Before continuing, please read this article:
ISB sees an over 39 per cent increase in recruiters during campus placements
22 lakhs average salary, is ISB still worth the hype?
The Economic times came out today saying that the average salary offered at ISB this year is Rs 22 lakh. What does this mean in the Indian scenario? How does ISB fare when compared with IIM A,B,C? How great is the ROI at ISB?
If you have these question, we have the answers.
What does this mean for you?
At a 22lakhs average, a good estimate would be that 60% of the class is either at this number or below it. So does that mean that you will end up with a 20lakh job for sure if you manage to go to ISB? No is the answer. Though ISB does put a lower limit on what firms can pay, it goes as low as 18 lakhs. Not too bad in the Indian scenario. ISB’s lower limit is higher than IIMA and that too by a good margin.
How good is the return on investment?
The cost of the PGP at ISB fluctuates around the 30L mark. Now if 60% of the class gets 22L or less and you’re probably in that bracket, the difference in the money you make and the money you pay is a whopping 10L. Hold on before you start criticizing ISB, it is the same for the top 3 B-Schools in India, unless you end up with a 15L job there, well then its worse.
But ROI can’t just be measured by monetary aspects. Brand value is a salient feature in the MBA game.
ISB alumni report a 160% increase in salaries three years after graduation. Hardly any B schools in the country can boast of that.
How to measure the value of your placement?
This one is simple and quite different from what most people would like to believe. There are two chunks that make a job whole. One being the money they offer you, for instance 22L at ISB.
The other chunk that everyone seems to ignore is the year on year growth. Let us give you an example. You land a 20L job at ISB, your friend also lands a 20L job but at another firm.
You grow at 20% every year, he grows at 5%.
A difference of 5L in three years. This is the power of year on year growth.
Should you go for an MBA if you are already earning a high(debatable definition) salary?
Always, go for an MBA(provided you want to do it), it makes more financial sense in the long run. You can always find out the NPV for doing an MBA. What should really matter is that the MBA from a good B-School gives you a higher salary and higher growth rate. The fees you pay to ISB is essentially for the above two factors. This is what makes ISB a lucrative option in the long run.
All in all, ISB is still definitely worth the Hype! A global school at an Indian price tag. The number of applicants for ISB are only growing each year. You need to up your game to get ahead. The Bootcamp is a group of ISB alumni that are here to help you achieve your dreams. Please reach out to us for help with applications, GMAT or interviews.