IIM Lucknow is getting ready to release the notification for CAT 2018. Even as lakhs of students from every part of the country seek to clear the CAT exam, there is a steady rise of questions that students are asking about the viability of an MBA degree. The recent dip in the placements at the IIMs add to the dismal picture. Even before CAT 2018 notification is released, students are considering other options for pursuing MBA. Some experts feel that the high cost of pursuing an MBA from IIM upsets the ROI, making the situation worse in the job market. We reached out to students preparing for CAT 2018 and here is what they feel about the MBA scene in India, their chances for jobs if they don’t get into IIM and also the ROI on MBAs from IIMs. The general verdict, however, is that the cost does noot add up to the benefits – at least not for all the IIMs.
Every year the Common Admission Test CAT 2018 is taken by lakhs of MBA aspirants who wish to join the prestigious IIMs and other top B-schools. The current scenario however has made many aspirants consider the prospect of doing an MBA from the top ranked and much coveted IIMs. The sharp increase in the fees of the IIMs is one of the most daunting aspect. Today, after clearing the competitive CAT exam, aspirants need to shell out about INR 20 lakhs for an MBA from IIM. The cost is also considerably high for many other well known institutes as well. We reached an applicant who was instead aiming for clearing GMAT instead of CAT 2018 as he feels that the prospect of MBA from Abroad is better. Also Read: CAT 2017 Online Applications to begin from August: Check tentative schedule and date for largest MBA Entrance Examination
Consider this, an MBA from abroad would cost you about 30 lakhs or perhaps a bit more. But the degree from abroad would be better in compared to IIM. Also, the kind of opportunities and exposure you would get from abroad would be higher, suggested the applicant. Another applicant shared that even if she was to clear CAT 2018, she is not too keep on IIMs because of the cost. “Campus Placement news are constantly saddening. Taking up a massive education loan to fund a 20 lakh degree course can cause more problems. I would rather aim for FMS which has a much lower fee but offers me equal set of opportunities.” Also Read: CAT 2017 Mock Test to be organized by TIME on July 9, all you need to know about AIMCAT 2017
A teacher with a well known CAT prep center shared his views, “For the MBA aspirants it would be beneficial if they go through the fees, highest package, and average package of the premier IIMs. In the year 2016, the fee at IIM Admedabad is Rs 9.39 lakh. The MBA graduates can expect that the highest package offered at the institute if Rs 1.02 CPA (International) and Rs 48 LPA (Domestic). For IIM Bangalore the fees is Rs 13 lakh while the highest package is Rs 1 crore plus (International) while the average package is 19.2 LPA. For the Faculty of Management studies the fees is Rs 10,480 per year while highest package offered is USD 150,000 (international) Rs 54.30 LPA while the average package offered at FMS is Rs 20.60 LPA. The fees cover tuition, course material, computing and networking, library, alumni association, student activities, career counselling and accommodation. Simple maths suggest FMS is a better ROI for your MBA degree.”
There is more truth to the claims. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) study in 2016 revealed that most of the 5,500 business schools in India are producing “unemployable” sub-par graduates. These management graduates also earn less than Rs 10,000 a month if at all they find placements and the return of investment. The lack of ROI is attributed due to the lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty as per the ASSOCHAM report. As per the report only 7 per cent of the MBA graduates are employable. It is important to note that with the decline in start ups and the IT Industry lay offs, the situation is more grim for students who get through IIMs but do not manage to get employment.