Consulting firms educating the educational institutions

Schools hire consulting firms for growth push - The Economic Times: "Specifically, schools and colleges are looking for advice on compensation structures to attract better faculty and weave in better incentive plans. Like Corporate India, institutes are asking consulting firms like KPMG, Deloitte, Ernst &Young (E&Y) to draw up performance management plans, curricula that will attract industries and help with understanding ways to generate revenue. For the consulting firms, this spells a fresh opportunity."

"The education sector needs external advisers because for a long time they have not hired quality professionals in non-academic areas," says Narayanan Ramaswamy, partner and national head of education, KPMG. Apart from 300 schools, colleges and vocational training institutes, their clients include IIT Kharagpur, Manipal Group, ISB and Pearson Schools. KPMG also advises international schools that are looking for partners in India. "Schools and colleges have never been evaluated in India, unlike companies, and this is a challenge consulting and advisory firms face."

According to India Ratings, a Fitch Group Company, the education sector grew at a compounded annual growth rate of 15.5% from FY05 to FY12. In the past five years, there has been a 20% growth in private colleges, as per consulting major Ernst and Young's records.

Till recently, benchmarking best practices would mean adopting what counterparts in the West do. "This growth will sustain and so colleges have to hone their USP. Therefore the need for consulting companies," says Amitabh Jhingan, partner, Transaction Advisory Services and national sector leader - Education, Ernst & Young India.

Most consulting forms are tasked with helping schools and colleges structure their goals, work on application-based research to attract recruiters and get more funding. "In the past three years, there has been a flurry of private universities but no focus on grooming talent. One has to distinguish performance and reward correctly and explain to teaching aspirants what one can expect in the job," says Sandeep Chaudhary, partner for talent and reward of Aon Hewitt. The group has worked with global universities and will use the experience to "structure the gap that exists in India," says Chaudhary...