Recession boosts investment in management education :
At the times of economic gloom, it is boom time for B-schools. And India is the driving force in the increase in number of application in 24% of the 683 management programs across 42 countries.
In the US 52% of the full-time management programs have seen increased interest, while in the Asia-Pacific region it is 53%. The biggest draw however is Europe with 73% of the program receiving more applications than in 2012.
Back home, CAT 2013 has so far received 1,93,596 registrations till Wednesday. Registration ends on Thursday midnight.
As per Graduate Management Admission Council’s 2013 Applications Trends Survey more full-time MBA programs worldwide saw increases in the number of applications this year compared with that of last year. According to GMAC, which administers Graduate Management Admission Test ( GMAT ), full-time, two-year MBA programs in the US show an upswing, as 52% of programs report application increases over 2012— the first time since 2009.
This year’s survey included 683 graduate-level programs in business and management at 328 B-schools in 42 different countries. In Europe, Master in Management programs continue to show strength, as 73% of programs report application increases from 2012. Meanwhile, 38% of Europe’s full-time one-year MBA programs showed application gains this year, comparable to the 37% in last year’s survey.
India drove the greatest increase in source of talent 24% of the 683 programs received higher number of applications from the sub-continent. According to Bibek Banerjee, director, Institute of Management Technology, Ghaziabad, this is a common phenomenon and the reason for increased number of application from India is due to limited number of quality B-schools in the country. “It is basically economics of opportunity.
It is a worldwide phenomenon, where demand, especially for management education, goes up during recession. Whenever the market is drying up it is good to invest in education. In the context of India, after 60 years of independence, we still have no good management university with the exception of a few IIMs, ISB and the likes of IMT which can recruit just around 8,000 candidates annually. In India the gap between the top tier and middle rung institutions is enormous. So what is the alternative, but to explore opportunities abroad,” said Banerjee.
Recession spells boom for management education said GMAC vice president, research and development, Lawrence Rudner. “In 2008 and 2009, early in the Great Recession, there was impressive growth in the proportion of full-time MBA programs showing increase in applications. In 2010 and 2011, there was a subsequent decline, but full-time programs began to rebound in 2012 and look even sturdier today,” said Rudner.