AdmitMBA360 Blog formerly Journey to my MBA

Journey to my MBA

Thursday, April 06, 2006

ISB grads making the dough and then some

This Blog started with a US School focus, but it's all too clear that I can't overlook the amazing things going on across the globe at schools such as ISB. Any Indian who is even thinking about Business School heard about this ISB announcement about the salaries the grads are getting this year. It's amazingly high.

A commentary is probably appropriate seeing as how this one announcement is a milestone in Indian business and education. India was popular for outsourcing for quite a few reasons, but one key reason is that it was always cheaper to do business there because the labor was so much cheaper. The ripples caused by this announcement are the worst sweet and sour dish you could serve. They're loving the money, but the reason for the economic growth was because of the cheaper labor. Where does this leave things now? This could result in waves of US businesses re-thinking their outsourcing plans and current outsourcing projects. If I were CEO or COO of a large US company that needed outsourcing, I'd put everything on hold and call Dean Rao to find out the details of what just happened.

IndiaDaily had to get a word in on this as well.
The Indian School of Business reported on Wednesday a 21 per cent jump in the average international salary offered to its students, with the highest offer crossing a Rs 1 crore annual package. "This year four of our students crossed the salary package of $2,00,000 with the highest offered being at $2,33,800 (approximately Rs 1.04 crore)," Indian School of Business Deputy Dean Ajit Rangnekar told reporters in New Delhi. {Full Article}

This news is really big for Indians.

Without much further delay, here's the article from ISB.


Click here for the presentation made by Dean Rao at
the press conference to announce Placements 2006

Click here for the Placements 2006 Fact Sheet

• Highest salary offer crosses the magic figure of Rs.1 crore
• Women graduates break the glass ceiling

The Indian School of Business (ISB) has scripted a new success story with placements touching new highs for the Class of 2006. Four ISB graduates have bagged offers that have broken the USD 200,000 mark. While the highest salary offer recorded at the ISB is USD 233,800 (Rs. 1.04 crore approx.), the average international salary at USD 120,700 (Rs 53.5 lakhs) is a 21% jump over 2005. On the home turf, the highest domestic salary at the ISB this year stood at Rs. 30.33 lakhs while the average Indian salary is Rs.11.77 lakhs, reflecting an increase of 18% from last year.

The highlight of the placements was that the highest salary offer of USD 233,800 (Rs. 1.04 crore) was made by an Indian company. With the economy booming, this year saw a large number of Indian companies recruiting from the ISB.
The ISB Class of 2006 has 345 students, of which 328 participated in the Placements Process and over 145 companies visited the ISB for recruitments this year. The year also saw some new names like EDS, Tishman Spier, and others recruiting for the first time in India and at the ISB.

Speaking on the occasion, Professor M Ramohan Rao, Dean, Indian School of Business, said, ““I am happy to see that our students have performed well. Our endeavour has been to groom talent that can take on the challenges that the corporate world present in India and globally, and it is gratifying to see that leading companies recognise the strength of our students. I would like to wish my students the very best as they step out of ISB.”

Women students at the ISB break the glass ceiling
The ISB has always encouraged the enrolment of women students into its management programme. Women students in the Class of 2006 represented 19% of the total Class this year. The Class of 2006 saw all its women students participating in the Placement Process. The highest offer made to a woman this year is USD 223,400 (Rs.1.01 crore). The top domestic offer for women students is Rs 20 lakhs while the average salary is Rs.9.89 lakhs. What is significant is the fact that of the four students who bagged the USD 200,000-plus salary offers, two are women, who have been offered Global Leadership positions.
Shilpa Bajoria, Class of 2006 said, “We received a lot of encouragement at the ISB. My stint here has offered me an ideal platform to move on to a leadership role. I am very excited at the avenues which have opened up for me.”

The lure of India and the Indian companies
Indian companies raised the bar significantly making exciting job offers to the ISB students both in terms of salary and job profiles.
An interesting trend that was witnessed this year at the ISB was that an increased number of students have chosen to opt for domestic offers over international offers. Yashraj Erande, Class of 2006, said, “I was offered a very interesting job by a US based technology company. But I knew I wanted to be closer home, working in the increasingly challenging and versatile business environment, and hence I chose a job offer which gave me a chance to play a pivotal role in India.”

Media emerges as a hot sector
While the regular recruiting companies -- Consulting, IT, FMCG, and Banking & Financial services, etc -- elicited a lot of enthusiasm from the participating students, Media companies for the first time made a mark at the ISB this year. Several ISB students opted for jobs with various media companies including ABP, GBN, and RPG Saregama.
Kartik Ramakrishnan, an ISB student who accepted a media offer, said, “I received two offers–a consulting offer, and an offer to help set up an FM Radio Channel. Although, consulting was what I had always wanted to go for, the radio offer is hard to come by straight after B-school. It was a golden opportunity to implement all that I have learnt at the ISB. In fact, it was a trade-off for me as the consulting offer was higher paying, yet I chose the one in the media.”

ISB students make it to the top
The ISB students have been offered several senior management positions such as COO, VP-International Marketing, Head-Marketing, International Country Manager Designates, and others, from leading domestic and international companies. This is a clear indication that companies have given due recognition to both the students’ prior work experience and the ISB’s efforts in grooming them for senior positions.

Dramatic Career Shifts
Several cases of students who came to the ISB looking for a change in their career after several years of work experience and successfully making career shifts were witnessed this year. Some of the dramatic career shifts include: A student who after several years of owning a detective agency has been offered a Vice President-International Marketing position of a leading healthcare company; an Indian Navy serviceman of several years has also now opted for a job in the healthcare services sector. Other interesting instances of career shift are: a doctor becoming a consultant; a shipping industry professional moving to real estate consulting and several others.

It’s not all about money
More than 30 students at the ISB have declined high salary packages in their quest for taking up jobs that find the ‘best fit’ for them. Many students declined lucrative offers and chose better job profiles. Differentials ranged from Rs. 3 lakhs and went up to about Rs. 26 lakhs depending upon whether the offer rejected was a domestic one or an international posting with a dollar salary. This is a demonstration of the economic confidence that Indians are beginning to feel.

This year’s recruitments at the ISB are proof of the ISB edge and reflect how ISB graduates are being treated at-par with the world’s best by both Indian and global companies.


Anonymous Anonymous said...

Hi dave.
I have learnt a lot from you and your blog. But then I dont know you want to put all your outsourcing deals on hold and call Dean Rao.Understanding the Indian phenomenon would take very long to understand. its quite true that india became a destination for low cost and cheap labour, but that doesnt mean that it would remain so.going to the past.. just exactly 100 years ago Hyderabad the city in which ISB is located , was considered to be the worlds richest city. and I would not be , and you also should not be surprised if in next 50 years it again reaches that position.
Now comming to the point that India contains only cheap labour well, incase you become a CEO do lemme know if u you escape from doing business in india. India maybe a cheap labor destination but also has talent that almost no other country in the world has.

9:02 PM  
Blogger Julius Seizure said...

I guess the first anonymous poster has misinterpreted the tone of your post as slandering India. Anyway, the highest salaries awarded to ISB graduates is for placements outside India. The highest salary for placements within India would be in the neighborhood of Rs.20 lacs = approximately US$40-50k which is not a lot for an MBA grad from a reputed university in America. And, the cheap labor sought by american corporations is mostly in the engineering domain which still remains cheap compared to engineering salaries in the US.

9:25 PM  
Blogger laserlikefocus said...

I should also reiterate something which the anonymous poster hinted at. Many companies are opening up facilities in India because of the market there and not because of labor arbitrage. All the telecom majors Nokia/Ericsson/Motorola have announced huge investments in India and they are not driven by lower costs. They are driven by a rapidly growing market and a labor pool which in most (not all) areas is as good as the one in the US.

8:10 AM  
Blogger Dave for MBA said...

Good comments all. I remember Enron built that plant in India and they lost their pants on that deal because nobody could afford paying the prices for the electricity that came out of it.

Good point about how the salaries were for those who left India and not for those who stayed inside the borders. As for me, that's the key of that I needed to hear. This tells me that ISB is graduating phenomal people who are able to compete on the world market.

Ok, the "fake" company I had can now resume it's work. The sky is not falling. :)

8:52 AM  
Anonymous Anonymous said...

Wow, Dave I guess you really hit a nerve of the first anonymous poster. He/she may have gotten it totally wrong. Anyway, I agree with you when you said, we may want to put all the outsourcing deals on hold. One of the few things noted in the past years, was India, due to the outsouring deals and others, has gained good economic strength. The infrastructure, though still inferior to several developed coutries, is growing at a rapid pace in select cities. The work ethic has always been good. However, due or despite these advances, the cost of labor is not cheap anymore. Other South Asian coutries like Philippines and Thailand may offer cheaper labor. So if you're an American company or from Western Europe looking for cheap labor, your ROI may be better elsewhere.

3:03 PM  
Blogger Dave for MBA said...

Well, putting things on hold.. only means pausing to think. The distinct advantage that India has is the English language. Are there even other Asian countries with cheap labor that speak predominantely English?

Again... it's pretty interesting that the high salaries are from those who leave the country. I'd want to revisit some Business School profs who specialize in Indian Economy to understand the 5 year forecast of the cost of doing business. At least... I'd expect the leadership team to have the information

The good thing about the GMAT is that it reminds of us of how easy it is to not communicate or understand the intent of an article. This entry is a pretty good example of how one article can be easily misunderstood or interpretated in a way that the author did not intend.

3:28 PM  
Anonymous Anonymous said...

you sir, are incorrect. Enron in fact did NOT lose their pants off that deal. They were smart, they had made a deal with the Indian government in which if they did NOT produce electricity, the gov't would have to pay for it. So they were being paid to NOT generate electricity (as you said, no one could afford it).

Seeing as how you're going to be doing your MBA and is in undergrad program, surely you know the value of academic sources. Read up on thie aforementioned issue if you really don't believe me. Plenty of reputable authors have written on the issue and many others like it: Thomas L. Friedman (The Lexus and the Olive Tree, ch.1), Susan George (Another World is possible if..., ch.1), and Robert Gilpin (The Global Transformations Reader, ch.29) in particular might be interesting

12:00 PM  
Anonymous Anonymous said...

New from Fortune / CNN :

100 top MBA employers

8:33 PM  
Blogger Abhinav said...

ISB as well as the IIMs here are doing great. However, the salaries mentioned are in fact for international postings.

This is NOT to say that the INDIAN salaries, which amount to 40000-50000 US$, are less. I believe that in terms of PPP, they are quite respectable and good offers with a lot of growth potential.

It is sad that the value of an MBA is being measured most by the salary aspect. There are a lot of other things which these institutions are doing great in the first place, but which go unnoticed in all this salary hype. There are many cases, noth in ISb and the IIMs, where people have actually spurned international offers to live their dream. They are as much to talk about as the grads who got the top-notch offers.

1:40 AM  
Blogger Dave for MBA said...

This topic is bringing all kinds of weird reactions and defensive postures from Indians. Calm down everyone.

This issue was brought to my attention by Indians. There are more than 150 Indians through e-mails who notified me of this issue. It's the Indians who have made this issue the biggest topic rather than non-Indians. The few Indians that are offended or feel judged by this topic are definitely in the minority. I'm thankful for all comments.. regardless of your opinion. However, I should probably clarify some of my points and core intention of my post.

I still haven't seen critical FACTUAL info on the reasons for this. In other words, I would need to know what industries or positions these high paid grads had before getting their high paying jobs and I'd want to know what jobs they got after ISB graduation.

I don't really see that anything else is all that important without knowing this core info. Everything else is speculation and assumption. The speculation may be based on informed experiences. Nevertheless, it's still an opinion.

When I said that I'd want to talk to Dean Rao, I was referring to the questions that I would want answered about these few individuals who were paid as much as they were and if he thought this was abnormal or a growing trend.

11:23 AM  
Anonymous Anonymous said...

Dave, your website is intersting, but I don't like your comments on ISB. I have always respected you, but now you have proven that you are the same old typical white American that views US is the best and rest is crap.

9:24 PM  
Blogger Dave for MBA said...

I absolutely love this this last comment. It's anonymous, so that's suspicious of the security of the individual posting and it's evidence of the overblown reactions that I see from people who don't really understand what was written. I'll keep this comment up. I have no problem with it. I've analyzed my personal feelings on this issue and have no insecurities that would cause me to hide an attack like this. The person couldn't disagree, they had to lash out at what they think I am. Dude.. I'm amazed out your comment. The whole point is that I was impressed with what happened! I Just want to see how big a deal it really is from a practical perspective. Frankly, ISB is not better than the top 10 US Schools. But it depends on your future goals. If you want to stay in your current career path in India, then ISB may be the best school for the situation and Wharton could be the worst school to go to for you. If you want an education with a diverse group of individuals, then ISB is one of the worst schools to consider. It depends on your situation. You see?

4:33 PM  

Post a Comment

<< Home

Journey to my MBA Locations of visitors to this page
Stay up to date with this Blog
Monitor changes to links on the sidebars of this Web Site
Dave's E-Mail

Subscribe with Bloglines Subscribe with My Yahoo! Subscribe with Google Subscribe in NewsGator Online Subscribe in Rojo Subscribe with Pluck RSS reader Subscribe with Bloglines Add to AOL
Get Updates of this Blog via Email:

Powered by
Some Noteworthy Blog Postings
Cornell-Johnson Visit Experience-Dave
MIT-Sloan Visit Experience-Dave
Wharton Visit Experience-Dave
Darden Visit Experience-'04-Dave
Darden Visit/Interview Experience-'06-Dave
Darden Pictures-'06
HBS Visit Experience-'04-Dave
HAAS Visit/Info Session-'04-Dave
Columbia Visit/Info Session-'04-Axechick
Tuck Visit/Info Session-'05-Laser
Tuck Visit/Interview '06-Dave
Tuck Pictures1-'06
Tuck Pictures2-'06
Michigan Info Sess. Experience-Dave
Columba Info Sess. Experience-Dave
Tuck Info Sess. Experience-Dave
World MBA Tour Experience-Dave
Travel Guides-Dave
Columbia Open House I-Droodoggie
Columbia Open House II-Droodoggie
Application Essay Advice-Dave
Application Essay Advice II-Dave
MBA App advice-Consulting/Management-Dave
Good Essay question Prep-Uniqpath
The MBA Journey Begins-Dave
The MBA App Process-MarketWiz
Picking Target Schools-Sghama
Pre-App Tips-Bloghorn8
How to interact w/ B-School Staff-Dave
Managing Your Recommenders-ClearAdmit
Schools I Picked & Why-Anand
Import App Elements-Redwolf056
A Successful Essay(Chicago GSB)-PowerYogi
Why Chicago GSB-Paul Jan
Stanford GSB Dean on Essays
------------------ Application Process ------------------
Advice on Admissions Consultants-Dave
Why get an MBA now?-Dave
Why do I need an MBA?-Dave
Story of Tenacity-Dave
MBA App Advice-Dave
Maximize your MBA Info Sess. Exp.-Dave
Low GPA Stories-Dave
Introspect on being resolute-Dave
Why Attitude Matters-Dave
Wharton's Interview Policy-RedWolf
Dealing with a Low GPA
Tuck's App Review Process
UCLA's App Review Process
Wharton's App Review Process
Every Essay Tells a Story
Your Story is so Interesting
What is a great essay?
Am I too young to apply?
When is the best time to apply?
Applying and not sure where to start?
Is school XXX any good?
The B-School Admit Hate List
Hey Applicant, Lay off the Buggin
Should I interview on or off campus?(See comment)
MBA Tour/Info Session Tip
The Interview
------------------ GMAT ----------------------------------
Low GMAT Success Stories
GMAT Score Needed in Europe
GMAT Score Needed
GMAT Score Needed by Age
GMAT Score Needed by Country
GMAT Score Needed by Race
GMAT Score Needed by Major
Budgeting time for the GMAT
Breaking the 700 Barrier
The B-School Route to Career Change
Pre-MBA Resources
MBA Math Build math and spreadsheet skills
MBA Resources show all
--------- Video Interview's of B-School Deans -------
Video Interviews of B-School Deans
------------ B-School Visit Experiences ----------------
Admin Director Interviews
Visit Reviews
------------ MBA Forums ----------------------------------
Business Week Forum
Wharton Student Forum
Chicago GSB Forum
Yale Forum

----------- B-School Articles and News-----------------
How B-Schools get their name
BusinessWeek(B-School Headlines)
The Economist(News from Schools)
The Financial Times(Business Education)
Wall Street Journal(MBA Center)
----------- Gen MBA Info ---------------------------------
MBABuzz MBA Blogs, Forum, App Stat Plotter
MBA Info
MBA Studylink
MBA Jungle
MBA Game Plan
MBA Official Guide
MBA Depot
Top 10 MBA
Ivy League
MBA Podcaster
MBA Jargon
MBA School Directory
MBA 4 Success
Military MBA

------------ MBA Program Summary for Applicants---
ClearAdmit School Guides
WSJ School Snapshots
WSJ Who's Recruiting Where?
MBAPrepAdvantage School Profiles
------------ MBA Foreign Related -----------------------
Canadian MBA
Infozee "Foreign MBA"
------------ MBA Conf/Foundations --------------------
The MBA Tour
The MBA Diversity Alliance
Forte Foundation
Catalyst Women
Knowledge@Wharton Podcast
Association of MBAs
------------ Resume Help ---------------------------------
Darden Resume's
MBA Game Plan Resume Help

------------ Essay Help ------------------------------------
American Dream - (Dave's Pick) (Samples) (Getting Started)
MBA Essay Strategy(download)
MBA Game Plan Essay Help
Some Classic Advice from Wharton Boards
Clear Edit Automated writing editor
MBA Studio

------------- Interview Insight --------------------------
B-School Interview Braindump-Accepted
B-School Interview Braindump-Clearadmit
------------- Ethnocentric Assoc. ----------------------
LEAD Program for minorities
------------- Post-MBA ------------------------------------
MBA Concepts
------------- MBA Articles---------------------------------
If you want your application to B-School to stand out;first do your homework properly, and then apply early
Admissions Tip:HBS Essay #2
Writing good essays from an ADCOM perspective
Top 5 MBA programs Article
The Full-Time Advantage
Overcoming Procrastination
Why B-School is good for our Economy

MBA Ranks show all
Ranks by Industry Sector Show
Forbes ranking measures the graduates' return on investment
Economist ranking reports how students and alumni rated their MBA experience
BusinessWeek surveys students and corporate recruiters and measures intellectual capital
Wall Street Journal is a corporate recruiter based poll (21 criteria)
U.S. News & World Report evals student selectivity and placement data and gathers the perceptions of deans and program directors to develop the ranking
Financial Times poll measures career progression of alumni, program diversity and a school's track record in producing new ideas in management
BusinessWeek '06 Rank
BusinessWeek '06 Slideshow
Financial Times '08 (PDF) (Interactive)
US News&World Report 2009
Economist 2008 Rankings
------Wall Street Journal Rankings--------------------
WSJ 2006(US)
WSJ 2006(International)
WSJ 2006(Academic Discipline)
WSJ 2006(Women)
WSJ 2006(Ethics)
WSJ 2006(Minorities)
WSJ 2006(Industry)
Forbes Rankings 05' Results - 07' Results Rankings
Beyond Grey Pinstripes 2009
DTU Research per School
B-School Research Rankings
Financial Times E-MBA Rankings '06 PDF
BusinessWeek E-MBA Rankings '05
Money's top 100 MBA Employers '06
US News Category Ranks '06
Financial Times Category Ranks
Asia B-School Rank 2000
Australian 2005 Financial Review
German B-School Rank
Computerworld top techno MBA Survey
Consus Group B-School Rankings top 100 Entrepreneurial Colleges
Find MBA Rankings
International Education Commission's Top 10
Marr/Kirkwood Comparison Rankings
Official MBA Guide:MBA Program Ranking and Screening

GMAT Resources show all
GMAC-Register for GMAT
---------- GMAT Articles ----------------------------------
GMAT 700+ Stories(download)
Why Prepare?
About the GMAT
How someone got a 760 score
How someone got a 790 score
Mark Rice GMAT Advice
Low GMAT Success Stories

---------- GMAT Forums ----------------------------------
Beat the GMAT
GMAT Club Forum and Files!
TestMagic Forum

---------- GMAT Companies ------------------------------
Bell Curves
GMAX Online(Online GMAT Course)
Manhattan GMAT
Perfect GMAT
Princeton Review
Test Prep New York
Test Prep Review(Online Course)
Veritas GMAT Prep
790GMAT GMAT Guru(SF based)

---------- GMAT Self Study Guides ----------------------
Corrections to Official Guide 11th
Advanced GMAT Math Study Guide
GMAT Study Strategy
Micro Edu GMAT Prep Material
Probability Review(download)
4GMAT - Math Books (India)

---------- GMAT Resource/Reference -----------------
GMAT Scratchpad
Dr Math
Dr Math-Pascal Triangle
GMAT Official Guide Question Info
Manhattan GMAT Study Guides (Dave's Pick) (Math Skills Review)
Merriam-Webster Online Dictionary
Texas A&M-College Algebra
The Math Page (For Basic Math Skills)
101 Basic Radical & Exponent Review

---------- GMAT Tests ------------------------------------
PowerPrep GMAT CAT (Dave's Pick)
Ascent Education
800 Score (Dave's Pick)
English Test
GMAT Practice Tests
Gorilla Test Prep
Manhattan GMAT Tests (Dave's Pick)
R&B Consulting Prep Software
ScoreTop Online Verbal-Quant Tests
TestPrep New York
Upstart Raising GMAT Simulator

Financing your MBA show all
Financial Aid Podcast
Fundsnet-Search Engine
Graduate Fellowship Database info
Sallie Mae-MBA Loans
US Government's E-Scholar
MBA Admission Consultants show all Forum
Brody Admissions
Cambridge Essay Service
Clear Admit
Essay Solutions
Global Now
Maxx Associates
MBA Apply
The MBA Exchange
MBAGameplan Article
MBA Studio
Stacy Blackman
Veritas Consulting
-------- Brazilian Admin Consultants ------------------
MBA Empresarial
-------- Commentary on Admin Consultants ----------
Why use them?
Comments about some of them
Not all Consultants are good
MBA Life show all
Chicago GSB Online Newspaper
Chicago GSB Magazine
Columbia B-School Wkly Online NewsPaper
Columbia Spectator Daily NewsPaper
Cornell Univ. Daily Sun (Main Campus)
Cornell Daily News Service Highlights
Dartmouth Online Newspaper
Tuck Today Online Happenings
Duke News & Community
HAAS Weekly
Harvard B-School Online Newspaper
Harvard Gazette Online Newspaper
Harvard Online Magazine
Kellogg Online Newspaper
News at MIT
Michigan(Ross) Newspaper
Texas McCombs Weekly
Michigan Daily Online Newspaper
Stern Online Newspaper
Stanford Online Newspaper
Stanford B-School Reporter
UCLA Qrtrly Assets Mag
Univ. Virginia Daily Online News
Wharton Online Newspaper
Yale Daily Online Newspaper
Yale Herald Online Newspaper
Blog & Other Resources show all
IQ Test
Computer Interval Clock
T-Mobile Coverage Check
Picasa Send large files Send large files
Understanding Blog Template Code
SSI Developer - CSS Monitor
Fodey.comNewspaperclip generator
MBA Related Books
Search Now:

Site Meter