Tag: International MBA

What’s the Return-On-Investment of an International MBA?

Going abroad is expensive, but does the long term return justify it?

Although money isn’t everything, it surely is a major factor for your career choices. You could choose to do a MBA program for a number of reasons, but being able to progress in your career and pulling a heftier paycheck is certainly part of that decision.

 
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Warren Buffett once said the single best investment you could ever make is in yourself. He himself went to Columbia and encouraged students to heavily invest in their skills and spend their 20’s learning before starting a career.

 

Before you start your journey to sign up for an entrance exam and apply to b-schools, you probably want to take a piece of paper and calculate what you get for the amount of time and money invested. Like with other things in life, completing the MBA doesn’t come without some sacrifice.

 

moneySo, when you put the money down today, how will it pay you back in the future and is it really worth it? This paper will pit the tuition fees and living expenses against future expected earnings to see if the ROI is worth it.

 

Note that this analysis is purely based on financial aspects of studying this course abroad. The life experiences you are likely to get, the professional network you develop and the learning experience in a foreign land are all excellent reasons for joining a course abroad, but we can’t really break those experiences down into numbers, so this study will focus only on expenses and income.

 

ROI

Breaking down the return on any investment is a crucial skill for your MBA as well. Later in your career you may be expected to calculated the ROI for a stock, a new piece of machinery or some property your client wants to invest in, so this sort of exercise really helps.

 

Now, every business school is different and every MBA has unique circumstances, of course, but major publications like Forbes and the Economist do try to rank business schools according to ROI for alumni. Forbes does a survey once every 15 years and it’s most recent list in 2015 put Stanford on top.  The Economist put HEC Paris on top because MBA alumni earned more after their course than before it.

 

All these surveys are conducted from different perspectives and tend to average out the pre-MBA and post-MBA earnings. So if you live and work in India, do a course abroad and get a job in another country where they pay better, your personal ROI could end up being quite different. So it is essential that you consider your own life goals and study objectives before calculating the returns.

 

To accurately measure the ROI of your course you need to pin down how much it costs you to study, how much of your salary will you be sacrificing to do the course and the cost of living in the country you choose. Then you need to decide if you are likely to look for jobs abroad or head back to India, and calculate the difference in salary.

 
MBA salary

What you are likely to observe

As mentioned before, the ROI of a course depends on your unique situation, but there are some logical conclusions you can make before you start.

 

costsCosts: You already know a foreign MBA is likely to cost you more than completing the course in India. Tuition fees are higher and the cost of living is potentially higher as well. But many countries allow you to work while you study and that would make a serious difference to how much the overall course costs you.

 

PRE and POST SalaryPre and post salaries: Assuming you leave a job in India and pursue one abroad, you are guaranteed to have a great ROI. Indian wages are some of the lowest in the world and post-MBA wages are likely to be higher than median incomes of even the most developed countries. 37% of MBA grads who study and work in India start off with a 3 lac salary.

 
FinanceFinances: There are a ton of options if you want to finance your studies and can’t come up with the upfront payment. Foreign banks are likely to offer you a great deal with lower interest rates and you should see breakeven in just a few years if you stay back abroad and work there. However, coming back to India after completing MBA abroad will mean your ROI equation changes dramatically. Even at the best salaries you may struggle to pay back student loans, so your best option is to spend a few years working abroad.
 
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opportunity costOpportunity Costs: Going right into MBA after graduation is still an option for many, but a lot more people are opting to get some work experience first. The average MBA student has at least 3 to 5 years of work experience and wants to complete the course for that added boost up the career ladder.
 
But if you go for a full-time course abroad, you have to factor in the opportunity costs of missing out on work you already have. As we’ve mentioned before, Indian salaries are pathetic, so transitioning from a salary here to a starter package abroad will work out in your favor. But if you have a great career, with lots of options to excel and earn tremendously well right now, your opportunity costs are a lot higher and that will, no doubt, shift the equation.
 

All things considered you are likely to see returns on your investment in an international MBA relatively quickly. Don’t be put off by the initial expenses and keep the bigger picture in mind while making your decision. Whatever you choose, make sure to consider all the variables and pick the best fit. Good Luck!

 

What Career Options Do You Have After an International MBA?

Boosting your career options is probably your top priority when you sign up for an MBA program. The program is almost as grueling as it is prestigious, and you will need to invest significant time and money if you want to complete it, so seeing the career light at the end of the tunnel is genuinely motivating.

But perhaps it’s a good option to start your journey by looking at the kind of career options you are likely to have after completing the course. Gaining an MBA will certainly improve your pay regardless of where you are based, but seeking an opportunity abroad is about more than money, it is about experience.

What jobs can I do with an International Business Degree?

Have you taken the GMAT before?

So it makes sense to analyse the results of the annual Corporate Recruiters Survey carried out by the Graduate Management Admission Council. In their recent report these were the most likely industries to hire MBA :

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All the employers in the survey were likely to expand their businesses over the coming years and were looking for more MBA grads to join them than ever before. The median starting salary for an MBA grad in the United States is $100,000 and many of the employer’s (31%) say they are likely to increase the wages for MBAs at the rate of inflation or above it this year. good-luck

56% of the employers contacted in the survey said they had an internship program for MBAs and 85% of those interns were offered full-time jobs at the end of the internship.

So, the job market for MBAs seems resilient and is actually expanding despite the global economic environment. But what sort of careers could you expect after an international MBA?

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One of the most enticing benefits of studying abroad is a chance to gain some experience working there too. Millions of students from the country leave every single year and seek out opportunities on foreign shores. The UK, US and Australia have always been the most popular option, but recently graduates have been more keen on expanding their horizons and going to frontier markets or less popular developed countries. Many look for jobs in Germany, France, Italy, Hong Kong, Singapore and denmark.mba-grads

There surely is a shift in preferences for recent MBA grads looking for jobs abroad. Many are shunning developed markets to gain more experience and deal with bigger challenges in countries that haven’t been fully explored in an economic sense yet. dubai, Brazil and China are increasingly popular with recent MBAs .  This could be because the opportunities are better in many of these countries as the economy develops faster, or it could simply be an issue of immigration. european and American policies on international migrants have shifted dramatically since the ‘08 crisis and the refugee crisis in europe. GMAC found that less than 23% of employers in europe had plans to hire foreign MBA grads, the proportion was much higher in the U.S., but limited H1B visas have put a cap on the number of recent grads who get through.
That’s not to say you should try to move to these locations, the job market is still relatively open for people with high skills and considering the impact a talented foreign labour market can have on a country’s economy . Almost every country on the planet has a special immigration route reserved for highly skilled and well educated migrants, and the MBA program is well regarded everywhere.

companies plan

Indian and foreign companies understand the value of hiring a global workforce and the cultural benefits of having a diverse group of MBA grads as part of the team. Indian companies like Wipro and Infosys offer their employees a chance to work abroad for a while just to gain experience and the chances are higher if the employee has an international MBA.
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The GMAc Recruiters Survey from 2015 found that almost all the major firms were looking to hire MBA and most of them were keen on hiring foreign nationals. The companies that were much more likely to hire international MBA grads were also much more likely to be huge multinationals. The larger companies had more diverse operations and were able to get a more global workforce involved.
There were some minor concerns, such as the expenses, legal paperwork, country-level visa requirements and future uncertainty, but most employers were optimistic about the future, especially in the Asia-Pacific region.

Marcelo Barros, author of The International Advantage, understands the issues faced by large global firms, but suggests that companies are willing to overlook regulatory issues when they want an applicant really badly. When there is less domestic supply for technical talent companies look to hire foreigners with the right skill set and are also willing to pay a premium to hire these individuals to plug the skill gap in their organization.

His recommendation to MBA grads and those looking to complete the program abroad is simple – invest in yourself and work the international job network some remarkably good opportunities. Communication skills are a desired trait amongst international firms, so those who can speak English along with a foreign language fluently and have a way with words are likely to be considered. Gaining an MBA from a top b school is likely to improve your chances even more.

The rest, as always, comes down to personal preferences. You may have family in Thailand, or want to live in new Zealand or are attracted by the cost of living in Poland. Moving to a foreign country is always a deeply personal choice, but having an international MBA greatly improves your chances in the long run.

Schedule a 15 minute free session with our study abroad admissions consultants and get your profile evaluation done today.

Here’s Why You Should Probably Ditch CAT for a GMAT Instead

Hundred of thousands of people across the country register every year for the Common Admission Test (CAT). Last year, the registrations hit a surprising 218,664 candidates  (That’s dropped from the years before, but more on that later).
 
It’s easy to see the need for this entrance test – millions of young Indians are trying to set themselves apart from the crowd and get an MBA from a prestigious university in the country. It opens up job opportunities which may not be available to an ordinary graduate or even a post-grad.
 
But for all the hard work and effort that goes into clearing CAT, does it really deliver the best possible career path for someone who wants to get into investment banking, consulting or marketing? Perhaps students are miscalculating the returns they are likely to get.
 
Issue with CAT
 
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But that’s not an issue for enthusiastic young people trying to launch a career in India. If anything, tougher tests are a better way to set yourself apart from the ever expanding pool of applicants for jobs in this country. Another potential factor is the increasing popularity of the GMAT, the Graduate Management Admission Test offering better prospects to MBA aspirants in comparison.

why-gmat-is

There are, no doubt, a number of personal or professional reasons people prefer one entrance exam over the other. But for people considering one or the other, GMAT stands out as the better option. Here’s why:
 
Global perspective :
 

GMAT scores are accepted at business schools spread across the world. From harvard to Mumbai’s NMIMs, from Finland to Liberia, GMAT scores are considered for new applicants regardless of where they come from. The test opens up more than 1,700 universities4 , which includes all the top business schools in the world. CAT, on the other hand, severely restricts candidates primarily to India. It’s understandable that a lot of students clearly prefer to study in India rather than abroad (mainly due to cultural or financial issues), but this means there are far more students chasing far fewer seats at the country’s limited universities. Only three Indian business schools make it to the top 100 MBA schools on the planet (IIM Bangalore, IIM Ahmedabad and ISB). It is not be noted here that these three institutions also accept GMAT scores.

 
Wider Acceptance :
 

Let’s be honest, the word ‘learning’ has different connotations in different parts of the world. In India, solving tons of incredibly hard math questions and proving you aced your 10th, 12th and graduate degree is all you need to get into a b-school. The CAT is structured around rote learning and math skills, or in other words it is structured the same way many of our public schools are. Two-thirds of the coursework is based on data interpretation and quantitative aptitude. even the last one-third that’s left for verbal skills is basic grammar and syntax questions. GMAT, on the other hand, is a more wholesome experience. even learning the coursework is likely to actually improve the way you understand something, explain it with a well written essay and correcting the structure of a badly written paragraph.

 
Test Timing :
 
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CAT can be taken once every year. If you miss the chance, fall sick on the day of the exam or simply fail the test, you have to wait a whole year to retake it. GMAT isn’t designed for students fresh out of college and is a lot more considerate. You can take the test multiple times a year and also repeat it after a 16-day period.

 

Score Validity :

After tons of hard work and preparation passing the test comes as a major achievement, but how long does that success last? CAT scores are only valid for the year. That means you must apply to institution you want or are eligible for as soon as you can. Your only other options are to retake the test next year or give up on the MBA program altogether. GMAT test scores are valid for up to five whole years.
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International MBA :

Finally, learning to run a business or fulfill a role in marketing involves more than simply reading a book. Life experiences are just as, or arguably even more, important than learning the tricks of the trade through lectures. Let’s be clear, the curriculum is very much the same no matter where you do your MBA, but the difference lies in the way the course is structured and taught7 . Foreign universities tend to have a more practical approach to learning and there is a lot more emphasis in gaining ‘real-world’ exposure.
 
Considering all the reasons and weighing all the options you should probably go for a GMAT instead of CAT.