An
article EduExec, a publication for executives in education systems, addressed
the issue of outsourcing. Even though it was written in 2005 and today’s
outsourcing methods have probably changed, I think it held some valuable advice
for other universities. It didn’t approach it from a certain stance as for
outsourcing or against outsourcing, but rather to point out the benefits and
drawbacks. They interviewed Margaret Plympton from Lehigh University; she is
the vice President for financial and administration. She has a lot of experience
with outsourcing, seeing as how Lehigh has been outsourcing its food service
for the past 62 years.
First
off, she points out that there are certain things that a university is
specifically good at. These things should not be looked at to outsource; it is
much easier and beneficial to the school to manage the task internally. In many
cases it is these tasks that define the university. For example, if education
and research is outsourced, it is no longer much of a university. Even a
decision to just outsource food services in a college that prides itself on its
students’ environment could cause opposition.
She also
brings up that management is much easier to find when outsourcing. Once an
employee reaches the top of their department or service they are much more
likely to search for other jobs than to stay. In bigger companies they are in
control of the staff and management is their problem.
Lastly
she brings up the point that outsourcing might not be as beneficial as the
university might think. The company’s goals are not to sell their product at
affordable prices or to improve the student’s experience, but instead to boost
profit margins to attract investors. Taxes are also an issue that will boost a
company’s prices, while university owned bookstores wouldn’t have to deal with
this.
These
are some very good points brought up by a veteran in the field of college
economics. I hope that the University of Kentucky weighed these options when
deciding to outsource our food service. I guess we’ll find out over the next
several years if this was a beneficial decision.
"Is Outsourcing An Option?: Lessons From Lehigh University." Edutech Report 21.9 (2005): 1-6. Academic Search Complete. Web. 26 Sept. 2014.
"Is Outsourcing An Option?: Lessons From Lehigh University." Edutech Report 21.9 (2005): 1-6. Academic Search Complete. Web. 26 Sept. 2014.
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