Enrollments are falling at the lower end of the B-school hierarchy. India has around 4,000 B-schools, as per unofficial estimates. Up to three-fourth of them will disappear in the next few years, as per many edtech entrepreneurs, analysts and industry experts. Students would much rather opt for an online course from a premier institution over a two-year-long course at a low-quality B-school.
Moreover, there is also the question of faculty, says Abhishek Chakraborty, Associate Professor, XLRI - Xavier School of Management. “Many Tier II and III schools struggle to get decent faculty members. They end up bringing people from industries who don’t come from top companies.”
“Unfortunately, the lower-ranked institutions will not survive,” says Mohan Lakhamraju, Founder and CEO, Great Learning. “They never had a compelling value proposition. They do not offer quality education, a great learning experience or career opportunities for what they charge. Now that people have affordable, quality options in edtech, Tier III and IV B-schools will disappear, they will die.”
Meanwhile, edtech companies work with top-tier universities to design curriculum that is delivered via live and recorded sessions by either their own or the university’s faculty. These courses are more rigorous than MOOCs and priced on the higher side, targeting value-conscious users. And they are becoming popular. The maturing of the edtech ecosystem of management education has accelerated this flight to quality. And this is to the peril of Tier II and III B-schools.
In fact, edtech platforms are aggressively marketing their online MBA courses in Tier II cities, further weakening the case for local universities. And it is not just the brand name that is the draw of an online course.
“Greater disruption may happen in Tier II, III universities. Students and even working professionals may prefer an option to earn a degree from online courses offered by internationally well-known universities and at an affordable price. This will also allow them the flexibility to take on a job and continue education online,” says Amit Nawka, Partner - Deals and India Startup Leader at PwC.
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