Consulting is making a come back...

I received this article (Consulting is Back) from the MBA Tour. "What's the MBA Tour?" you ask. "Is is a MBA program that visits various cities and gives out MBA?" Not quiet. Check out the link and sign up. It is very very beneficial to us prospective MBA candidates. Group of international MBA recruiters go to various international cities and make their sales pitch. What their program is about. Why they are great. Why you should consider an international MBA and apply for them. All normal sales pitch. But the real beneficial aspect is that these MBA representatives are also on the acceptance committee and you can meet them in person and engage in person communication. In the words of the not soo smart philosopher, Paris Hilton, "That's Hot."

Since I'm considering Management and Strategy as my post MBA career, this article is good news to me. Here's the article;

The MBA Tour has surveyed our client schools about the 2006 consulting market and all are reporting increased hiring activity from consulting firms. Schools considered traditional avenues for consulting continue to experience strong consulting recruiting. Wharton is reporting that at least 26 percent of the class of 2006 will choose consulting over a low of 19 percent in 2002. London Business School (LBS) reported a 40 percent increase in 2005 over 2004 with hiring activity on par with 2005 in 2006. At some of the top schools, consultancies no longer have to be "pursued" by placement directors. All a good sign that next year's graduating class at the top schools could find consulting companies arriving earlier on campus if the economies remains strong in North America and Europe.

Also interesting is that consultancies are increasing their recruiting presence elsewhere. While McKinsey has recruited at schools like NYU and Cornell for example, they are elevating schools like Cornell to priority recruiting schools. The Judge Business School at Cambridge reported 35 percent of its MBA class going into consulting with twice the number of consulting firms recruiting on campus since 2004. Georgetown also saw a similar increase in firms recruiting on campus of 50 percent.

This is all good news for applicants looking to finance their MBAs with a career in consulting. While the traditional consulting schools are reporting heavier recruiting activity, consulting firms are looking elsewhere to attract top notch students. So long as the demand for consulting remains, schools will see the same or higher level of activity next Fall. If campus recruiting happens earlier, that is the first indication of another strong season.

.............Salaries are also increasing

Salaries are also on the rise especially for the top schools where recruiting for the best students is very competitive. While they have not reached the pre-2001 year-over-year increases during the Internet bubble, some schools have reported sign on bonuses and guaranteed year-end bonuses that can increase the base salary by as much as 50 percent.

Wharton reports a modest increase over 2005's median salary of $110,000. With sign on bonuses and guaranteed year-end bonuses, starting compensation in consulting can increase to nearly $150,000 at a top-notch firm. In reviewing salaries of graduating MBAs, most schools are reporting the same or slightly higher salaries as last year. However a slight increase may indicate a possible cooling of the market. In fact, first year class sentiment at one top school indicates fear of just that as many of them rushed to secure summer internships, the best strategy for securing a full time position upon graduation.