About the Webconference
Contracted services are not a new strategy for higher education institutions. In fact, most institutions have contracted or outsourced some task or function within their Facilities division. However, in the past, senior leaders focused outsourcing arrangements on only a handful of areas (such as custodial services, auxiliaries, and highly specialized tasks). Today, higher education leaders increasingly view outsourcing arrangements as a potentially effective solution to the growing pressures facing their Facilities
departments.
Historically, senior leaders in higher education have approached outsourcing primarily as a cost-cutting strategy. Specifically, for many institutions, outsourcing has helped alleviate budget pressures brought on by dwindling enrollments and/or declining state support. The University of Alaska Fairbanks, for instance, outsourced 75% of its custodial services in 2003 as part of a general cost savings exercise. However, in 2011 the institution outsourced the remaining 25% of its custodial services during an enrollment decline, saving an additional average of $900K per year.
This resource is part of the Optimize Your Facilities Outsourcing Arrangements Roadmap. Access the Roadmap for stepwise guidance with additional tools and research.
Contracted and outsourced arrangements take on many forms, reflecting the strengths and needs of both institutions and vendors. Arrangements range from hiring a small vendor to remove snow or maintain elevators to entrusting the entire operations of Facilities to a third party. While these options share a common purpose of delegating work to another party, they diverge heavily in their execution.
This 30 minute webconference highlights six considerations Facilities leaders should analyze when deciding whether to outsource a function. The presentation then concludes with detailed information on how to structure successful outsourcing contracts and manage the vendor relationship on campus.