MBA Abroad: One step further for Indian students to a world of opportunities

Before taking a decision to opt for pursuing MBA from abroad, the first and foremost thing for an Indian student to remember is that an MBA abroad is not only a business degree from abroad but a two year journey of exposure to a different education system, exploration for adopting skills outside generic disciplinary domains and a life experience of living and working overseas.

India is home to prestigious B-schools like IIMs and ISB which are constantly providing a strong platform for students, to enable them to become competitive and accessible in the corporate world. As a result of the high market demand during the last economic boom demands for quality B-schools were on the rise and mushrooming of B-schools can be seen all over the country. Over the last couple of years the IIMs, ISB and other top B-schools in India are moving forward to make Global footprint but in the struggle a lot more has to be done by top B schools in India to secure a place among top 20 B schools of the world.

MBA from a Top Indian B-school or a Top B-school abroad: Decide on merits

Consider you have been offered a place in IIM Ahmedabad, Bangalore or Calcutta and also at Harvard, all distinguished and reputed. You are now bewildered to make a choice. The decision will have the most powerful impact on your future. Taking into account the money involved, tuition fee per year in Harvard will alone cost you around Rs.60 lakhs whereas in an IIM the fee and other expenses for the entire program would be around Rs.20 lakhs. Keeping aside the finances take a look at what Harvard has to offer -

• Harvard is the No.1 B-school in the world

• International and multicultural exposure

• Global connection and a strong network of alumni , peers and faculty

• Exposure to the global business market

• Exposure to a world-class education and a lifetime experience and much more

Analyzing the above factors it would be by far wiser to invest and opt for Harvard for a firm career ahead.

MBA Abroad-More than just a degree

Pursuing MBA from a renowned B school abroad is not only about the monetary return on investment. It has other non-monetary benefits added to the package which seems to lack in the average rung Indian B-schools. Each school abroad has its own brand and its own value. They teach you hard skills such as marketing operations, economics etc and soft skills such as teamwork, communication and leadership. Most importantly, it helps you establish the valuable ‘network’ and ‘contacts’  and you are left with more than just a degree. Everyone you network with during the period— fellow students, alumni, faculty staff, and visiting speakers — will prove invaluable when it comes to seeking out a high-profile internship and, eventually, a job.

MBA Abroad and ROI: Going abroad is better bet

An MBA is a major investment and many students incur huge debts to pursue the business degree. Back in the 90’s when there was less competition; there was no question as to whether the MBA is worth the investment. Today, the competition has increased triple fold and there is an abundance of MBA graduates. Besides time and money, hopes and emotions of students are also at stake. And, therefore determining the return on investment of the business education is evident. When it comes to ROI, doing MBA from abroad is the best bet. The Financial Times Rankings places 40% of the weightage on ROI of the schools. Similarly, the Forbes magazine too ranks the schools on the basis of the ROI.

When you decide to do an MBA, you ought to know that you will be missing 2 years of salary. Even if you did not have a job before starting the course, expenses such as rent, travel and books etc. would still be incurred during studies. Ideally, the amount you earn after investing in your MBA is the Return on Investment or ROI. The ROI can never be estimated with actual accuracy since there may be many unknown variables. It should also be noted that big names such as Harvard and Emory may not always pay off immediately but you will gain in the long term. Similarly, do not be mesmerized by small numbers of the less expensive B-schools or the immediate ROI as it won’t improve your gains for a longer period. Hence, while deciding for an MBA it is important for you to know whether you want the MBA for a long term progression or immediate jump in salary. Also, remember that the ROI will vary with the economy.

Placement Comparison: India & Abroad

MBA graduates from India’s top B-schools get recruited on-campus by top companies from India and abroad. The average annual packages at IIMs, ISB and other top B schools are around Rs 19 Lakhs while the average annual pay package offered at top B schools abroad is around Rs. 78 lakhs.

Take a look at the table below for more clarity.

Doing an MBA from India is relatively less expensive and costs almost half of what an MBA abroad would cost. However, above figures clearly show that by passing out from an international destination the average salaries are increased nearly three to four times than the Indian counterparts.

Take the Plunge

Studying abroad does not always guarantee a job abroad. Many students do not secure a job abroad and return to their home country to find a job. Under such cases employers evaluate the following: 

•  Why did the candidate not find a job abroad?

•  How much would the company have to pay a candidate from an Indian B-school with a similar skill-set?

Events like recession, lay-offs and company cost-cutting are very common during these trying times of the global economy. Hence, recruiters try to get the best candidate with the least CTC (cost-to-the-company). Hence it may seem at times that a safe and cautious approach would be to opt for a top-notch Indian Business School but then again, high career potential after studying at Harvard and Wharton cannot be undermined.

Therefore, it makes sense that you work for a few years prior to the MBA, ace the GMAT (aim for a score not less than 650 to 700) and plunge into a reputed B-school abroad. Once you have decided to move a step further prepare yourself well for the MBA application –

- take note of university requirements,

- prepare well for the GMAT,

- take note of available financial resources,

- develop skills such as teamwork, leadership, communication to showcase your professional experience

- develop writing skills

- assess your career goals

Lastly, choose your B-school wisely to make your investment worth it while opening up doors to a world of opportunities.

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