Sunday, 10 February 2013

Reasons: Indian B-schools going out of business

http://digitallearning.eletsonline.com/2013/02/indian-b-schools-going-out-of-businessassocham/

Losing campus recruitment from corporate India, only 10% of graduates being employable
A survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Since 2009, the recruitments at the campus have gone down by 40% in the year of 2012.
More than 180 B-schools have already closed down in 2012 in the major cities, while another 160 are struggling for their survivals.

No quality control
Placements are not commensurate with fees being charged
Faculty is not good enough
No infrastructure
Need to update and re-train faculty in emerging global business perspectives 
Rapid mushrooming of tier-2 and tier-3 management education institutes

ASSOCHAM has advised to improve infrastructure, train faculty, work on industry linkages, spend money on research and knowledge creation, as well as pay their faculty well in order to attract good teachers.

Most of the students prefer to choose cheaper AICTE approved programs rather than B-schools.Nowadays students are not concerned about the quality of education in an institute, they only want to know the placement and salary statistics and discounts offered on the fee structure and this has spoiled the entire education system.

In the last five years, the number of B-schools in India has tripled to about 4,500 amounting to as many as 360,000 MBA seats. Collectively.MBA seats in India grew almost four-fold from 95,000 in 2006-07 to 360,000 in 2011-12, resulting in a five-year compounded annual growth rate of 30 %.

Unfortunately, job opportunities for MBAs have not grown in the same proportion. The MBA capacity in the country was built based on the projection of a 9 to 10% economic growth rate.
 Similarly, the Master of Computer Application (MCA) course, nearly 95 colleges stopped offering the programme this year and only 25 started MCA courses.