Why are some Private B Schools in India stuck in the Time Warp? 

Stuck in the Past, Missing the Moment : For over a decade, a troubling number of B-schools have remained frozen in a model which offers little relevance, little innovation, and even less impact. These B-schools have struggled to demonstrate any meaningful progress or substantial improvement in academic quality or placement outcomes. Beyond some infrastructure upgrades, there has been little to no tangible growth for these institutes over the past decade. The issue is not rooted in a single flaw but emerges from gaps which are systemic, historical, and institutional. 

This isn’t just stagnation, it’s institutional inertia. The uneven recognition and performance of these business schools across India, despite their historical legacy and proximity to economic hubs, is a major concern. A decade of crisis. 

While the B Schools in this category are located in every part of the country – the case in hand is the city of Hyderabad, which illustrates this challenge vividly. 

The City of Hyderabad reveals a paradoxical reality. 

Most of the Business Schools in Hyderabad, despite the city’s prominence and academic heritage, have struggled to attain a stature which really appeals to the aspiring MBA students who appear for CAT or XAT – the two most popular entrance exams for MBA/PGDM in India. 

Applications received by some of these B Schools from the CAT / XAT takers often did not even cross single digit.

Key findings reveal significant gaps in faculty quality, placement outcomes, intake process followed by their admissions team, national rankings, profiles of roles offered by recruiters. Clearly there is a disconnect between academic output and market outcomes, and a pedagogical model that, while conceptually may sound good, is often constrained by scale and execution. 

Exception – Indian School of Business (ISB) Hyderabad.

While ISB Hyderabad is a globally acclaimed and world-class standing in quality, it is not a reflection of the broader ecosystem but rather an exception that highlights its peers’ challenges. In fact, ISB Hyderabad, has secured the #5 position globally and #1 in India in the newly released LinkedIn Top MBA Programs 2025. Ranking which surged ahead of the premium tagged IIMs. 

ISB’s unique model, which operates outside the traditional regulatory framework, demonstrates that while excellence is achievable in Hyderabad, it may require a fundamentally different approach . 

Prof. Dr. M R S Suryanarayana Reddy, Director Admissions, Vishwa Vishwani School of Business, Hyderabad, examines this and makes an attempt to understand why these B Schools continue to operate in a bubble – detached from industry, innovation, and the future of management studies. 

The crying need is to ensure that these sets of B School’s legacy, location and ambition translate into national relevance and academic excellence.

1. The Perception Gap: Hyderabad’s top B-schools consistently lag behind. Sadly Most of Hyderabad’s B-schools do not find a place in the National Top 100 which NIRF releases. When the national ranking data is synthesized, a clear hierarchy emerges that supports the notion of Hyderabad’s B-schools struggling for prominence. These rankings place the institutions far outside the best performing nationally, solidifying the perception that they are not in the same league as the country’s elite. 

Only 4 Business Schools from Hyderabad ranked out of  125 B Schools in NIRF Ranking 2025.

Adding to this concern is a noticeable trend of declining ranks for some of the city’s most established institutions. The NIRF ranking for IBS Hyderabad, has shown a significant drop over the past few years, falling from 25th in 2020 to 46th in 2025.

While IMT Hyderabad’s NIRF ranks have remained inconsistent year after year (it slipped from 84th in 2023 to 97th in 2024 and 72nd in 2025) others (VJIM, SSIM, VVSM, IPE etc. ) do not rank in the ‘Top 100 List’ or did not attempt to participate in the rankings. 

This points to a fundamental challenge in building and maintaining a national brand, as rankings implies a drop in key performance areas such as research output, professional practice and most importantly attracting talents at all stakeholder levels.

Table 1 : NIRF Rankings of Hyderabad Based B Schools

* ISB Hyderabad not participated in NIRF Ranking **Government Colleges

2. Return on Investment : Placement, Fees, and Value Proposition

The most tangible measure of a business school’s value according to most of the students is its market performance, specifically the return on investment (ROI) it offers. A detailed analysis of the same for Hyderabad’s B-schools exposes a massive chasm between them and their premier national counterparts, a reality that heavily influences their struggle for national prominence.

The Salary Spectrum: A Detailed Comparison of Placements : The placement statistics for most of Hyderabad’s B-schools tell a very different story. While they do attract a mix of reputable national and multinational companies, the average compensation packages are significantly lower. 

The Fee-to-Salary Ratio: A Critical Analysis of the Return on Investment.

Table 2. Hyderabad B Schools – Fees Vs Offered Average CTC and ROI 

* LPA – Lakh Per Annum in INR.

The only exception to this trend is the Indian School of Business (ISB), which reports an average salary of around ₹34 LPA, placing it squarely on par with the premier IIMs.

This discrepancy is not merely a salary gap but a fundamental difference in career opportunities and the kind of companies and roles a student can access.

This stark difference in market outcomes presents a compelling, data-driven reason for the lack of national prominence. For a prospective student who has taken a CAT or XAT or any other entrance exam with a high score, the value proposition of a top-tier national B-school is overwhelmingly superior. 

3. Data Credibility and Contradictions: A Case Study in Placement Reporting

A crucial aspect of market perception is the credibility of the data used to measure it. In the case of Hyderabad’s B-schools, a lack of standardized and audited reporting can create a narrative of unreliability. An analysis of the available placement data reveals significant inconsistencies, which can damage an institution’s reputation and make it difficult for prospective students to make informed decisions.

This kind of contradictory reporting is often a sign of non-standardized data collection, where different publications or the institutions themselves may use varying methodologies for calculating averages and highest packages. The country’s premier institutions, in contrast, have their placement reports audited and standardized, which builds a strong foundation of trust and reinforces their brand. The inability or unwillingness of local institutions to adopt a similar level of transparency creates a subtle yet persistent erosion of their credibility in the eyes of a discerning national audience.

Barely any students apply to these B Schools through CAT or XAT scores, considered the most popular and distinctive entrance exams for MBA / PGDM. 

4. Academic Foundations and Industry Disconnect

Beyond the quantifiable metrics of rankings and placements, the struggle for national prominence is also rooted in the qualitative aspects of a B-school’s academic foundation. This includes its pedagogical approach, the quality of its faculty and research output, and, most importantly, its ability to produce graduates with the skills and competencies demanded by the modern corporate world. An examination of these areas reveals a complex picture of strengths and weaknesses that collectively contribute to the perception of Hyderabad’s B-schools remaining in the shadows.

5. Faculty and Research Output: A Qualitative and Quantitative Assessment

Faculty quality and research output are vital for a B-schools of national and international reputation. The available information indicates that Hyderabad’s institutions possess pockets of excellence in this regard. IBS-ICFAI, for example, has been ranked 5th among top business schools for research in India by IIRF. Its faculty have published research papers in top-tier journals. Similarly, the faculty at IMT Hyderabad have published research papers and management cases with reputable publishers like Harvard and Ivey. 

Despite these individual successes, the overall research and innovation ecosystem in Telangana’s higher education landscape faces systemic weaknesses. A broader analysis of the state’s universities points to a general deficit in research output and innovation compared to central institutions, largely due to inadequate funding and facilities. This suggests that while a few institutions may have a strong research culture, it is not pervasive enough to elevate the entire ecosystem. The challenge is not a lack of quality research in certain pockets but a failure to leverage that research to build a collective national brand and a powerful reputation. 

Premier institutions not only conduct research but also have the brand power and network to ensure that their research and academic contributions are recognized and, as a result, bolster their national “perception” ranking.

6  The ‘Silicon Valley’ Paradox: Why Tech Hub Status Hasn’t Elevated B-schools

Hyderabad is a major IT and tech hub, attracting top recruiters such as Amazon, Deloitte, Microsoft, and Accenture. One might assume that this economic vitality would naturally elevate the city’s B-schools to national prominence. However, the available data presents a paradox: while the city’s robust tech sector provides ample employment opportunities for local graduates, it has not, with the exception of ISB, proportionally elevated the brand of its B-schools on a national scale.

This paradox exists because the presence of a major corporate sector does not automatically translate into the creation of premier academic institutions. The prestige is instead captured by globally-accredited entities like ISB, which are perceived to be on par with international standards, and by premier national institutions like the IIMs, which are considered the talent factories for the entire country regardless of location. 

Similarly, other cities too, present a tale of two distinct realities. It can be seen that there may be a globally-recognized, elite institution on one hand, and a fragmented ecosystem of another set of B-schools that are largely overshadowed by national competitors. This case highlights the urgent need for strategic interventions, not only in Hyderabad but also in all locations where these types of B Schools are struggling to make it to the next orbit. 

About Dr. M.R.S. Suryanarayana Reddy : Dr. Surya has over 17 years of leadership in higher education, specializing in admissions management, institutional branding, and academic governance. Currently Director–Admissions & Brand Building at Vishwa Vishwani Institutions, he has previously held senior roles at KG Reddy College of Engineering, IARE, Mohan Babu University, and BVRIT, consistently driving enrollment growth, digital transformation, and institutional rankings. A Ph.D. in Human Resource Development Climate from JNTUA and a ratified Assistant Professor, he has published extensively in Scopus-indexed journals, earned multiple best paper awards, and contributed to curriculum design and entrepreneurship development. Recognized with honors including Telangana Best B-School Director (Admissions) and Emerging Leader in Higher Education, Dr. Reddy is widely acknowledged for blending academic rigor with strategic leadership to advance institutional excellence.