“The Outsourcing Option”: A Cost-Saving Alternative for Higher Education
Jonesborough, TN — This week, Robin Capehart, a national consultant and former college president, discusses the pressing issue of declining student enrollment in higher education in his latest blog post titled “The Outsourcing Option.” With colleges and universities facing significant financial challenges, Capehart explores how outsourcing non-academic services could offer a viable path to cost savings and operational efficiency.
According to recent statistics from the National Student Clearinghouse Research Center, U.S. college enrollment experienced a 2.5% decrease in the fall of 2020, a trend exacerbated by the COVID-19 pandemic and reflective of longer-term enrollment patterns. This decline has prompted institutions to seek innovative cost-saving measures to maintain financial stability.
Capehart highlights the advantages of outsourcing, stating that universities can convert fixed costs into variable costs, allowing greater flexibility in financial planning. The National Association of College and University Business Officers (NACUBO) reports that outsourcing can lead to an average cost saving of 24% for participating institutions. Services such as dining, bookstore operations, and facility management can be efficiently handled by third-party providers, freeing up resources for core academic functions.
In his post, Capehart also details successful partnerships with technology companies that enable schools to expand their digital offerings without significant upfront investment. He cites CORE Education as an example of a public benefit corporation that supports higher education institutions by providing a broad range of administrative services while allowing them to retain their independence.
However, Capehart acknowledges the criticisms surrounding outsourcing, including potential impacts on service quality and local employment. He emphasizes the importance of comprehensive contract management strategies and transparent communication with all stakeholders to address concerns proactively.
Capehart advocates for a hybrid approach to outsourcing, suggesting that institutions maintain oversight of core academic functions while utilizing external expertise for non-core services. This balanced strategy can help preserve academic integrity while achieving necessary cost savings.
As enrollment declines continue to challenge higher education, Capehart’s insights present a timely and critical framework for institutions navigating these turbulent waters. By focusing on strategic outsourcing while upholding educational standards, colleges and universities can better position themselves for future success.
To read the full post, visit Capehart’s Substack log, “At a Slight Angle,” at robincapehart.substack.com and consider subscribing to receive new posts and support his work.
About Robin Capehart
Robin Capehart served as a college president for 13 years at two universities and now works as a national consultant for various colleges and universities. He resides in Jonesborough, Tennessee, and writes a weekly blog focused on higher education issues.
