The Big Question: ISB vs. IIM

I get a lot of e-mails on where should I do my MBA - at IIM or ISB ? So I thought let me publish a recent Q&A between me and a MBA prospect. Please note that these are opinions and just my own.


Q. I have work experience in XYZ domain. After MBA i would like to join consulting. How tough would it be to change my domain ? 


A: To switch one's domain takes a lot - be it IIM or ISB. It is because you come with a 'baggage' i.e. your learning and mindset would be a bit tuned to your industry and unlearning is never a easy task. However to change to consulting is 'relatively' the easiest of all switches.


Q. I am looking for IIMs or ISB because i think brand name is a long term asset. Which one is better ISB or IIM in following aspects?

                a. Career change from IT to fin/consulting
                b. 1yr v/s 2yr MBA
                c. ROI (10 lakhs and 2 year or 20 lakhs and 1 yr)
                d. Placement

A: IIMs vs. ISBs  (Only IIM A/B/C are comparable to ISB. The others are no match)

              a. To switch to Fin, you'll hv better chances in IIMs because they have an internship model which gives you that chance but remember than Fin companies coming to IIM campus look for absolute freshers whereas you would have abt 3 yrs work ex by the time you join which might work against you. However in ISB you'll b competing with CAs plus lot of people from hardcore Fin background. So if you are determined for Fin roles then try for IIMs.

To change to consulting ISB is far better because the who's who of the consulting world come to ISB. The chairman of ISB board Rajat Gupta is head of McKinsey. Also in the number of recruitments per consulting company is higher at ISB than IIMs.

           b. 1 yr vs. 2 yr

Both have their pluses and minuses. Depends on what your objective function is. If you wanna get back to working very soon 1 yr works better. It also works better if you have prior work-ex. The advantage 2 yr gives you is the internship which can help you in switching sectors. 1 yr is also much more stressful than 2 yr MBA programs. Peer learning is better at ISB since people with work ex are better able to relate to what is being taught than at the IIMs. Plus the quality of faculty at ISB is world class since Profs from Kellog, London Business School, Wharton come and teach here.

         c. 1 yr programs have better RoI as you will not be earning only for a year. Total expenses at ISB will come to around 20Lakhs. The average salary for a guy with abt 3 yr work ex is abt 13 Lacs. So net you are spending just 7 lakhs over 2 years. On the other hand, just the tuition expenses at IIM-A/B/C is itself 12.5 lakhs. Add other expenses and do the math. You'll see ISB is better RoI. 

       d. Placements are difficult to compare but median (note: not average) salaries are always better at ISB since we have lateral placements. IIMs have lot of entry-level roles. However competition is more intense at ISB since larger pool of students (560 vs. 400 at each IIMs).

Q: How can a student from IT background get in Investment banking or capital market related jobs as analyst in ISB?

A: As explained before this is much more tougher at ISB. You need to have good academics. Do you Finance coursework well. Prepare well for Finance interviews. Be active in the Finance Club.

Q. What role does International certification like FRM CFA or CAIA play in placement?


A:  They do help when it comes to good finance roles. Also signals your seriousness abt Fin careers. most helpful if you do not hv finance work-ex.



Q: 20 lakhs is big amount. Taking example of a student with low work ex and average job (10lakhs package),  How much time will it take to pay loan from bank?


A: Payback varies from person to person. Term of loans offered by banks is 7 years and ISB manages to get good rates with bankers on education loans.



Q. Many people say ISB ranking is not as good as it appears. They say ranking can be 12 in FT but the value is still less compared to IIMs. What is your opinion?


A: FT rankings are one of the most respected rankings in the world. So ISB's 12th rank is definitely good. How good? that is something nobody can say for sure. Only time will tell but the ranking is well deserved. In terms of value in India we are on par if not better than IIM - A/B/C. Internationally ISB enjoys much better brand value than any of the IIMs. Do remember that IIMs are not as strong a brand globally as one percieves. Among Indians education institutions, IIT is definitely a very strong brand.

Q: What kind of profile AdCom of ISB expect from aspirants ? Do they looks for entrepreneurship or any other roles? Please answer in details.

A: Three aspects to anybody's candidature: Academics, Extra-curriculars and Work-ex. You need to be stellar in atleast two of those to make the cut.