Quality of some B-Schools and sluggish growth rate results in decline in recruitment of management graduates

Updated on: Wednesday, September 26, 2012

The allure of Indian B-schools, barring the top 25, is fading and the employability of management graduates is on a decline, says an expert.

Recruitment avenues for management graduates are on a decline, considering the fact that the economy is growing at the lowest pace in nine years, besides the financial sector is also witnessing sluggish growth rate.

Moreover there are serious questions being asked about the quality of some B-schools (barring the top 25) and their pass outs.

IIT Delhi, professor and head (retd) Department of Management Studies, Rajat K Baisya said on the sidelines of an event organised by SkillTree, "The number of management schools and engineering colleges in India is somewhere around 10,000 - 12,000 and there are serious questions about the employability of the graduates coming out of some of those institutions (barring the top 25)."

In late nineties India's management education sector saw a boom period as the number of business schools multiplied in no time. But this situation is starting to deflate as people are realising that expensive courses in these kind of schools would not guarantee them a well-paid job.

In the last five years however, the number of MBA seats in India has grown almost four fold -- from 94,704 in 2006-07 to 3,52,571 in 2011-12 -- resulting in a five-year compounded annual growth rate of 30 per cent, but their employability rates have fallen.

According to another expert who did not wish to be named new management colleges neither have proper infrastructure nor proper faculty and their quality of education is also not as per the requirements of the industry.

According to a recent MBAUniverse.com - MeriTrac employability study 2012, which covered 2,264 MBAs from 29 cities and 100 B-Schools, beyond the Top 25, only 21 per cent are employable.

The previous study of 2007 by MeriTrac had placed employability index at 25 per cent.

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