Showing posts from March, 2012

Growth Statistics on Engineering and Management Institutions in India

Number of AICTE approved seats for student intake in engineering and management institutions in India grew by nearly 125% and 180% respectively in five years as compared to the growth of economy (Gross Domestic Product-GDP) by only about 50%.

Clearly, engineering and management institutions have grown at a pace much faster than the economy to absorb the talent. This in turn has created a situation of overcapacity, poor quality and unemployability of graduates.

Growth of engineering institutions even outstripped the pace of growth of IT-BPO industry. For example, IT-BPO industry grew by nearly 85% in five years as compared to 125% growth in engineering institutions. Given that many engineering and even management graduates go to high-growth, high-paying IT industry, this sign of overcapacity is troublesome and indicates that industry is headed for a major shake-up and consolidation.

Another troublesome part is that despite the growth of student intake of doctoral seats have not increa…

Indian MBA Bubble Bust?

Is the great Indian MBA bubble busting? 134 business management institutions in India had submitted applications to AICTE for closure (Indian regulator for management and engineering programs). One of the major reason is low enrollment number of students which in turn reflects poor quality of programs and employability potential for students. (Here is my earlier post on B-schools Bubble ).

There are also many institutions which are not approved by AICTE and facing challenges of financial sustainability and growth. For example, Mumbai Business School closed within three years despite having some big names associated with it. The official noted “We were not able to generate the operational cashflow and capacity utilisation was below the mark. So we decided to down the shutters.”

Many institutions started in last five years without AICTE approval, blaming its bureaucratic process and restrictive rules on academic and financial operations (Here is the list of institutions conducting tech…

Asians fueling demand for American MBA

Asian countries are the engines of global economic growth. Between 2000-2010, Indian and Chinese economy grew four-fold and five-fold respectively, in contrast to one-and-a-half times for the US.

The story is not very different in the world of management education. Asia is emerging as the engine of demand for global MBA programs. A recent GMAC report notes that number of GMAT test-takers in the US remained stagnant over five years, however, they grew by nearly 47% in Asia.

TY 2007TY 2011Change% ChangeUS117,321116,546-775-1%East & Southeast Asia34,54857,64923,10167%Central & South Asia23,64227,9024,26018%Total Asia58,19085,55127,36147%
The contrast between Asians and Americans for management programs becomes even more interesting when comparing the absolute numbers. The number of Americans taking GMAT decreased by 775 in five years however, the number increased by 27,361 among Asians. Thus, all the growth in demand for GMAT test-takers and American B-schools is emerging from ou…

International Student Mobility Research Report

Competition for international students, cost of recruitment and complexity of higher education systems is posing serious challenge for higher education institutions to recruit in an efficient manner. A recent report published by World Education Services notes that "Overall, U.S. institutions will likely expect another year of international enrollment growth in 2012. However, the road ahead for most U.S. institutions of higher education will not be smooth as many institutions grapple with challenges in meeting recruitment goals with limited time and tight budgets. This is where a better understanding of enrollment trends would help institutions prioritize their resources." Given below is the excerpt from the report:
• While China and India are still too big to ignore, there are other emerging countries worth paying attention to, including Saudi Arabia, Vietnam, Mexico, and Brazil. Recruitment to these countries should also be cultivated not only for campus diversity purpose…