“It’s not business as usual for coveted IIMs this year”.
“Highest salary offer at IIM Ahmedabad Post Graduate Programme in Management for Executives drops to Rs 54.8 lakh, the lowest in six years”
Such headlines have dominated the news this year, painting a dismal job market for management graduates. As the placement season wraps up, many B-school graduates are still without their dream jobs. Amidst these challenging times, Business Today and Marketing and Development Research Associates (MDRA) have completed this year’s survey of India’s Best B-schools—the 25th edition overall and the 12th in collaboration with MDRA.
And for the fourth consecutive year, IIM Calcutta has secured the top spot among institutes offering the two-year MBA programme. ISB also retains its leading position in the Executive MBA space, while upGrad and IIM Ahmedabad continue to dominate in edtech and short-term executive programmes, respectively.
However, despite the top B-schools retaining their ranks, challenges are mounting. In an era where digitisation and Gen AI are poised to reshape the corporate sector, B-schools have a crucial role to play in bridging the skills gap. The lacklustre placement outcomes this year are a sign of deeper structural issues. Clearly, there is a shift in the global economic narrative—from protectionist policies aimed at keeping jobs at home, to the disruption caused by Gen AI, and the rise of sunrise sectors like electric vehicles, renewables, and climate-focussed sectors. Start-ups are also challenging the conventional ways of doing business.
“Every company, whether small or large, is capturing vast amounts of data. Analytics has become central to all initiatives that companies are undertaking,” says Prabina Rajib, Director at Birla Institute of Management Technology (BIMTECH).
So far, the industry’s response has been mixed—some choose to fight aggressively, others are exploring collaborations, while some are simply ignoring the changes. How are B-schools gearing up to address this issue?
The Placement Challenge
A recent study by Bank of Baroda’s research unit found that the headcount growth rate fell to 1.5% in FY24, compared to 5.7% in FY23 (see box ‘Hiring Slowdown’). Puneet Arora, Managing Partner at HR services firm Biz Staffing Comrade, says campus placements at both engineering colleges and B-schools have been a cause for concern. “The IT and consulting and even manufacturing companies are getting a little nervous about their ability to forecast with confidence revenue growth and maintain their margins and bottom line,” says Himadri Das, Director General of International Management Institute (IMI).
Another key issue is the growing skills gap between academic training and industry requirements. Dhriti Prasanna Mahanta, Vice President and Business Head at TeamLease Degree Apprenticeship, says this mismatch is evident in the placement scenario at IITs, where the percentage of unplaced students has risen significantly.
Incidentally, almost all companies are investing, researching and exploring the impact of Gen AI. “This will significantly impact traditional job roles that management students typically pursue. Many of these roles will become redundant, while new job responsibilities will also emerge,” says BIMTECH’s Rajib.
What Do Companies Want?
Hiring trends across industries are gradually shifting, leading to a demand for more technical and cross-functional skills over traditional qualifications like an MBA. Companies now hire individuals based on job description rather than educational background. “This shift is particularly evident in smart manufacturing, retail, logistics, and aviation sectors, where automation and AI have created a higher demand for engineers, IT specialists, data analysts, and supply chain experts,” says Mahanta.
“There is a shift in traditional marketing principles... MBA graduates specialising in marketing must now have a deep understanding of SEO, SEM, social media marketing, and other digital strategies,” says Rajesh Bharatiya, MD of Peoplefy, a staffing company.
Das says companies prioritise the ability to apply knowledge. “With the pace of change today, there’s no longer the luxury of time to teach application skills.” The changes in hiring practices are about building a workforce that is agile, diverse, and capable of meeting the needs of a tech-driven world, says Mahanta.
In the financial services sector, there is a growing trend of hiring more engineers than MBAs. “This is due to the increasing need for skills in data analysis, risk management, and cybersecurity. Banks are using big data to understand customer behaviour, develop new products, and manage risk,” says Deepak Malkani, Co-founder of consulting firm IndusGuru. “Recruiters are also turning to undergraduate colleges, seeking individuals with strong backgrounds in economics, psychology, and commerce,” says Rajib.
Experts suggest that B-schools need to understand the changing talent requirements. For instance, Kotak Mahindra Bank has created a senior-level post of ‘Chief of Customer Experience’. Similarly, IT firms such as Wipro and HCL have appointed Chief Growth Managers. “You need to reverse-engineer the skills your students have so that they fit into industry needs,” says Nitish Jain, Founder and President of S.P. Jain School of Global Management.
Reimagining Business Education
Traditional B-school curricula may not always align with industry demands. There is a need to revise the curriculum at least every two to three years, suggest experts. “You should bring in business practitioners to sit down with you and review the curriculum,” advises Das of IMI.
Some B-schools have already started the process. For instance, Noida-based BIMTECH has completely overhauled its curriculum after intense brainstorming with faculty and industry. This has led to changing several compulsory subjects. For instance, subjects like Python and ESG are now mandatory. “We are mandated to have 20% of any subject taught by an industry professional,” says Rajib.
Raman Ramachandran, Director & Dean of K J Somaiya Institute of Management, says his institute has created a position called “Experiential Learning Manager” and hired a person with industry experience to engage with industry, identify problem statements, and have students work on them.
“The global AI wave presents Indian B-schools with a choice. We can either ride this wave or be swept away by it,” says Jain. The main challenge is figuring out how to teach using Gen AI and how students can best experience it, say experts. “We at NIIT are constantly updating the curriculum to prepare students for Gen AI by embedding it into all courses,” says Mita Brahma, National HR Head at NIIT Ltd.
But all this requires funds. “IIMs are no longer supported by the government. We fund our operations primarily through student fees and, to some extent, executive education,” says Kunal Ganguly, Dean of Development at IIM Kashipur. There’s also pressure to generate revenue from executive education. But increasing fees is a challenge as B-schools already charge high amounts.
Enter certificate courses—from digital marketing to data analytics—marketed by edtechs. According to estimates, there are currently about 600 such courses being offered by IIMs and other premier institutes across India. However, Jain of S.P. Jain feels edtechs dilute the brand image of B-schools. “They are useful only for increasing revenue at the low end, but they detract from the prestige of a degree-awarding institution,” he says.
Students’ Survival Guide
B-schools also need to accept students’ media consumption habits. They no longer prefer reading as much as they prefer watching videos or listening to podcasts. Platforms like Coursera and edX, that have the largest MOOCs (massive open online courses) globally, offer high-quality video content that aligns with this generation’s media preferences. “Partnerships with MOOCs will go a long way in democratising education, especially for B-schools that struggle to attract top faculty. Even lower-tier B-schools that cannot hire high-quality professors can benefit from these collaborations,” says Das of IMI.
At IIM Kashipur, the institute has reduced the duration of a class from 90 minutes to 75 minutes, “because we realised that 90 minutes is too long to hold a student’s attention”, says Ganguly.
“To place the entire responsibility on academic institutions to produce brilliant professionals is also not correct. It’s just that the industry’s requirements are changing much quicker and faster than academia can adapt,” says K.S. Viswanathan, Strategic Advisor at Peoplefy.
Students, too, must realise that pursuing an MBA is not a passport to a cushy job. “It is imperative for students to stay abreast of the latest trends and acquire relevant skills to enhance their employability,” says Arora of Biz Staffing Comrade. This could mean pursuing additional certifications, engaging in continuous learning, or gaining practical experience through internships in innovative sectors.
Finally, the dominance of engineers in B-schools is likely to return, with the growing demand for technical and analytical expertise. “A business school is at best the beginning of a transformation journey. It is important to recognise that you are here to start that journey, and when you leave, the transformational journey must continue,” says Ramachandran of K J Somaiya. Are you ready?
@anandadhikari