Outsourcing Managed IT Services for Higher Ed: Navigating Complexity, Cost, and Control Concerns

College administrators know that technology can be a powerful tool for improving operations and boosting student success. However, given the rapid pace of technological change and the shrinking pool of qualified IT professionals, getting a real return on IT investments can be a major challenge.

One way to deal with these challenges is to outsource IT management and operations, and explore managed IT services for higher education.

While change can seem daunting, IT outsourcing can significantly improve overall IT management and strategic focus while mitigating risk and reducing cost. It’s about more than just maintaining IT infrastructure and operations –– it’s about using technology strategically to create better student experiences and drive institutional success.

Complexity: Streamlining the Transition

One of the primary concerns I hear from administrators is the perceived complexity of moving to an outsourced IT model. Such a move impacts people, processes, and technology – so if not managed thoughtfully, unintended consequences could occur.

However, a well-structured transition plan significantly simplifies the process and minimizes risk to business operations during the transition. At Collegis, we employ a phased approach, starting with a thorough assessment of an institution’s current IT ecosystem, including resources, processes, financials, systems, infrastructure, projects, operations, etc. This assessment forms the foundation of a customized transition plan designed around the institution’s unique needs, outlining each step – from stabilization and standardization to technology optimization and, finally, transformation.

A key element of our approach is the stabilization phase, where we address immediate pain points and ensure that systems are secure and able to support day-to-day operations with no disruptions. This initial phase creates the foundation from which to build on and, ultimately, a level of confidence that sets the stage for longer-term improvements.

By breaking the transition into manageable phases and providing clear communication throughout the process, we alleviate much of the anxiety associated with change. Instead of a big “lift and shift,” the multi-year transition plan means current systems and processes continue to be supported. Administrators often express relief once they understand our structured approach and how it addresses their specific needs.

For example, our managed IT services solution for Saint Francis University involved stabilizing the core technology and infrastructure, standardizing expectations through strong IT governance (including installing a virtual CIO), and optimizing business processes and infrastructure for increased efficiency. This identified $200,000 in budgetary waste that was able to be reallocated toward technology upgrades.

Cost: ROI Beyond the Bottom Line

Cost is, of course, a major factor in any IT outsourcing decision. Administrators are understandably concerned about the financial implications of outsourcing.

Studies show that many higher education institutions spend more than 75% of their IT budgets on basic support and technology maintenance. This is partially due to the technology debt that accrues after years of neglect and a lack of the precise skill sets needed to address deficiencies and create more efficient and effective operations. Just think of the impact technology could make if schools could reduce this amount by 25%+ and reallocate these dollars to improving student experiences or driving institutional cost savings.

Outsourcing can free up these valuable financial resources, enabling institutions to focus on projects that drive growth and enhance the student experience. Collegis partners typically experience:

• Predictable budgeting: We offer all standard IT management services through a clear and transparent fixed fee mutually determined for the life of the partnership so institutions know exactly what they spend for IT management every year. There are no surprises.
• Access to top IT talent: While Collegis goes out of its way to assess existing staff and rebadge those who have the needed skill sets and cultural fit, we also bring a team of more than 185 IT professionals to our partnerships, ensuring schools have access to the right skillsets at the right time.
• Better contract negotiations: Schools benefit from Collegis’s expertise in IT contract negotiations and cross-institutional expertise during all technology contract negotiations. We have long-term relationships with third-party vendors and can negotiate from a position of strength because we support dozens of similar institutions.
• Lower cybersecurity costs: We handle network, application, and data security, reducing a school’s need for additional resources or security solutions. Our partnerships have also helped many schools successfully stabilize or even reduce their cybersecurity insurance premiums.
• Elimination of consulting fees: Our model also eliminates the need for expensive consultants to fill staffing gaps or deliver strategic projects.

Most schools find that an IT managed services partnership with Collegis either saves them money or is cost-neutral. Our economies of scale enable us to provide expert services at a lower cost than most institutions could achieve in-house. Plus, we provide clear service level agreements (SLAs) to ensure accountability.

Beyond cost savings, outsourcing can also improve ROI by ensuring technology investments deliver their intended value. By leveraging the expertise of a dedicated IT partner, institutions can optimize their systems and ensure they are getting the most out of their technology investments.

Control: Maintaining Oversight and Ensuring Security

Some administrators worry about losing control when they outsource IT. They’re concerned about relinquishing oversight of critical systems and data. However, a well-designed outsourcing agreement includes clear governance structures and communication channels, ensuring they retain control.

One way we’ve addressed this concern is by establishing a steering committee for IT governance that includes representatives from the institution’s leadership and fosters collaboration and shared decision-making.

Data security is paramount, and we understand the sensitivity of institutional data. We are a SOC 2-compliant organization that undergoes regular external audits to ensure the security and integrity of the data we manage.

Our dedicated information security officers (CISOs) work closely with each institution to implement best practices and address any security concerns. We also proactively monitor systems for potential threats, leveraging our experience working with multiple institutions to identify and mitigate risks before they escalate.

Getting More Out of IT investments

Outsourcing IT management in higher education can be a game-changer for institutions looking to navigate the complexities of the evolving IT landscape. Working with a partner that focuses on open communication, a phased approach to transitioning, a stronger cybersecurity posture, and leveraging your technology’s true potential can eliminate concerns about complexity, cost, and control while enabling schools to achieve strategic goals.

Finally, when considering IT outsourcing, institutions cannot underestimate the importance and value of cultural fit. Finding a partner who shares your values and can be trusted to run a critical function for your institution is just as important as any of the other considerations I’ve highlighted above.

— Kim Fahey, CEO Collegis Education