Of education and jobs and you know ... money !

We had our final practical exams today - which went relatively well.
The external examiner, apart from being a jovial fellow, turned out to be pretty much entertaining also ...

Anyways, I did finish my program (assignment we are supposed to code in 3 hours) well before time and was left musing on some issues, which finally resulted in this post.

A recent news article flashed through my memory - one which in 4 ISB (Indian School of Business) graduates were offered jobs which paid salaries of approximately Rs. 10,400,000 - the highest that any MBA graduate from the country.
Now, ignoring the fact, that the salaries are actually in US Dollars (USD 233,800 to be precise) and these students will probably be abroad (where it is much more expensive to live), the salaries ARE pretty high. More so, when you are starting in a company.

Now comparing this to the salaries that we (Engineering graduates) from the Pune University make - which is more or less in the range of Rs. 200,000 to Rs. 450,000, it would take us approximate 20 years to make the same amount that one of these ISB guys make in 1 year.

Which in more harsh and simpler terms means that one of these 4 guys will make more in 15 days of working compared to what we guys will make in a year of working.

A pretty compelling reason to do an MBA, ain't it?

However, IIM-Ahemdabad, which is considered one of the toughest schools in the world to get into and which is also one of the better IIMs in the country, has a national average package of Rs. 1,000,000 (10 lacs) and their highest Indian offer was Rs. 3,400,000 (34 lacs). I'm not aware of their international packages.

Makes you do some thinking ...

Doing some more research on this subject, brought me to this very interesting artice by the Hindustan Times - titled : The Jobs Paradox

A quote from the article states:

They are qualified engineers and MBAs, but they have no jobs. India had more than 60,000 unemployed graduate engineers at last count, according to government figures. No official figure for unemployed MBAs has been published yet.

And yet, India also has a shortage of skilled technical manpower. The country will face a shortfall of 1,50,000 IT engineers in 2010, says a Nasscom-McKinsey report released four months ago.

The article further goes to say that though India produces a LOT of Engineers and other graduates - many of them are "unemployable".

The only standard body governing technical education in the country is the AICTE - which sadly cannot maintain standards ... Most of the institutes certified by them are not upto the standards at all - and it does not take an expert to notice this.

Another problem (which the article also states) that there is big shortage of good teachers. The main reason being that teachers don't draw a big salary in most of the colleges. Freshly placed students tend to make as much as the teachers - if not more ... one reason, why teaching is not such a lucrative option and why there is such a dearth of good teachers.

Even in my college, though we always tend to get good overall results every year, barring a few teachers, others don't make a case for joining the college.
This is the case with most of the colleges around Pune - even the so called better colleges.

A good teacher is recognised instantly and respected by all the students - so we do get to hear accounts of "good" teachers - but these have been too far and few ...

This finally brings us back to the question of how the results tend to be good irrespective of the teachers?
There are two points to the answer - students who are sincere and/or brilliant from the beginning who carry themselves through and a very redundant and predictable education system - the latter of which I'll leave for discussion on a different article.

Hence, this creates a catch 22 situation.
Colleges, in order to do well, need to pick good students from the starting -- and good students only go to colleges that are doing well.

The case with our college is slightly different - its more of a proximity thing.
Our college is located in the heart of the city - and thus is more or less close to every corner of the city. ( The average time of getting to college is about 15 mins)
This draws more or less the good students from around who probably don't want to spend their lives travelling to colleges - and hence, the college is doing well.

But at the end of the day, all the colleges are failing to produce engineers which companies can use - so much, that the companies, given up all hope of finding good people, have started picking up good students early (before graduation) and training them on weekends - so that, by the time they pass out, they can start working immediately.

Then there is the question of reservation - and with it now poised to reach 50%, I pity the students and more so the companies - because finding good talent will become even more difficult.
One of the recruiters who came to our college mentioned that they prefer "a particular college in the city" over others - because they have no - or very low reservation policies.
Hence, the probability of finding brilliant students is much more there.

Other colleges do have brilliant students, but they are more difficult to locate and generally lost because of such reservation policies.

Something for everone to ponder about ...

By the way, do give the original article a read. Very worth it ...
Links here : The Jobs Paradox - Hindustan Times