Came across this infographic in my email, worth sharing and something to mull over.
Interesting to note that the incremental costs of a higher capitation does not necessarily translate into commensurate incremental benefits. Is brand value in education at such a premium?
I remember when I was in IIM Indore, the fees were fairly low and I was happy to get into a first grade b-school at less than 4 lakhs INR. These days when I see the fees, I tell the MBA aspirants that forget a b-school degree, the opportunity cost would be too high. Shouldn’t this rising cost of higher education consolidate somewhere and correct its ever rising trend?
What do you think?
In 2003-05, the avg compensation to cost ratio was at least 1.5-1.75. Now it is around 0.9-1. I have had the same thought earlier too. In India its no longer worth doing an MBA unless you get admission to one of the top colleges.
The problem I am realizing is that even with the top colleges, breaking even will take some time. Not to mention that even the top colleges have problems during placements these days!
I guess the article was U.S. centric (I didn’t read the entire thing). In India, things are not as bad as the west since economy is still growing a bit, but then it’s definitely very different since when we graduated. I paid like Rs. 10,000 for a year for Engineering and I can only smile about the ROI. :)
Anyway, IIMs have basically dumped their own heads into the sand. From a seat count of around 100, you cannot take it to four times within 5-6 years but that’s what happened in IIMI and IIMK. That’s basically stupid and definitely doesn’t talk about management sense.. no wonder placements are suffering. I can’t even think of faculty quality and infrastructure issues!
Yep! I clocked around 20k for my entire 4 years of Engineering :-) and that was awesome! A news article in one of the IIM blogs said that the placom faculty made a statement akin to “We are here to provide education, not placements”.