Public higher education is currently experiencing a decline in financial support from state governments, an acceleration of enrollment growth, and a shift from a transformational to a transactional student relationship. Private institutions are also struggling with increasing operational costs, and decreases in revenue from endowments and fund-raising, all of which have dictated record high tuition rates. Institutional leaders faced with rising costs and falling resources have fewer options from which to choose in order to maintain the fiscal health of their institutions. Outsourcing provides the benefits of services provided by specialists with expertise, and the availability of the economies of scale to reduce the cost side of an institutional ledger. If institutional mission is clearly defined, and the academic program delivered is directly linked to this mission and approved by the faculty, online courses and those drawn from open educational resources can provide counters to the fiscal challenges of the twentyfirst century.

Keywords

evolution · higher education · outsourcing