Thirty years ago in higher education, outsourcing was a curse word and only used at some universities in relation to food services and bookstores. Since that time, universities have realized that 1) they are not the experts in managing many of the services they provide on college campuses, 2) there are many companies that can manage non-core services more efficiently, and 3) there are substantial savings that can emerge by carefully creating contracts that expand outsourcing.
In 2014 I served on a committee at Baylor University that was focused on bundling all our major outsourced contracts and negotiating a new agreement that was worth hundreds of millions dollars over a decade. The companies bidding on the Request for Proposal were so interested, committee members were receiving IPads and other assorted gifts that accompanied their proposals. (We had to give anything worth over $100 back.)
I learned so much through this process that I ended up partnering with Baylor’s food service provider, Aramark, to present at a national conference on how to best structure an outsourced approach to campus dining. Today, I still believe there are major financial benefits to be discovered with outsourcing, but only the best universities are negotiating these contracts with a mind’s eye toward best practices.
As one of Baylor’s Vice Presidents told me when I was pushing for thousands of outsourced employees to receive a living wage from the company we were negotiating with, “Jeff, Baylor wants them to pay these employees less money so we can save money and not be directly responsible for their standard of living.”
In short, there are plusses and minuses to outsourcing – but any university not open to learning how to best approach these opportunities will be in a much more difficult position when it comes to saving money.
Administrative and Operational Services
- Payroll Processing: Managing employee salaries and benefits.
- Human Resources: Recruitment, training, and employee management.
- IT Support: Help desk services, software development, and infrastructure management.
- Data Management: Cloud storage and database maintenance.
- Financial Aid Processing: Managing applications and awards.
- Admissions Support: Handling application processing and student outreach.
- Legal Services: Contract reviews and compliance checks.
- Procurement: Sourcing and purchasing goods and services.
2. Facilities and Maintenance
- Custodial Services: Cleaning and janitorial work.
- Building Maintenance: Repairs, HVAC systems, and electrical work.
- Groundskeeping: Landscaping and maintenance of outdoor spaces.
- Waste Management: Trash collection and recycling services.
- Construction Management: Overseeing new construction or renovations.
3. Auxiliary Services
- Dining Services: Cafeterias, catering, and meal plan operations.
- Bookstores: Managing on-campus and online textbook sales.
- Housing Management: Dormitory operations and maintenance.
- Parking Services: Parking management, permits, and enforcement.
- Transportation: Campus shuttle systems and fleet management.
- Event Planning: Coordinating conferences, weddings, and other events.
4. Academic and Student Support
- Online Course Development: Partnering with Online Program Managers (OPMs) for digital learning.
- Tutoring Services: Outsourced tutoring or academic support centers.
- Counseling Services: Mental health support through external providers.
- Testing and Assessment: Administration of standardized tests and grading.
- Library Management: Cataloging, subscriptions, and digital archiving.
- Career Services: Resume workshops, job placement assistance, and internship coordination.
5. Technology and Digital Services
- Learning Management Systems (LMS): Platforms like Canvas, Blackboard, or Moodle.
- Cybersecurity: Threat monitoring and response.
- Telecommunications: Phone and internet services.
- Software Licensing: Procurement and management of academic tools.
- Website Development: Maintenance and upgrades for university websites.
- Streaming Services: Managing online lectures and campus events.
6. Marketing and Communication
- Social Media Management: Engaging with prospective and current students.
- Advertising Campaigns: Creating and running marketing strategies.
- Alumni Relations: Managing outreach and donation campaigns.
- Print Services: Producing promotional materials like brochures or banners.
7. Health and Wellness
- Student Health Services: On-campus clinics operated by external providers.
- Fitness Center Management: Running gyms and wellness facilities.
- Mental Health Services: Counseling and crisis management.
- Health Insurance Plans: Managing student and employee insurance policies.
8. Security and Safety
- Campus Security: Security personnel, surveillance systems, and emergency response.
- Fire Safety: Inspection and maintenance of fire prevention systems.
- Environmental Compliance: Ensuring adherence to safety regulations.
9. Research and Development
- Lab Equipment Maintenance: Servicing and calibration.
- Grant Writing Support: Assisting faculty with funding proposals.
- Data Analysis: Outsourcing specialized analytics for large datasets.
10. Revenue-Generating Services
- Athletic Facilities: Outsourced management of stadiums or sports events.
- Conference Centers: Organizing and hosting events for external groups.
- Licensing Agreements: Partnering for co-branded products.
- Laundry Services: Providing and maintaining laundry machines and service
- Vending Services: Providing vending machines
Deep Thoughts on Higher Ed and Life 