Outsourcing in higher education: the known and unknown about the practice

Outsourcing or privatising services in higher education is a common practice, but what do we really know about it? Is outsourcing effective? It is imperative that these questions be addressed since outsourcing is becoming a norm in higher education institutions. Scholars, institutional administrators and policymakers need to understand the outsourcing phenomenon and whether it is beneficial. However, there has been little research documenting the cost-effectiveness or difference in the quality of service associated with outsourcing. This study reviews 30 empirical articles to find out whether outsourcing is effective, examines the knowns and unknowns about outsourcing, and the theories often used in outsourcing in higher education. The findings show that the effect of outsourcing varies across the institution, and ranges from the positive, negative, mixed, to no effect. Over time, outsourcing may become expensive for both institutions and students because of the profit factors intrinsic within private enterprises.