“Increased competition will fuel the education appetite in India”

Will the Foreign Education Bill enhance competition and do you see that as a threat or a challenge?

Healthy competition is always good for the development of the overall quality standards. We welcome the Indian Government’s move to increase foreign direct investments in education by allowing foreign institutions to set up base in India, and believe that the new regulation will create a level playing field allowing all good quality institutions – whether Indian or international – to thrive. We hope that the competitive framework will lead to the creation of many more world-class institutions in India, which will eventually develop and strengthen the overall ecosystem of faculty and research, apart from making India an attractive destination for top-notch global talent.

Will Indian students want a degree from a brand name Western business school or rather one from an Indian Business school, if given the choice?

Students anywhere will always gravitate towards institutions that provide them with an enriching learning experience, and expand their career opportunities and prospects. It has to be worth their investment of time, effort and money. India today faces a lack of quality higher education. We believe that the increased competition will only fuel the education appetite of Indian students.

Why are so few other Indian business schools accredited with Equis or AACSB? And do you think the entrance of Western schools to the Indian market will change that?

Indian business schools have traditionally been quite insular, focusing more on the domestic market. But the effects of globalization are visible as much in business education, as in other industries. With increased competition and changing market dynamics, the outlook of Indian institutions is also changing fast. Correspondingly, they are gradually recognizing the importance of global accreditation, which is bound to increase in the near future. As a product of the 21st century, the ISB has been global in its character and outlook since inception. Realizing the importance of accreditation, we have already initiated our global accreditation process, and are progressing towards achieving it in due course.

The “Financial Times” ranks the Indian School of Business on place 13 in its 2011 global ranking, two ranks down from the IIM in Ahmedabad. What does it take to become one of the subcontinent’s finest business schools?

In recent years there is a rise in the number of B-schools from countries like India, China, and Singapore in global rankings. This trend is consistent with other trends in global business. I expect that this will increase in the coming years. Having said that, rankings are an important indicator of the quality of an institution, but they are not an absolute measure. While the specific position in a year may move up or down, we are delighted that ISB has consistently been featuring among the top 20 in the FT ranking for the last four years in a row. We have achieved this through an unwavering commitment to quality in all that we do.

The FT stresses the importance of an intercultural exchange and diversity in its ranking. How do you see your school in this regard?

The ISB believes in diversity, and we consistently focus on enriching the class composition in several parameters – gender, professional background, educational background, nationality among others. The average work experience of the class is five years, and the average age is 28 years. The average GMAT score at 712 is comparable to some of the top global B-schools. All this leads to an extremely dynamic and challenging class environment that is highly conducive to learning.

You have 29 per cent female students, a well-known competitor, the IIM-A has only seven per cent. What do you do to attract female students?

Over the years, women have performed exceptionally well in their careers, post their stint at the ISB. In our outreach to the prospective student community, we have consistently emphasized on our focus towards gender diversity. This includes seeding activity in women’s colleges. We have a scholarship earmarked specifically for women students. We also encourage student spouses in the programme to sample classes and get a flavor of the programme. This has also yielded in some spouses coming back to join the programme.

Applications for full time programmes are down all over the world. At ISB they are up 20 to 25 per cent. What you do better than others in attracting students?

The Indian economy has been more resilient in comparison to other developed markets. There is a continuing demand for high quality management talent, notwithstanding the prevailing lack of high quality management institutions. Over the years, we have been able to build our reputation as a world-class business school by consistently focusing on delivering highest quality of programmes and conducting cutting-edge research. And the results of this are showing. Further, the number of applications that ISB has received from international markets has grown by over 60 per cent in the last three years. Part of this has also been on account for a “reverse brain drain” that we are witnessing, where Indians who had moved out of India in search of greener pastures are actively looking to come back to capitalize on the spurt in business and employment opportunities here.

What is your distinguishing feature in comparison to the Indian Institutes of Management?

Historically, the MBA market in India was characterized only by the presence of the 2-year programme, targeted at college freshers. We pioneered the one-year format in India, targeted mid-career professionals with a minimum of two years of work experience, provided a programme with a world-class curriculum and delivered it through best-in-class faculty from around the world. The ISB today is the youngest institution to be ranked among the Top 20 business schools in the world. Also, understanding the lack of research in the Asian context, we have focused strongly on research over the years, and have already established ourselves as the most research productive Indian institution.

You just doubled the budget for scholarships. What is this initiative aiming at?

As a part of larger strategy to attract the best quality talent, and to ensure that deserving students aren’t denied high quality management education for the want of funds, we doubled the scholarships from 40 million to 80 million rupees (580.000 to 1.16 million Euro) for the incoming class of 2013. Through this increased outlay, one in every seven students studying at the school will receive scholarships of 25 to 50 per cent of the total tuition fee. The scholarships will be awarded on both merit and financial need basis to outstanding students, selected on the basis of exceptional academic and professional performance as well as personal qualities such as leadership, integrity, and community service. We will continue to grow our overall outlay for scholarships in the coming years.

The salary data is impressive, both in terms of the average three years after graduation (132,330 U.S. dollar). Who is hiring your students? Are they mainly working in the Indian market or are many snapped up by foreign employers?

Some of the key highlights and trends of the placement season concluded in April 2011 are, that we witnessed an overall increase in the number of offers by 22 per cent. And while the domestic offers increased by 19 per cent, the international offers rose by 35 per cent over the last year. More offers were made per company, reflecting the revival in the economy and the fact that companies are now in expansion mode. Both international and domestic companies hired ISB students for international locations, in key positions. There was a 35 per cent increase in international offers, with 83 offers being made by 73 companies from across the globe including Middle-East, Europe, Asia-Pacific, Africa and North America. The leading sectors for the 2011 placement season were consulting (32%), IT (21%) and banks/financial institutions (12%). The offers from the consulting sector doubled compared to the previous year. In terms of compensation we witnessed an overall rise across industry segments and functions.

How do you train your students to compete on a global level? Do you have exchange programmes with your associate schools… Kellogg, Wharton, London Business School, MIT?

The International Student Exchange Programme gives them an opportunity to study at other leading business schools around the world. The ISB has partnerships with 36 B-schools for exchange programs in Italy, Singapore, Canada, Australia, Taiwan, Korea, the Netherlands, and Hong Kong. Students from these schools have studied at the ISB as part of this programme and our students in turn go to study at these schools.

There are about 2,500 business schools in India, with more emerging daily. Yet, while Indian business schools may be teaching great students, there is little evidence that the schools are creating innovative ideas through research, writes the Financial Times, quoting a study from the London Business School.

There is no doubt a lack of high quality management research in the emerging markets context. The ISB recognized this need and has, from its inception, focused on research. The article that you referred to also points to the fact that ISB faculty have contributed and played a leading role in the research output from India over the last few years. This is despite our being a very young school, and the long lead time it takes to produce world class research.

Our faculty consists of PhDs from leading global management institutions. They are required to publish their research in top international journals and the school incentivizes them in several ways to do so. They work on a tenure track system on the lines of top B-schools across the world. The ISB also invites faculty from top global B-schools across the world as research scholars to stay and work at the campus. We encourage our faculty to work on joint research projects with them, in addition to their individual research. By interacting with faculty across the globe, they are in sync with the cutting edge research practices in their areas.

ISB - Indian School of Business

Ajit Rangnekar
is the Dean of the Indian School of Business (ISB). Prior he was the Deputy Dean of the ISB from 2003 to 2009. He has a background of over thirty years in Consulting and Industry across different countries in Asia. Before joining the ISB, he was the Country Head, first for Price Waterhouse Consulting and then for PwC Consulting, in Hong Kong and the Philippines. He was head of the Telecom and Entertainment Industry Consulting practice for PwC in East Asia (China to Indonesia) and worked with Associated Cements Companies, India (1970 to 1981).
Rangnekar holds an undergraduate degree from the Indian Institute of Technology, Mumbai, before completing his post graduation in Management from the Indian Institute of Management, Ahmedabad.