CA students are doomed to suffer from the marketing failure

CA students are doomed to suffer from the marketing failure of the ICAI.

Yesterday I got the news of the all time law pass out percentage of the CA Final exam, held in May 2010. There is no doubt that the ICAI is heavily controlling the supply of the fresh CAs in the market by brutally axing the deserving candidates.

It seems that the ICAI got more setback from the global meltdown of 2008-09 then Indian economy. Just compare the pass out figures for the last 10 exams. From more than 35% during 2006-2007, now the Final exam. pass out figure is just 3.46%. Maybe they want to tell us that after the start of the global recession, the purchasing power of the CA students has been increased and instead of studying they are wasting their time on having fun with their friends.

It is only the case of punishing the hardworking innocent students for its own failure of marketing its product (i.e. fresh CAs). There is no need to prove that Indians are the best breed in the world in the fields of academics and business. Indian businessmen converted the global recession to their advantage by selling their value for money products to the global market and  buying loss making companies around the world and converting them into profitable and cost efficient with the help of the Indian professionals and workers.

The managing council of the ICAI is comprised of old CAs, who are from small towns and don’t have any idea about of the global economy and the state of the accountancy and auditing profession worldwide. These think tanks for the ICAI protect only the interest of their voters  who are the old practicing CAs based at small towns, serving small traders. They see these fresh CA Final passouts as a direct threat to their present small town clientele. They don’t have any idea about the sea changes in the global service economy, information technology and communication facilities during the last 10 years.

If you are a CA from Bikaner, Banares or Bhopal then it doesn’t mean that you are doomed to serve the grain merchants at your hometown   @ Rs. 2000/- per audit report for the lifetime. If you can speak a little English and smart at using computers then you can earn this amount per day at Gurgaon or Banglore or may be the same amount per hour just migrating out of India.

The growth of captive and third party BPO and KPO services in the field of accountancy, taxation, financial analysis etc. at metro cities like Gurgoan, Bangalore, Mumbai, Chennai etc. have a capacity to absorb a high quantity of accountancy professionals. Beside that the fast expanding Indian MNCs need trusted Munims (read Indian CAs) to control their worldwide businesses.

So instead of declaring highly deserving candidates as failures, ICAI just needs to re-invent itself as a global supplier of finance and accounting workforce and increase the place utility of its quality product (read talented & hardworking CAs) by encouraging them to leave their hometowns and  marketing them to the buyers outside India.