Next wave, going global

 

Globalisation is not a cosmetic it is about mindset which is finally changing global in India’s exclusive b-school pack! 

 

Going global is not just about setting shop overseas, signing up exclusive faculty and student exchange agreements, not even about getting foreign students on the campus but it is about the mindset change, of thinking global, trying to learn how the world does it and learning from the overseas experience, something Indian B-schools on their way to maturity have started becoming serious about. “Globe is already at our door. There is an urgency in   acquiring the tools and skills to be relevant in the changed context”, comments Dr K A Sreekanth, Director HR of Computer Associates.  Agrees Mukesh Aghi, CEO of Universitas21 Global, an on-line MBA institute with participation from a global network of b-schools “there is a paradigm shift in corporate education. Globalization of management practices has necessity to acquire skills to become player of global recognition”.

 

Fueled by an unsatiated demand for b-school graduates, thanks to a recent upswing in the corporate fortunes and also led by their own vision of future an increasing number of Business schools of  India  are reworking their priorities, investing in infrastructure, experimenting with new faculty models, reviewing their governance models, looking at locating in more than one centre, introducing new courses and above everything else  consciously keeping globe as a benchmark.   Unfazed about the small number of students—around 153 to be precise from India’s top 15 school who got international jobs, the Indian schools,  are thinking global. “It is not the foreign jobs, it is mindset change which is going global is what we have to cater to”, explains Prof M L Shrikant, Dean of SP Jain, one of the first Indian schools to go global with a campus at Dubai. 

 

“There is no denying that global work practices are already here and our boys better get to know these”, comments Dr Devi Singh Director of IIM Lucknow says.  Business India’s Reality Check survey of top CEOs and Academics  conducted as part of the current year’s B-school survey programme got an overwhelming vote of “yes” for the question whether  globalization efforts by Indian b-schools would pick up steam in the near future. Everyone also expected that top B-schools would start attracting foreign students, a lacunae that existed for long at out top schools, including IIMs.

 

Business India had been  tracking the growth and development in b-schools  systematically for the last five years through the Best B-schools Survey and we could see that despite the doomsday predictions, the b-school bazaar has been on a spin and it is gathering momentum  with a recognizable group of players  putting in all that it takes to push Indian MBA to the next  level, namely international. For once everyone, whether it is the IIMs, any of the other top ten B-schools, those from the fast growing set  of schools  agree  that  India is ready for a bigger  game.

 

“I would expect induction of foreign academia on Indian B-school boards, global accreditation, foreign students pursuing full time MBA education in large numbers in Indian schools and Indian schools being part of international management training and research programmes”, Prof Pritam Singh of MDI, Gurgaon says. His is no nostalgic dream but something that is achored on hard reality. MDI already has 40 foreign students pursuing a semester of course and the institute along with ICFAI of Hyderabad  are the first two schools to get global accreditation with the efforts already underway .

Indian schools sets shop overseas

 

The year 2004 marks the milestone  in the Indian B-schools when the first tentative steps were taken by the Indian b-school community to actually found campuses overseas. XLRI, Symbiosis, SP Jain and ICFAI set up their campuses overseas—the first three at Knowledge Village Dubai and the last institute at Sri Lanka—while the fourth one IBAT of Bhubaneshwar would have opened its campuses at Nepal and Mauritius by December 2004. “The campus has been chosen and the MoU with the governments of both countries has been signed. We would begin with executive MBA programmes in both campuses from December”, informs Dr Samantha, Vice Chancellor of KIIT University, which runs IBAT. Even the IIMs are not far in the race. The first one off on its  videsh yatra is IIM Lucknow which  is talking to Sri Lanka government. Not to be outdone, MDI, Gurgaon  is looking at all neighbouring countries, chiefly Sri Lanka to set shop. 

 

“It is only natural and in the scheme of things for Indian B-schools to look overseas for their next wave of expansion”, comments Wharton professor, Vipin Gupta. He is excited that the Indian b-schools , at least the few which are  in the quality race are showing signs resembling the global schools almost in all respects.  For people like Vinay Pasricha, co-founderof Wigan Leigh, one of the first to bring the global education into India and also one of the few foreign schools to survive  competition and grow spectacularly over the years in India, global mindset is the only winning factor. “The country specific strategies are there but the mindset has to be global. Our UK model of education has been working successfully India”, he adds. Wigan has campuses at ten Indian cities with a overall student strength of  over 2000 students.

 

Overseas experience

 

  “our experience has been fulfilling to say the least”, comments  M L Shrikant, Dean of SP Jain, the first Indian private B-school to set up a full fledged campus in the familiar overseas destination Dubai. The indomitable Symbiosis brand  of Pune also now has a presence at the Gulf with the first school bearing its familiar label set up in the Knowledge Village of Dubai. The head of Symbiosis Majumdar is happy that Symbiosis has now become  an international player. His  vasudeva kudumbakam,  he hopes would spread to other parts of the world as well.    Even   IIM Calcutta   and XLRI  which already had a foothold with a joint venture arrangements  in the Gulf to float their  courses have further consolidated their presence in this growing Emirates education hub.

 

Gulf may a good beginning, even though Europe and the US still appear to be a distant dream for the Indian B-schools.  “The near east has several advantages, among which the large Indian population as a captive source and support base”, explains Prof Shrikant.  While Gulf has already started being mined, the Indian B-schools sense big ticket opportunities in hitherto neglected neighbourhood, namely the SAARC nations. “SAARC is where we would like the Indian engineering colleges and the business schools should go and we would support by every means”, says a senior official of the Ministry of Human Resources Development (MHRD).  

 

 ‘I am just back from the tour of Europe and  the US. There is a lot of excitement out there about what we are doing, not just ICFAI  but about the Indian  B-schools” gushes, Panduranga Rao, Director General of  the multilocation ICFAI Business School, Hyderabad, part of ICFAI Unviersity. ICFAI opened its first campus at Sri Lanka earlier this year. “we went as a delegation from ICFAI to meet with President of Sri Lanka, Chandrika Kumaratunke and she has promised all assistance”, Rao says. The business model which the ICFAI has at Sri lanka was perhaps the cheapest with the fees being charged equivalent existing Idian fee structure, rather than dollar based international fees which may not be sustainable, the University management feels.

 

“our next stop is Sri Lanka”, is the pithy rejoinder of  the youngest director of any IIM, Dr Devi Singh, from IIM Lucknow, who is quite excited about the possibility of  taking his institute out.

 

Singh’s mentor Dr Pritam Singh of MDI, known as a serious risk taker, sees overseas adventures in a more sober light. “Our approach will be to strengthen our offerings matching with the best in the world, get this endorsed through global accreditation. Teams from AMDISA and  EFMD have already visited the campus and the institute is also looking at AMBA for its endorsement. “We have also received feedback that to be truly global school we would need to get AACSB endorsement as with other global schools”,  says Dr Pritam Singh  “without international accreditation there would be no credibility for your  diploma’, Singh says emphatically. 

 

Learning from the world

 

It should also be said that like the schools themselves, the views about what one would learn from the  world is as varied and as bizarre as one can get. For some it is about faculty “we have aggressively gone ahead to acquire faculty with international credentials to align with the world”, states Sushil Kumar, professional Dean of Amrita Institute of Management, one of the fast and upcoming schools in the distant south.  For  of IBA Bangalore, globe means understanding cross cultural issues which is the underlying theme of education in his school.  IIFT sees renewed global thrust means knowing about the all important WTO. A centre for WTO has been set up which designs and delivers courses on WTO to its students, besides  actively assisting the bureaucrats to know about  WTO compliance

 

For others getting foreign students on the campus is the litmus test of having gone global. “We have 40 students on campus who will study for a semester at the institute”, informs Mukul P Gupta , Dean Continuing Education and international linkages of Management Development Institute, Gurgaon.

 

Dr Reena Ramachandran of Fortune International School based in Delhi and Dr Venkat Ratnam of Gitam Institute of Foreign Trade of Vishakapatnam, two of the fast growing b-schools preparing their students for the global game, the challenges are quite clear. “We have built world class facilities at our Vizag campus, increased our faculty strength, developed links with a number of top global corporate players including banks, forex companies with a view to provide hands international education to our students”, Venkat Ratnam says.  Reena Ramachandran’s years of experience of PSU boss has taught her the need to think big and recognize the changes taking place in the corporate world. “It is international or nothing”, is the crisp comment of Ramachandran.

 

 

 

Indian global campuses

 

Indian School of Business (ISB) set up by a consortium of top Indian corporates and wold’s  high ranking  b-schools, Kellog, Wharton and London Business School.   may have been the first to sink over a US $ 100 million in its world class infrastructure at Hyderabad. But around the country, B-schools are ploughing huge investments in creating infrastructure, hostel facilities, elaborate library facilities, large auditoriums, lecture halls, providing wei fei  lap tops to its students, with an eye on future.  

 

   Instances like the  Pune  based IIMM developing a massive Rs 30 crore project  in its 20 acre plot, or the swanky new facility in which the  Cochin based SCMS has moved into just weeks ago, the world class new campus of Welingkar, Mumbai bristling high tech gizmo, or the truly world class facility at  a   school of business at Lucknow, or the posh “white house” a classic structure in an otherwise ancient neighbourhood of the Heritage city Varanasi of SMS, are more a rule than exception for schools on their way to becoming world class. “we have planned  for massive expansion which we expect to take place in our schools” explains Col Balasubramaniam of IIMM.

 

“My own experience is that without good infrastructure, spacious and airy class rooms, excellent hostel facilities and all other creature comforts, it would be difficult to conceive a good business school”, explains Prof M S Pillai former Director of SCMHRD and now the proud founder of a new school for business SCMLD based in Pune.

 

The other view

 

Unfortunately not all schools could be on such growth path. In fact the percentage of schools thinking global, sprucing up their act  and investing heavily into their future is quite minuscule.  The Indian corporate  and academic leadership do not think that no more  than 10 per cent of around 1000 odd schools working in the country would  qualify  for any recruitments from them   “I would think perhaps 20 to 30 schools alone matter”, comments Pavan Chaudry, country head of the French pharma MNC, Vygon.

 

What is happening on the ground  is consolidation and clear cut segregation of schools  which CAN DO  and the rest which are continuing to be mere shops. Many schools from the nineties  era are showing sure signs of maturity with multicrore campuses, good faculty numbers, a business plan which is less and less dependent upon fee income—at least from MBA students. Equally they are suffering for want of quality faculty, good curriculum, clear direction, while the market is lapping up whatever they would produce.

 

Neelesh (name changed)is busy having his bath. while I wait. His paraphernalia of Armani suit, a well polished set of leathers, shoes & Belt is  lying scattered about, three or four shirts with matching pants and a dozen or more ties, all are spilling over from the over stuffed weekender on the spotless bed in the five star hotel  room he is staying. “It is all about image, Mr Raman, I have to give the guys the right impression about our school”, Neelesh says tapping his fingers nervously on the table.

 

Nervous he should be as it is his big day when he has called the Capital’s dozen or so top recruiters to table to give his  jazzy presentation about his  school over the choice of liquors the hotel can provide. At the end of the  session he may or may not have  word of assurance that one of the guys present at least would send his team to his campus for recruitment. Neelesh runs one of the most modern MBA schools in the back of the beyond Meerut touted as education hub of Uttar Pradesh.

 

Cut to MDI Gurgaon Campus, a sheepish Chairman of State Bank of India  who is also the Chairman of the Board of Governors of the prestigious institute admits that “I came hoping to recruit at least 12 candidates but I can get only three”. Even the Chairman of the schools Board! Some 80 to 100 companies  were turned away from top campuses like MDI for want of students to recruit.

 

Neelesh’s school is far younger and even better equipped with airier class room, better gizmo and almost five star hotel type of hostels and his boys proudly carry around  IBM think pads to their class. And  he would be lucky if 20 of his batch strength of 120 would be placed somewhere, anywhere.

 

Welcome, the mad mad world of Indian MBAs, which is all set to go global.  The Indian B-school bazaar is all decked up and ready offering a variety of wares, and yet the big boys know where to source their manpower,  the big b-schools, with a strong legacy of performance and of course all of them owned by the government and heavily subsidized while Neelesh’s of this world  who would have put in his own money and that of the banks and financial institutions, borrowed at very heavy interest rates with no hope of recovering  his investments in the straight way.    Neelesh like those of his ilk, is a  deft magicians, playing with education  ware offering every kind of menu for education hungry, past master in hoodwinking, subterfuge and overplay. The game is survival, any thing goes.

 

 

“The director said  the MBAs fetched Rs 7.5 lakh per month salary. He even showed us press cuttings. The school had an impressive building, plenty of lawns, well appointed hostel rooms, beautiful classrooms  and very smart young teachers. I spent Rs 4 lakh on my son’s MBA and he is still on the streets”, P.R. Sawhney from the suburbs of Roorkie rues his day when he sent his son  to the business school  in the NCR region of Delhi

 

Sawheny is no uneducated dumbster, he is an executive engineer at the State Electricity Board.and he did try do his homework. But the school had hit him hard, soaked him with  literature, copies of the books of the school had produced, proceedings of international seminars held at the school, plenty of expensive junk, all of which adorn the well appointed library of his living room.

 

The Indian MBA  is  caught in an uncanny web of  seemingly plentiful number of schools, large number of seats, outwardly impressive infrastructure resources, a matching high performance at the placements, equally impressive range of international schools staying rooted in India….  And yet, Neelesh’s and Sawhney’s of the world would vouch that Indian MBA personifies inefficiency, insensitivity, downright callousness of the players, poor quality of faculty and equally scarce number of them, curriculum  unconnected to reality, lacking in research, consultancy driven by  government favours,   choking bureaucracy, sleaze and  total mistrust.  The writing on the wall is clear, globe may be within the reach but it also means accountability, self discipline and a lot more professionalism and seriousness than what the Indian B-school displays. The community has to bite bullet.

 

A.Thothathri Raman