2023 has brought IIMA and ISB to a similar comparison scale as it was five years ago. With India looking inwards for world-class management professionals, both schools are playing by their strengths to position themselves as the go-to school for consulting, finance, marketing, and technology talents.

Indian Institute of Management, Ahmedabad (IIMA) was founded in 1967 by the Government of India in collaboration with business visionaries. Today, it has cult status among Indian Business School aspirants and has grown into an EQUIS-Accredited, internationally recognized management institution.

Indian School of Business (ISB), founded by a group of eminent industrialists and academicians in association with Kellogg and Wharton, brings an international perspective on management education to the talent pool. The first student intake was in 2001, and in just a couple of decades, the school is now featured in the top 50 Business Schools in the world.

Although Indian business school rankings do not rate the AACSB-accredited ISB, students in India and abroad have a fuzzy perception of how these two MBA behemoths compare with each other.

We have undertaken the challenging task of sizing them against each other.

Do note that in India, MBA degrees can only be given by universities. That is why Business Schools here offer management diplomas equivalent to an MBA, and both IIM and ISB call theirs – PGP or Post Graduate Program.

1) Course duration

The MBA program at ISB follows the European 1-year model, whereas IIMA follows the US-style, 2-year MBA. Therefore, ISB demands a shorter career break, but IIMA requires a longer interruption of 2-years. Though ISB provides a minimum classroom contact of 680 hours, similar to US’ B-schools, IIMA’s course is obviously a more in-depth learning experience.

Duration: IIMA > ISB

2) Class Size

ISB intake is close to double that of the IIMA, with 2023 entering class accepting 843 students in Hyderabad and Mohali campuses – a 22% increase (compared to the class of 2021). On the other hand, IIMA represented 408 students (a 9.6% increase compared to the class of 2021).

Class Size: ISB > IIMA

Campus: ISB: 2 IIMA: 1

3) Incoming Class Profile

For IIMA - the Class of 2023, for instance, had 25% with no experience, 17% with less than 1 year of experience, and 29% with 1-2 years of experience, taking the total of IIMA students with less than 2 years experience to 71%.

The corresponding figures for ISB tell a different tale altogether.

For the class of 2023, the ISB PGP class had 26.5% with 5-8 years of experience, 42.4% with 3-5 years of experience, and 25% with up to 3 years of experience, proving that ISB is suited for experienced professionals who need a shorter, more intensive management education.

As for IIMA, it is longer, more extensive, and is just right for candidates with less experience.

IIMA admitted 58% (36% drop since the class of 2021) Engineers, while ISB took in 49% engineers (an 11% drop compared to the 2021 class) - a clear indication of both school’s strategy on diversifying the class profile in tune with the emerging trend of Engineers pivoting to consulting job functions; a development that has been happening for over a decade at partner schools – Kellogg and Wharton. India is catching up.

The GMAT Scores were another metric that suggests the entry criteria. For IIMA, the entry is much stricter at a median GMAT of 720 against ISB’s 710 median scores.

When you compare the diversity of the background within the Engineering domain, ISB attracts professionals from IT/ITES, Consulting, Banks, Oil/Energy, Manufacturing, and Telecom, while IIMA admits a more traditional group (IT/ITES, Industry, Consulting, Finance, and PSU/Govt).

Women in ISB PGP (Trends):  Women in the latest ISB class reached 37% - a 4% drop compared to the class of 2021.

Related: Top MBA Programs - Women Percentage

Women in IIMA PGP (Trends): The women in the IIMA PGP class are behind at 23% (a 5% drop compared to the class of 2021) after two consecutive years of stagnation.

GMAT Requirement: IIMA > ISB
Women Representation: ISB > IIMA
Engineering Background: IIMA > ISB
Peer to Peer Learning: ISB > IIMA
Tier-1 Engineering Schools: IIMA > ISB
Diversity of Peers: ISB > IIMA

4) Admissions

IIMA is considered the world’s toughest MBA program to get into, with a mind-boggling acceptance rate of just 0.1%. To squeeze your way into the hallowed gateways of this school, you would need to be in the top 1 percentile in the CAT exam or get a minimum GMAT score of 720 (Q 50 and V 40). This is just the preliminary screening to a grueling Application Rating Score that sums up the rating score for your class 10th, 12th, undergraduate, and work experience with the undergraduate rating designed with greater flexibility.

If your class 10th or class 12th score falls below 80%, you are at a considerable disadvantage while applying unless the work compensates with more than 3 years of relevant experience.

Those who have taken the CAT route in 2021-22 have presented an evaluation dilemma. The committee made the Bachelor’s degree optional for taking the CAT exam. The IIMA admissions team responded by negating the Bachelor’s degree component from the Application rating score by scaling it down to 25 with just the class 10th, 12th , and Candidate’s work experience as the three components.

10th Rating score

<=55 = 1
55-60= 2
60-70=3
70-80=5
80-90=8
90-100=10

Science/Commerce/Arts-Humanities (12th Rating Score)
<=55 = 1; <=50 = 1; <=45 = 1
55-60 = 2; 51-55 = 2; 46-50 = 2
61-70 = 3; 55-65 = 3; 51-60 = 3
70-80 = 5; 66-75 = 5; 61-70 = 5
81-90 = 8; 75-90 = 8; 71-85 = 8
>90 = 10; >90 = 10; >85 = 10

After filtering candidates through CAT and GMAT, a personal interview and Analytical Writing Test (AWT) is conducted that is followed by a final selection that takes into account academics and work experience, with a higher privilege given to academics.

The Composite score – a formula with AR score and GMAT is used for the final selection.

New Application Rating Score (AR) = 10th Rating Score + 12th Rating Score +  Work Experience Rating Score

Calculation of the AR and Composite Scores

CS = 0.35* (Pro-rated AR Score/35)   +   0.65* (Normalized overall CAT Score)

Pro-rated AR Score= [(AR score without Bachelor’s degree component)/25] * 35     

ISB, on the other hand, will only take in students with 2+ years of experience. Exceptional candidates with less than 2 years of experience are given deferred admissions. A GMAT score is necessary, but there is no minimum requirement, although the 700+ score among Indian candidates is a norm. The application process also mandates a thorough submission of personal, career, and educational details, a few essays, and an interview.

IIMA prefers younger candidates with strong academics, while ISB goes for professionals with exceptional experience and proven leadership skills.

Entry Criteria (Academic): IIMA > ISB
Entry Criteria (GMAT): IIMA > ISB
Entry Criteria (Experience): ISB > IIMA
Entry Criteria (Leadership): ISB > IIMA

Contact Me - Atul Jose for help with strategy and conversation about PGP Application – end-to-end support (strategy, resume editing, essay editing, recommendation letter editing, and application questions)

5) ISB PGP Placement vs. IIMA PGP Placement

By Industry: In 2022, the hiring rates at both institutions saw improvements. IIMA further strengthened its position in consulting (53%) and finance/banking (18%), while ISB showed significant growth in Information Technology (28%) and maintained its lead in Online Services/E-Commerce (5%). Engineering data was not available for both years, making it inconclusive. In 2021, IIMA had a higher hiring rate in consulting (44% vs. 33%)  and finance/banking (16% vs. 10%) compared to ISB. However, ISB outperformed IIMA in Information Technology (22% vs. 9%) and Online Services/E-Commerce (3% vs. 5%). These trends highlight the distinct industry preferences of the two institutions' MBA graduates.

 

By Function: In 2022, both institutions experienced improvements in hiring rates. IIMA strengthened its position in consulting (55%) and product/category management (15%), while ISB gained an advantage in marketing/sales (18%).

In 2021, IIMA exhibited higher hiring rates in consulting (48% vs. 34%), marketing/sales (10% vs. 14%), and product/category management (7% vs. 14%) compared to ISB. However, ISB had a lead in finance (5% vs. 15%) and general management (12% vs. 5%).   

 

Marketing and Sales were tied with Product/Category Management at  ISB (14%). IIMA also had a robust Marketing/Sales placement (10%) while Product/Category Management dropped to 7%.

For General Management placements, ISB’s experienced class was at an advantage, as evident in the 12% placement to the function. Business development also found greater representation (14%) at ISB compared to IIMA (3%).

Consulting (Industry): IIMA > ISB
Technology (Industry): ISB > IIMA
Finance (Industry): IIMA > ISB

Consulting (Function): IIMA > ISB
General Management (Function): ISB > IIMA
Marketing/Sales (Function): ISB > IIMA
Finance (Function): IIMA > ISB
Product Management (Function): IIMA > ISB

6) Post-MBA Salary

By Industry: The median salary (middle 80%) for the 2022 graduating class at ISB reached INR 31 lacs. IIMA, with a lower experienced class, managed to attract 28.1 lacs in median salary.

In the consulting sector, IIMA MBA graduates had a median base salary of 23,73,800 in 2021, while ISB graduates earned 28,98,271. However, in 2022, the median base salary for IIMA graduates decreased to 27,77,359, while ISB graduates saw a significant rise to 33,29,759. In finance/banking, IIMA graduates earned 22,50,000 in 2021, whereas ISB graduates earned 25,45,504.

In 2022, IIMA graduates' salaries increased to 27,63,793, while ISB graduates' salaries rose even further to 34,90,064. The trend continues across industries, with ISB often surpassing IIMA in median base salaries, making it an attractive choice for MBA aspirants seeking lucrative career opportunities.

 

By Function: In 2022, IIMA graduates narrowed the gap in certain functions like consulting and marketing/sales, with median base salaries reaching 33,48,655 and 29,90,804, respectively. However, ISB graduates maintained their lead in finance and product/category management, with salaries of 29,34,152 and 34,37,971, respectively. In 2021, ISB graduates commanded higher salaries in consulting, finance, marketing/sales, product/category management, and general management compared to their IIMA counterparts.

The data for business development in 2021 and 2022 was not available for ISB, making it inconclusive for this function. Overall, both institutions offer competitive salaries in various functions, attracting top talent across industries.

Top Recruiters - IIMA vs. IBS PGP

ISB PGP Top Recruiters: Although ISB has not released the top recruiter list by numbers, the global consulting giants - AT Kearney, Accenture, Bain and Company, Deloitte, Ernst and Young, L.E.K Consulting, KPMG, McKinsey & Company, PwC  and ZS Associates were among the top Consulting recruiters.

On the Technology/E-commerce front, Amazon, CloudTail, Flipkart, Myntra Designs, Zomato, Electronic Arts, HCL, Microsoft India, ThoughtWorks,  and Times Internet Limited were among the recruiters.

Banking has a mix of Indian FinTech companies – PayU, Lendingkart, One 97/PayTM, and traditional banking recruiters, American Express, Axis Bank, Capital Partners, Citibank, Credit Suisse, YES Bank, DBS Bank, and Estee Advisors.

IIMA PGP Top Recruiters 

Consulting Mania at IIMA: In 2022, 190 firms participated in the placement process, with approximately 220 different opportunities. Boston Consulting Group and Accenture had the most offers  on campus during final placements. At the end of the final placement process, Boston Consulting Group made the most offers (including Pre-Placement Offers) with 44 offers, followed by Bain & Company with 37 offers.

Goldman Sachs was the largest recruiter among Investment Banks, with 6 offers, closely followed by Bank of America with 4 offers. In 2022 placements, the Private Equity, Venture Capital, and Asset Management cohort saw a 42% increase in net offers, while the Management Consulting cohort saw a 30% increase in net offers compared to last year.

TAS made the most proposals (including pre-placement offers) in the consumer products and general management domains, with six, closely followed by HUt, Mondelez, and Emaar, each with three. Tata Consultancy Services was the largest recruiter in the IT Consulting cohort, with four offers. PayTM made the most offers (20) during the Laterals process. Other top recruiters in the Laterals process included PwC (13 offers), American Express (11 offers), and OYO (10 offers).

Post-MBA (PGP) Salary: ISB > IIMA
Post-MBA (International Recruiters) (Consulting): ISB > IIMA
Post-MBA (International Recruiters) (Others) : IIMA ~ ISB (Low)
Post-MBA (FinTech): IIMA ~ ISB

7) Alumni Network

IIMA was founded in 1967 and boasts a vast Alumni Network of nearly 40,000 graduates. ISB is a much later entrant to the scene, and its Business School graduates have only reached 3,800+. Where ISB claws back, a bit of this disadvantage is in a slightly better international networking potential.

Alumni Size: IIMA > ISB

8) Post-MBA location (India vs. International)

Both programs have pivoted completely to Indian recruiters or American recruiters with an Indian presence. As per the 2022 employment report, IIMA has offered international placements only to 1.8% (7 offers) of students in location-based in Asia and the US- Asia Pacific, Dubai, Hong Kong, and Mexico City. On the other hand, ISB had a total of 31 international offers from diverse regions — South-East Asia, the Middle East, Africa, Europe, and the USA.

International Offers: IIMA ~ ISB (non-existent)
International Reach: IIM = ISB (Below Average)

9) Exchange programs

IIMA has more exchange programs than ISB, with 80 leading Business School partners, but ISB has 56 partners. IIMA offers greater options for Europe and Asia with an exchange program in South America, while ISB has none there.

ISB was founded in association with the Kellogg School of Management and the Wharton School. It also has strong ties with the London Business School, the MIT Sloan School of Management, and The Fletcher School of Law & Diplomacy. IIMA had a close relationship with Harvard Business School in its formative years that influenced its dependence on the case

International Networking: IIMA > ISB
International Culture: ISB > IIMA

10) Course Fees

IIMA offers an affordable 2-year program with a tuition fee of INR 18.19. When you account for the cost of the laptop, personal expenses, boarding, and travel, an additional 6.42 lac would be added to the expenses, taking the total cost to 24.6 lacs for one year.  

On the other hand, ISB charges Rs. 24,57,000 as tuition fee with the total cost - including accommodation, library, alumni association, and GST, taking the total expense to 36 lacs.

Cost: ISB > IIMA

Which Program is right for me?

Both programs have their niches and choosing one mostly depends on the stage of your career path.

For application-related assistance, start a free consulting session with me Atul Jose (Founding MBA Admissions Consultant, F1GMAT), or you can add me through LinkedIn.