With its wide range of schools from small local providers to internationally recognised institutions such as the Indian Institutes of Management and the Indian School of Business, India is now firmly established as one of the leaders in business education in the developing world. Yet despite being spoilt for choice in their home country, a large number of Indian managers and professionals still choose to study for an MBA overseas. So what, if any, are the real benefits attached to this decision?
One simple yet key benefit that studying overseas can, in some cases, reduce the amount of time you have to spend outside the workplace. Most programmes in the UK and at other respectable European schools such as Insead, for example, are almost half the length of a typical course of study at home. "Location was a key factor when I was deciding where to do my MBA," says Shailaja Pradhan from Bangalore, who undertook her MBA at Cass Business School in London. "I chose the UK over other countries, because I was able to get a world-class MBA in one year. I just wasn't prepared to take two years off, which would have been the case if I had decided on India or the USA."
For many potential MBAs, however, the major motivation for studying abroad is the effect it will have on their future careers and the opportunities it opens up. Sachin Tipnis from Mumbai was keen to use his business school education as a springboard into the rapidly growing Chinese market. He consequently chose to join the MBA programme at the University of Hong Kong where he has subsequently become head of marketing. "I was among the first Indians to do an MBA in Hong Kong but I found the transition first as a student and now in the workplace to be a very smooth one. If you choose right, an MBA can really help you understand the culture, business practices and markets that you are surrounded by."
Rajesh Kothari is another Indian professional who saw an overseas MBA as a way of breaking into a new market outside the confines of India. " The reason I wanted to study abroad was to get the sort of international exposure that's essential for an international career. I chose IESE in Spain because a majority of students have worked outside their home country and more than 60% of them come from outside Spain." Now working for a hedge fund in Barcelona, Rajesh attributes his new career and home base directly to his choice of school. "It's not easy to get a job like this here because of the lack of local experience and the language factor but an MBA from one of the country's major schools certainly helped me to overcome these hurdles."
Opening up the prospect of a truly international, long-term career by choosing a programme outside your home country can also have direct financial benefits. According to the latest edition of the TopMBA.com International MBA Recruitment and Salary Report, which surveys 445 major employers around the world, the average salary for a newly graduated MBA in India from a top school and working for a multinational company is now USD 28,000. The average in the USA and Europe, however, stands at USD 90,500 while the highest base salaries globally are currently in Japan at USD 112,500. And base salaries are just part of the picture. The average bonus for MBAs in international companies is reported as US $23,100, while investment banks are leading the field with average payments of USD 37,500.
Tapping into this lucrative career market will be an obvious incentive for any potential MBA weighing up the pro and cons of study abroad.
