Professor Tom Robertson, dean of The Wharton School reports “Even before the onset of the great recession (2008/9), the rise of Asia and the phenomenal growth of the middle class in what are still generally considered developing countries were well under way. It is abundantly clear that the emerging worldwide economy is now vibrant with possibility for Asian businesses.”
The growing importance of emerging markets is well reflected in the QS TopMBA.com Salary & Recruitment Trend Report 2010/11, based on a survey of 2,150 companies actively hiring MBAs around the world, from 5,007 responding employers – the largest ever global employer survey conducted.
Jump in MBA recruitment
Overall the QS TopMBA.com report projects a big jump in MBA demand in 2010 continuing into 2011 across the major MBA hiring sectors. By 2011, MBA consulting demand will be back at record levels and 55% above 2009 levels. Financial services won’t be far behind with a 54% increase. The technology sector will see a jump of 47%, whilst general industry will increase by 38% (the survey was conducted between April and July 2010).
In fact MBA demand in Western markets is forecast to increase only slightly year on year and these big jumps in demand are concentrated in emerging markets. The QS TopMBA.com report highlights that across Asia employers are embracing MBAs as never before.
The really hot MBA market in 2010 is India which is experiencing an explosion in employer demand for MBAs – especially in consulting/professional services, manufacturing and IT/computer services. Employers are actively looking to recruit from local business schools like the IIMs, Indian School of Business as well as many others, though international employers still have a strong preference to recruit MBA graduates from international business schools.
Demand for MBAs in emerging markets
In fact demand for MBAs in emerging markets has never been stronger and not just in Asia. Companies in many emerging economies are embracing MBAs as a route to global competitiveness – throughout Central Europe, Latin America and this trend is also beginning to emerge in the Middle East.
Sandra Schwarzer, director of Career Services at INSEAD reports an increase of up to 30% in job opportunities in parts of the Middle East. Shwarzer reports the biggest increases in job opportunities in Africa with a 78% year on year increase, and South America – especially Brazil – with a 69% rise. Jose Antonio Cruzado, regional director for QS TopMBA.com in Latin America says “Brazil is experiencing dynamic economic growth and growing demand for MBAs. Brazil is also the engine of Latin America at present, with connected economies, especially Peru, booming from the regional growth in demand. Another factor in the region is China’s quest for raw materials, resulting in a growing demand for Chinese speaking MBAs across Latin America."
The surge in employer demand in emerging markets has inevitably brought about a change in behaviour of international MBA students.
International MBAs
A few years ago, an international MBA was a route to a new life in the USA, Canada or Western Europe. In 2010, an international MBA is as much about learning international business practices and creating a network which can be a powerful career advantage for MBAs seeking to exploit the rapid growth of China, South East Asia, Latin America and other emerging economies. Mauro Guillen dean of the Lauder Institute at Wharton points out “a higher percentage, perhaps as many as two out of every three international students, are returning to work in their home countries, or in emerging markets, rather than staying in the USA.”
Paul Danos, dean of Tuck at Dartmouth College, explains the enduring appeal of top international MBA programs: “demand for MBA graduates by the great businesses of the world keeps increasing. As businesses grow in complexity and scope, companies need more and more skilled and well-educated leaders.”
But perhaps this oversimplifies the picture. In fact emerging markets are playing catch up with the West and many companies are recognizing that MBAs represent an important pool of management for businesses seeking to grow rapidly. There is a viral effect as well. As more MBA alumni from top business schools have returned home in recent years and they enter the local job markets, they seek to recruit other MBAs, often from their alma mater, once they assume positions which include hiring responsibility.
The next stage of development is likely to be the emergence of some powerhouse business schools within these regions. Asia is perhaps ahead of other emerging markets in this respect. CEIBS, NUS, NTU, HKUST and others all feature well in the QS Global 200 Business School Report, based on employer hiring intentions. These schools have, or are currently touring North America and Europe with the QS World MBA Tour in 2010 as they seek to attract Western candidates to meet the ever increasing demands of local employers. Australian business schools also are benefiting from this trend as many Asian candidates and employers have traditionally targeted these schools.
For more information please sign up for our newsletter, or you can discuss this topic on our MBA forums.
Share with friends
