Strategic Sourcing in UK Universities

What is it about?

Paper presents the findings of a research project investigating outsourcing in UK Universities revealing that whilst more market orientated universities undertake outsourcing, this is still limited to peripheral activities such as accommodation and IT. Our work found that many of the Post 1992 universities actively mobilise a state-orientated logic to protect core activities, limiting the extent to which managerial practices such as outsourcing can be implemented. Interestingly, core activities include not only research and teaching, but also social responsibility, and support to local enterprises and communities.

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Why is it important?

As tuition fees and university funding remain the subject of hot-debate and the delivery of value for money for students rises up the political agenda, universities must appeal to a more discerning student ‘market’ whilst demonstrating the efficient and effective use of resources. Successive UK governments have been driven by a market ideology to deliver policy changes with recent government initiatives calling for the use of commercial practices (e.g. outsourcing) by universities to deliver efficiencies, improve quality and support core strategies. Our paper shows that in response, novel approaches have been introduced such as collaborative sourcing models e.g. shared services and partnerships with social enterprises, local authorities and non-profits which present novel strategic options where universities can both adhere to government policy and avoid the internal organizational conflict that is often associated with the introduction of outsourcing.

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