Edtech MBAs: Once the future of education, now falling short of career promises?

Sen’s experience bears testament to the now established trend of continuous learning for working professionals as companies look to upskill existing employees to keep pace with the ever-changing requirements of the dynamic workplace.

Of course, individuals too are joining MBA courses offered by edtech companies in partnership with established colleges as they try to catch the changing tides of the new workplace in the hopes that it will lead them to fortune.

In the case of individuals, they are often enticed by the prospect of gaining a degree from a global university for a fraction of what a normal MBA programme would cost. Besides, they can do it all from the comfort of their homes.

Numbers are hard to come by in this relatively new segment, but edtech companies say that there certainly isn’t any dip in demand. Anecdotal evidence from working professionals, too, indicates that they are willing to join such courses in light of the deep uncertainty that has set in over the past few years, with the increasing preponderance of technologies like artificial intelligence raising concerns of redundancies.

These courses have also received a boost with the University Grants Commission (UGC) allowing top-ranked autonomous colleges, recognised in the National Institutional Ranking Framework (NIRF), or institutions with high grades from the National Assessment and Accreditation Council (NAAC), to offer full-degree programmes online without needing prior approval.

But as the initial enthusiasm has subsided, the question that is being asked with increasing frequency is if these courses match up to the traditional offline ones. This comes at a time when placements even at reputed B-schools have slowed and salary packages have become thinner.

That is where the two tracks seem to be diverging—recruiters aren’t rushing to hire people who do such MBAs, but companies are seeing value in equipping their staff with more skills. Equally, individuals now have to decide if they want to invest more than a year to pursue an MBA, albeit remotely, or opt for shorter skill-based courses.

Vishwanath Pingali, Professor at IIM Ahmedabad, classifies online programmes in two categories: skills-based and perspectives-based courses. While the skills-based courses include training on artificial intelligence, cloud computing, analytics, etc., the management courses belong to the second category. “Though the current market trend is more inclined towards the skills-based training, there is still a strong demand for the management courses, especially executive courses,” he adds.

Employee Evaluation

A platform like Coursera, which has been ranked second among the edtech firms offering MBA in the BT-MDRA India’s Best B-schools Survey 2024, provides an online or eMBA to the working professionals in collaboration with IIT Roorkee for Rs 11.5 lakh. Coursera says the fee may go up to Rs 20 lakh in the case of international institutions like the University of Illinois at Urbana-Champaign (the US). In comparison, course fees for mainstream offline MBAs start at `16 lakh in newer IIMs like those at Bodh Gaya and Sirmaur and may go up to `27 lakh for the top-rated IIMs.

If one looks past the course fee, though, recruiters are reluctant to view eMBAs on par with offline ones. George Thomas, Group Chief Human Resources Officer at MSP Steel and Power, says online MBAs are good as long as they help in promotions or if they involve learning a skill set for a certain position. “We hire people with online MBAs only when he/she has certain years of experience or skills required for the position. Otherwise, during résumé evaluation, full-time MBA holders get more preference,” he says.

Thomas adds that companies prefer such courses since they help firms upskill existing employees and help them avoid hitting the markets in search of expensive recruits. It’s only when an MBA is considered vital for a promotion that MSP encourages employees to take the course.

Echoing those views, the assistant vice president at a global commercial bank, who did not wish to be named, says edtech MBAs are ornamental for people sitting towards the top of the pyramid. It neither helps candidates change jobs nor adds value to the resume. According to a senior manager of a global telecom service provider, recruiters often subconsciously choose regular degrees over edtech ones. However, if the candidate possesses valid work experience that may take precedence in the assessment, the person says.

Besides, an eMBA may not be enough by itself to help people change their career path, something that is possible with an offline MBA. The senior manager says for senior positions, recruiters seek experienced candidates. “Pursuing an edtech MBA just for a career switch may not be effective.”

Constant Improvement

Edtech firms are aware of some of the shortcomings in the MBAs they offer, but they are constantly improving what is on offer. This they do by seeking feedback from students who are undergoing courses and those who have completed them.

Besides, they are also constantly on the lookout for better partner universities. That is evident in the fact that edtech firms have partnered with the elite IIMs to offer an estimated 600 courses on various topics. This is important because the return on investment, calculated as a ratio of the average course fee and average domestic salary, of the top B-schools in India has seen a considerable dip in the BT-MDRA survey this year.

One example of edtech engagement with students is a survey conducted by UNext Learning, which offers a global MBA in collaboration with the Swiss School of Business and Management Geneva. It found that 62% of alumni reported that they saw an improvement in their overall job performance, 78% expressed a deep sense of personal accomplishment, and 61% felt empowered to take on leadership initiatives at work.

UpGrad, which has topped the BT-MDRA ranking in the edtech category, claims that learners of the programmes it offers come at an average salary of Rs 8 lakh per annum, and once they complete the course get high increments, about 50-55% in some cases, potentially delivering better ROI than traditional colleges.

Mayank Kumar, upGrad’s Co-founder and MD, explains that the edtech unicorn has adopted a blended approach of 30% live class experiences and 70% recorded lectures, alongside industry-driven assignments, quizzes, games, and group projects to improve outcomes. “This comprehensive approach ensures that our learners receive the most up-to-date and practical education, preparing them effectively for the job market,” Kumar notes. He says the programme has an 80% completion rate and a 30% referral rate year on year.

He says learners also achieve significant milestones, such as promotions or new job roles, within six to 12 months after completing the programmes. “Additionally, five out of six learners get positive career growth, thus establishing the credibility and mettle of the online higher education and skilling segment in India and globally,” Kumar adds.

Like regular B-schools, these firms also rope in industry leaders to prepare students for the job market, says Krishna Kumar, Founder and CEO of edtech firm Simplilearn. “To top it up with classes from top-tier university faculties, we have collaborated with the likes of MIT, IIMs, IITs, and Caltech,” he says, adding tha Simplilearn also ties up with top MNCs, industry leaders, experts, and academia to stay abreast of emerging trends, advance its capabilities in response to evolving technologies, and refresh its syllabus every six to nine months.

Job Training

A work landscape where roles are being made redundant at a fast pace and replaced by newer ones has thrown up challenges not just for edtech firms but also for the marquee B-schools. That has also forced both to embrace each other to offer students a rounded experience by providing a thorough theoretical understanding of the business world along with training in the most sought after skills in the job market.

By bringing in the best of both worlds, such courses have become sought after by companies for in-house training. Bikram K. Nayak, Chief Human Resources Officer for Alumina Business at the mining and technology conglomerate Vedanta, says companies reward those who put in their best efforts to meet the needs of the evolving workplace and hone their managerial skills. “This turns out in favour of the employees during evaluation. Thus, companies like Tata, L&T, and Vedanta, among others, have successfully embedded work-integrated learning programmes for their employees.”

But even for those who are not pursuing in-job training, edtech firms are trying to provide deep insights into the job market. UNext’s CEO, Ambrish Sinha, says that offering regular one-on-one mentorship, academic counselling, and peer networking opportunities are essential to building a sense of connection and purpose.

Kumar of upGrad feels that the future of eMBA programmes in India remains promising, despite the post-pandemic shift towards traditional education models. According to him, the biggest challenge edtech programmes face is the constant struggle for the working professional’s attention as they juggle work, life and classes. These firms have tried to address some of those challenges. For instance, upGrad offers human intervention to accelerate or augment the overall learning process. “For example, if a learner does not sign up onto the learning platform for a week or is facing challenges in keeping up with the project timelines, our mentors track their progress minutely to support them with the best possible solution and navigate through,” he adds.

According to him, traditional degrees still hold value, but employers are increasingly recognising the practicality and relevance of online management certificate programmes, especially for upskilling and niche areas. According to Kumar, this trend will continue to influence how companies recruit and promote employees. “Online certificate programmes in India will likely co-exist with traditional education, serving different needs—particularly for working professionals and learners who prioritise flexibility, affordability, and skills-based education,” he says.

But one thing students must remember is that these programmes are offered in collaboration with the universities. Rajat Agrawal, Professor at IIT Roorkee, which offers an online MBA programme in partnership with Coursera, says, “Edtech companies can’t independently run such degree courses.” So these courses are as good as or as relevant as the colleges that offer them.

@sudi_journolife