Does having an MBA pay in the world of financial services IT?

More and more IT candidates have MBAs, say recruiters. But you're better off having experience.

"There is no real substitute for experience," says Ben Jones, consultant for IT recruitment firm JM People.

According to Jones, some senior IT in finance roles now call for candidates with an MBA, but their numbers vary from company to company. "And most roles calling for MBAs are flexible if the skills and experience are superb," he adds.

Samuel Gibbins, a consultant at recruitment agency Huxley Associates, agrees: "Having an MBA doesn't have much sway. It's good to have, but at the end of the day it doesn't make much difference. It is more beneficial to have experience than an MBA."

Less than half of IT candidates today have MBAs, recruiters estimate. But this figure is gradually increasing because people still believe an MBA will boost earning potential and career opportunities.

But this is not the case, says Gibbins. "There is little difference in salaries between MBA holders and non-degree holders in similar roles," he believes.

An MBA may make a difference in front-office IT roles and among the more senior roles such as project managers, where knowledge and ability to interact with the business side is a job requirement. Individuals can get this business knowledge from an MBA programme, Gibbins explains.

Many IT candidates have an MBA from Cass Business School, which is based in the City and offers part-time programmes.

But going for an MBA can incur opportunity costs. "The longer a candidate takes time out, the more likely it is you will miss out and lose touch with the changes in the marketplace," says Gibbins.