Search This Blog

Wednesday, May 27, 2020

Foreign Universities may enter India virtually

Why do a lot of people go abroad for higher education. There are many reasons, and I say them in no specific order.

1. If you have any skills other than doing well in exams, you may not manage admission in any good university in India (and there are only a handful of them). And in such a situation, if you can afford to study abroad, you would go out.

2. Even if you are skilled in taking exams, you may be unlucky on that one day, and you may not get admission in any of the Tier 1 institutions. So you consider studying abroad (typically next year).

3. You want to emigrate to a country where you think you will lead a more comfortable life. Indeed, this is a common reason as the number of students to a country varies drastically as they change their immigration policies.

4. You want to study a subject not so popular in India, or a combination that is not available in India.

What is clear is that students or families have to be either very rich or they have to take loans and to repay those loans you need to be able to work in that country after your graduation. Some universities do have need-blind admissions, and they do provide some scholarships to enable students from places like India to study, but such scholarships are very few, particularly at the under-graduate level.

The online degrees are slowly changing that. Now, there is an option for Indian students to study "abroad" at a lower cost and even if one takes loans for those costs, the loan can be repaid with Indian salaries. However, before Covid, an online degree, particularly at the UG level, was not in demand. There were student doing Masters online, but a UG degree sitting at home is considered low-quality, both from the perspective of poor learning of academic content (no peer learning, no direct contact with professor, etc), as well as from the perspective of lack of campus life (sports, other extra-curricular, learning about different cultures).

But Covid is changing those perceptions and business models. With all the US universities forced to teach online for half a semester, the online education no longer appears to be poor quality. If MITs and Stanfords of the world can teach online, even as an emergency measure, there must be something good about it. (Actually, they have been teaching online for a long time. They have been live telecasting their classes, and/or recording their lectures and making them available for later viewing.)

But what about the campus life. And this too is about to happen. Campus life within your country while you study online from a far away university.

The universities abroad are facing a problem. They offered admission to international students, but can't let them join in the coming semester. Either the university is not opening up and plans to have an online semester, or even if they open, there are going to be travel and other restrictions because of which the student cannot join. They can offer a deferred admission to the student, but they fear that the student may look for other options.

So one of the ideas on the table is this: Contact a good university in the country from where you have admitted many students. Have a deal with them that they will host your students for a semester only for the campus experience. So they stay in the hostel, eat in the mess, use all the sports facilities, sit in the library, use WiFi network, and interact with so many other students around them. The education will be completely online directly from the foreign university. (May be they can have a deal to use some labs too, or the deal may include proctoring exams.) Not exactly the experience these students were looking for, but better than learning from home or doing nothing for a semester or two.

And if this idea works, that is, if the students like this model, this can quickly gain a lot of traction. And that would enable a large scale virtual-entry of foreign universities in India. That is, they can have a large number of Indian students, do all the academic activities online, and hence have no physical presence in India. So no regulatory hurdles. No need for any permissions. And some enterprising campuses offer "campus support" within India. These could be campuses of existing institutions who could build more hostels. Or these could be campuses of institutions that are closing down. They would be happy to have such a business opportunity.

The foreign universities, particularly those, who are beginning to offer online degree programs, would welcome such a combination as it allows them to increase the admissions substantially while retaining their focus on education and not having to worry about campus services.

What is happening is unbundling of university services as I mentioned in my previous blog and that is making these new options available to students. Students may not want to be on the same campus for all 8 semesters. They may want to spend a semester or two in the university campus abroad. They may want to work for some semester(s) while studying online. All those combinations can be served easily in the unbundled world.

Is this a good thing for the country, or should we be concerned.

My take is that we should be concerned. If such a degree takes root in the popular imagination, and industry accepts these graduates (which is likely, industry will only worry about your skills and knowledge), the numbers could be large. If 50,000 additional students (over and above those who are going abroad today) take up these programs, it would impact quality of admissions in our Tier 2 institutions. Our Tier 1 institutions will not see any impact in foreseeable future as face to face classes in top colleges (that too at hugely subsidized tuition) will continue to be preferred over online education.

12 comments:

Swaminathan Gurumurthy said...

Hi Prof. Sanghi,

Loved the article. I think this was very insightful. But the article leaves me wondering. Are there any initiatives we can create to ensure that the change is a win win for most people? I think that might be possible if we act proactively. While the teaching itself might go online (which I feel is probably a good idea), this would give universities time and resources to instead focus on research and cultural activities by focusing more on improving their lab facilities, entrepreneurial activities and cultural platforms on campus. But in order for this to happen, I feel that the universities in India would have to act proactively and approach their US counterparts with a workable model. If we instead let the US universities to take charge, they might act in self interest to increase profits instead of trying to improve the quality of education and institutions in India. However, hoping for Indian Universities to be proactive is probably an overly optimistic position to take. But I see this as a very important opportunity. Just as the 1991 reforms in India opened up a plethora of opportunities for both Indian and foreign businesses, I feel this could do something similar in the education sector if handled properly.

Dheeraj Sanghi said...

Dear Prof. Gurumurthy,

The change is positive for both students and the foreign universities. However, it is not positive for the local universities and society in the medium to long term. It is like giving away market share to external players on a platter. I am concerned about it because I think it will be possible to provide a good quality education at a similar cost in face-to-face classes within India, but only if our regulators start putting a focus on quality. I have worked out the numbers and such a UG program where lectures are from US and campus services of a high quality are local, will cost students less than 30 lakhs for all 8 semesters. Allow local universities to charge 5-6 lakhs a year (20-25 lakhs for the degree), and they can provide an equally good education, if not better. By restricting the autonomy of local institutions, we have ensured that there is a severely limited supply of good education, and it is in this environment that foreign universities will flourish.

I too see Covid19 as an event very similar to our near-default in 1991. Just like opening up market for foreign companies forced the government to remove restrictions on local companies, I hope that the possibility of foreign universities taking away a lot of students would force our regulators to allow a lot more autonomy to local institutions. And just like then a lot of our local companies could compete with the best in the world (though many didn't), I am sure a lot of our local institutions will raise the quality enough to compete with the foreign institutions successfully.

gagan said...

As someone who taught a part of semester online at a US University, and as a parent whose son is going through an entire quarter online of a first year engineering program, I do not feel that online education has been such a success to be viewed as an alternative to real campus education. So, while Dheeraj's model is fascinating, I am somehow not seeing it as something that many US Universities will like to grow or something that Indian parents and students will opt for in large quantities. Both students and professors like to have a real contact with the other party, in my opinion. Many students and parents have been demanding that Universities should not be charging the same tuition for online education (room and board has been refunded already -- this is on top) because it is not the same experience.. Online education has been a good replacement for part-time programs (and provides more flexibility), I think it hits a ceiling rather quickly.

Dheeraj Sanghi said...

Hi Gagan, always a pleasure to read your opinion. The stats that I have are that about 16% of UG students in US are now doing the degree completely online, but of course, only ASU is the only player who also has a campus and online programs and has large students in both. But there are another 16-17% who are doing a few semesters online, a hybrid program that some of the mainstream universities are offering. And the number of online students is increasing every year. So universities will have to look at online model, if they are not looking at it seriously right now. And I think this combination of online education with some campus services will be a hit. I know of at least two examples of this happening, with a good university, one in India and one outside.

gagan said...

Hi Dheeraj,

I was looking for demongraphics of online students in US universities (online!) and came across this infographic.

https://blog.classesandcareers.com/education/infographics/student-demographics-infographic/

Some observations: online students are clearly older than traditional students (even if most are pursuing undergrad degrees) and come from lower income groups (probably wouldn't have stayed in a dorm anyways). Also, 82% of online enrollment is from those who are employed.

Another data source suggests that average graduation rate for `top 10 online universities' is 20%, compared to 59% across all 4 year colleges in the US. I would have also liked seeing the distribution of online enrollees by major pursued (i.e. what fraction of engineering students are online), but cannot find that information.

So, my summary will be that at the undergraduate level, online schools are providing opportunity to who joined workforce early and now want to finish a degree (conveniently and economically, while working at least part-time) but aren't the destination of your typical 18 year old.

Swaminathan Gurumurthy said...

Dear Prof. Sanghi,

Thanks a lot for your response. I completely agree with most of the points you made. I certainly hope that the governments would relax the regulations soon and hope the changes are positive for the local universities as well.

PS: I'm actually a PhD student at CMU. So not a Prof. :P. Although I certainly hope to be one some day. Thank you!

Swaminathan Gurumurthy said...

Dear Prof. Gagan,

I agree with your assessment that both students and Profs prefer on campus face to face teaching/learning over online programs. However, that is under the assumption that the quality of instruction of the face2face lectures are on par with their online counterparts. Unfortunately, the reality in most Indian Universities is much more gloomy at the moment. Having recently graduated from an undergraduate institution in India, I must say that most of my friends (including myself) would prefer viewing online lectures from Coursera or Swayam or their equivalents over the courses offered by our university (an IIT, which in theory is supposed to be a tier 1 institution). As Prof. Sanghi mentioned, the strong regulations in the education sector has made it difficult for the Universities to improve quality. However, note that we still valued the campus experience, not for the lectures, but for the friends we made and the activities and facilities we had access to. Hence, I can imagine all of my friends being more than happy to be a part of some sort of a hybrid that Prof. Sanghi alluded to in his blog above.

However, I am aware that the assessment is post-hoc, having experienced the system. Thus, I agree with your assessment that a large majority of parents/students would not be willing to participate in such hybrid programs to start with. It seems like a risky proposition. Hence, I imagine it will start gradually as Universities allow certain portions of their degree requirements to be completed online (as is already happening) and then gradually switch to the hybrid programs we have been discussing. It looks like Covid-19 might have sped up this process.


Dheeraj Sanghi said...

Dear Gagan,

It was indeed the business model of these large private universities that they will help those Americans complete their degree programs who had done a few college credits some time ago, and they feel that getting a college degree will help them in their career even at this late stage. But the entry of ASU has changed that and in recent years, the fresh graduates are being targeted. Second, as I mentioned above, even the mainstream universities are offering their students a hybrid model where some semesters they can spend on campus and the rest of the credits they can do online while working. But more pertinent to this blog, I didn't give examples till now because I had some privileged information. But today I have seen the following article in media which talks about several mainstream universities doing exactly what I have written in the blog, asking their international students to stay back in their respective countries and spend time on a campus of a partner university with academics being online. The URL is:

https://www.chronicle.com/article/To-Keep-International-Students/248838

You can see that several universities including Univ of Arizona, Lehigh, IIT Chicago are getting in touch with campuses around the world to host their students, and they are clearly saying that if this model works, then they can use this to increase the number of international students by a huge amount. Of course, universities which do not wish to get into online education at all and are currently doing it only to tide over the current crisis will not think of this model. But any university with an online strategy will find this model very attractive.

Dheeraj Sanghi said...

Dear Gagan, another point that I would like to make it is that what is going on right now is being termed by researchers in this domain as "Emergency Remote Teaching" as distinct from Online Education. I see some of the best courses from Coursera as very different quality than listening to a lecture online from a colleague who is excellent in classroom teaching.

Dheeraj Sanghi said...

@Gurumurthy, the issue is not whether online is better or offline. The best offline education is certainly better than the best online education with current technology and processes, partly because the education also includes many invisibles that a campus provides. But the question is different. What is the return on investment for every dollar. A 150K on-campus degree versus 75K hybrid degree, say. Is it enough to be on the campus for a few semesters. Is it enough to be on main campus for 2 semesters, and on other campuses for 3-4 semesters, if I am saving a fortune. Also, from the perspective of an Indian student: I spend Rs. 15 lakhs to get a poor quality engineering degree right now. Would a (upper) middle class Indian parent be willing to spend Rs. 30 lakhs for a significantly better quality engineering degree which includes campus experience though not on the university campus. Absolutely. It may start slowly but in a few years, I would not be surprised if the numbers are in 10s of thousands.

Unknown said...

This is an interesting perspective but it is not backed up by facts. We have been viewing the idea of finding a better way of reaching students in China and India, definitely as part of our growing MS programs. This will be a cheaper alternative for the students, presumably making us more attractive. This has not happened. Several reasons, some which may be specific to some countries but not to others: (1) Students really want the experience of learning in the US, There is a cultural capital aspect which cannot be undervalued. (2) Online education simply does not work (3) In the US, academic institutions are not for profit - if we operated in certain countries then that status goes away. There is no sense in losing revenue to taxes. I could go on but the sense is that this is just not going to happen in the foreseeable future.

Dheeraj Sanghi said...

@Unknown, Thanks for your comment. As I said, this is something new that I am seeing for the first time. So obviously, there is no data and it is only my hunch that this is likely to grow even after Covid. But I did receive emails from friends in a few US universities that mentioned that they are either doing it or thinking of doing it. So, it is non-zero. Having studied in US myself, I absolutely would want people to experience that culture. That has a huge value. But people can't always afford it. Online education is improving and is already superior to average education in India. You really have to put yourself in the shoes of a good Indian student who has missed being in an IIT, and who belongs to a middle class family, can't afford to be in US. But as I have said, it is a hunch and not based on a market survey. You seem to have done a market survey. So may be you are right. Lastly, in this model, you don't have to have a legal presence in India. From legal perspective, you are just offering an online degree program. So the tax liability does not change.