News By/Courtesy: Gunjan Dayal | 30 Jun 2020 18:57pm IST

HIGHLIGHTS

  • Tata Steel and RPG Group said they have no plans in the immediate future to send their executives and senior leadership to the campus for training.
  • Industry experts said the effect will be more felt in the upcoming batches as this year's enrollment was completed before April.
  • Many companies are demanding price discounts as institutes switch to the online platform, top b-schools are not yet willing to provide content for less money, senior institutes officials said.

Executive education programs – one of the major revenue sources for top business schools like Indian Management Institutes and Indian Business School – could soon feel the pinch of the Covid-19 disruptions as businesses plan to slash their training budgets. Also, the high-cost longer-term programs for skilled employees, priced between Rs 10-40 lakh, could come under pressure in the next 12-24 months as the pandemic-hit economy and rising unemployment are forcing professionals and companies to tighten their purse strings, said educational consultants and industry experts. Leading companies like Tata Steel and RPG Group said they have no plans in the immediate future to send their executives and senior leadership to the campus for training. “At least for the next couple of years traveling would be a problem and we would not be sending people out for classroom courses,” said Suresh Tripathi, HR vice president at Tata Steel. The RPG Group plans to terminate its leadership development programs. "If we're paying heavy amounts of money and our managers miss out on-campus experience, we 'd rather wait until we're able to leverage the programs," said S Venkatesh, chairman – group HR at RPG Enterprises. The group has sent its senior executives for training to lead global and Indian schools like Harvard, ISB and IIMs. “If we are paying serious amounts of money and our executives miss out on the campus experience, we would rather wait till the time we can leverage on the programs,” said S Venkatesh, president – group HR at RPG Enterprises. That would be a big blow to some top management institutes as executive education accounts for 20 percent to even 40 percent of their profits, said industry insiders. “There could be a 25-35% hit to the executive education market in the next 12-24 months,” said Amitabh Jhingan, a partner at EY Parthenon and an education expert. Corporate-sponsored or customized development management programs could see a decline of 70-80 percent, experts said. The Covid-19 outbreak has shaken the higher education industry around the world, and the country's top b-schools are now investing heavily in ramping up their online distribution systems and putting in place social distancing steps to prepare for a potential reopening campus sometime in August or September. Although many companies are demanding price discounts as institutes switch to the online platform, top b-schools are not yet willing to provide content for less money, senior institutes officials said. “Our clients are beginning to work with us on new and innovative formats to enable their employees to learn even more effectively,” said G Shainesh, chairperson, executive education programs, at IIM Bangalore. “We do not offer discounts on programs.” Although most top b-schools said they didn't have many cancelations for their long-term work executive programs for 2020-21, industry experts said the effect will be more felt in the upcoming batches as this year's enrollment was completed before April. The executive programs of long duration are mostly funded by the professionals themselves, or partly funded by companies. Some of them cost as high as Rs 35-45 lakhs. ISB, which announced a leap in the applicant pool for its 2021 class 15-month executive program, is waiting to see the effect of the future. “We are ourselves worried about the yield, but what will be the real impact depends on the finances of the professionals and corporates,” said Philip Zarrillo, deputy dean at ISB. “We have seen very few cancellations. Companies still want to get people trained,” he said. “There have been some postponements, but whether they turn into cancellations we will have to wait and see.” Shailesh Gandhi, dean – programs at IIM Ahmedabad, said, “We have not received any problem with participants.” Bharatiya Vidya Bhavan’s S P Jain Institute of Management and Research did see “a little bit of dip” in its postgraduate executive MBA program, its dean Ranjan Banerjee said. “However, it should be fine once businesses come back to normalcy in the next six months to one year,” he said.

THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETERA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS IN THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA, FOR THE TIME BEING.

Section Editor: Pushpit Singh | 30 Jun 2020 20:45pm IST


Tags : #PandemicBecameProblemForExecutivePrograms

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