Cost-Cutting in Higher Education: Lessons Learned from Collaboration, Technology, and Outsourcing Initiatives. Draft.

This document presents a review of cost-containment initiatives relevant to higher education institutions. Originally commissioned to examine cost containment initiatives carried out by institutions affiliated with the Foundation for Independent Higher Education (FIHE), the paper was expanded to include a sector-wide review of three types of cost-cutting initiatives--collaboration, technology, and outsourcing. The paper is organized around an introduction, which covers the background, purpose, methodology, and organization of the study, and separate sections that discuss benefits and limitations, provide examples, and make recommendations for each type of initiative. A final section deals with efforts by the three California state higher education systems to improve efficiency and maintain quality through short-term cost reductions, such as salary and hiring freezes, across-the-board cuts in various services, and early retirement incentives, and long-term cost reduction and quality improvement incentives such as total quality management and resource cost management. Also noted are programs reported by the National Association of Independent Colleges and Universities, the Center for Planning Information, and the League for Innovation in the Community Colleges. Appendixes include the FIHE survey results; a descriptive of a Partnership for Private Colleges program; additional data sources; and a list of key questions for higher education decision makers. (Contains 74 references.) (CH)