of S.P. Jain believes that edtechs erode the image of B schools. He says that edtechs are only useful for increasing revenue on the lower end but detracts from the prestige and reputation of degree-awarding institutions.
Students Survival Guide
B-schools must also accept the media consumption habits of students. They prefer to watch videos and listen to podcasts over reading. Platforms such as Coursera, edX and others that offer the biggest MOOCs globally (massive online courses), provide high-quality videos that are in line with the media preferences of this generation. Partnerships with MOOCs can go a long ways in democratising the education system, particularly for B-schools who struggle to recruit top faculty. These collaborations will benefit even lower-tiered B-schools who cannot afford to hire professors of high quality, says Das from IMI.
IIM Kashipur has reduced the length of classes from 90 to 75 minutes "because we realized that 90 minutes was too long for a student to pay attention", says Ganguly.
It is not right to place all the responsibility for producing brilliant professionals on the academic institutions. The industry's needs are changing faster than the academic world can keep up," says K.S. Viswanathan is a Strategic Advisor at Peoplefy.
The students must also realize that an MBA does not guarantee a lucrative job. Arora, of Biz Staffing Comrade, says that it is important for students to keep up with the latest trends and to acquire relevant skills in order to improve their employability. It could be gaining additional certifications, pursuing continuous learning or gaining experience through internships.
The growing demand for analytical and technical expertise is expected to bring back the dominance that engineers once held in B-schools. "A business program is, at best, the beginning of an exciting transformation journey. Ramachandran, of K J Somaiya, says that it is important to recognize that you're here to begin that journey and that the journey will continue after you leave. Are you ready to start?
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