Harvard B-School has a term for IIM fee cut: ridiculous

‘‘From whatever I have gathered, I think the move to reduce IIM fees will only affect the quality of education being imparted by these top class B-schools,’’ Vietor said on the sidelines of a press conference held to announce HBS’s decision to open its first research centre in India, its sixth overseas.‘B-schools need compensation given to them to maintain the cost of a highly qualified and top class faculty. They need the money to hire and retain such high-level faculty, reducing the fee will only make that difficult, ’’ he said. ‘‘Even Harvard is very expensive but we give out all kinds of scholarships and loans to our students.’’

Vietor said, ‘‘Even if they (the students) come out with a heavy debt burden, they can easily pay it off with the kind of salaries they get thereafter.’’

Vietor, along with Warren McFarlan, director for Asia Pacific initiative, is on a two-day visit to India, scouting for a suitable location to set up the Harvard centre, a think tank staffed by economists and management experts which will specialise in case studies.

Mumbai and Bangalore have emerged as potential locations, said McFarlan without divulging further details.

The research centre, expected to come up before the end of 2005, may cost upto $3 million. It will be in line with HBS’s other five centres at Silicon Valley, Hong Kong, Buenos Aires, Tokyo and Paris.

India’s role at the world’s premier business school is growing, said McFarlan. Of the faculty of 200, about 22 are of Indian origin and have completed their college education here, he said. ‘‘We are currently also searching for a director to head the centre in India.’’

The Harvard Business School dean is slated to visit India again in September 2004, to assess the potential and have a good look at the country.

The Harvard team has already met top corporate barons in India to look for funding for the research centre, said sources. They are slated to meet Anand Mahindra today. ‘‘We are trying to raise money for the centre from our alumni here,’’ said Vietor. The research centre is expected to cost around $3m.