Five of the top ten desired employers of MBA’s this year are consumer technology companies. Long-standing service firms like McKinsey, Bain, BCG, Goldman Sachs and Blackstone were joined by likes of Google, Apple, Facebook, Amazon, and Ideo.
That so many MBAs are seeking jobs in tech has spooked many who increasingly fear a second dot-com bubble, reports the US magazine „Fortune“. Many cite the “Harvard MBA index”, an analytical tool, which famously tells investors to go short in any sector with more than 30 per cent of Harvard Business School graduates entering it. In 1999, that sector was tech.
Others believe the case for MBA’s in consumer technology is fundamentally different than it was a decade ago and list three reasons why MBA’s seeking jobs in technology may not be the end of the world.
#1: Before the late 1990's, the U.S. economy was a lot less dependent on consumer technology as a key driver. From 1998-2008, however, the real GDP of the information sector (which contains tech) grew at 3.7 per cent annually, a rate second only to that of "professional and business services." Despite its robustness, tech's share of the U.S. economy remains relatively small (less than 5 per cent), so there's still plenty of room for growth.
# 2: Technology has become a real business with known paths to monetization: when we look at revenues in 2000 versus 2010, we see several already established companies that grew 200 to 300 times, like Microsoft or Oracle; others like Apple, Amazon and Yahoo even managed factors between 600 and 3,000.
#3: MBAs can be useful at big tech companies: What's the difference between working for GE and working for Apple? By any measure of objectivity, a job at Apple is just as "low risk" as the traditional MBA job at GE. Still, most would agree that Apple has better growth prospects than GE and is probably a more exciting place for work.