Summary: London Metropolitan University Outsourcing

Objective: This report evaluate decision made by London Metropolitan University (LMU) to outsource service the possibility of outsourcing teaching from the article written by Vasagar, J. (2012, August 15).

1. Motives for Outsourcing:

1.1. Focus on core business: LMU can focus and invest in the teaching staff and work on enhancing the education system.
1.2. Cost Reduction: By outsourcing the auxiliary services like IT, library, student counseling, LMU would be saving on a lot of money. Also it would save on the operational and recruitment costs associated with the recruitment of in-house staff, since it’s eliminated.
1.3. Tax incentive: LMU enjoys VAT exemption for services shared between organizations. Tax policy is in favor of outsourcing
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It will be highly profitable, lesser administrative workforce and reduce the over-head cost of maintaining service staffs.
2.3. LMU will gain more time and money to concentrate on enhancing the education system and bring it to a world class level.
2.4. New employment opportunities will be created in the outsourcing agency for the LMU project.
2.5. With the huge savings incurred, it will be able to create more teaching jobs in LMU and can increase their class size and will lead to a sustainable business expansion.
2.6. LMU will have time and money to enhance and strengthen its marketing strategies and campaigns worldwide.
2.7. With outsourcing, LMU accounts will be able to maintain an easier and healthy balance sheet which will help them define clearer goals with the required budget.
2.8. By increasing the salaries of the teaching staff, LMU will be able to attain a higher level of job satisfaction among the staff. This will also drive their motivation for better performance.
2.9. It will help LMU to reach a more competitive edge over others because by engaging more staff to indulge in producing quality research papers, it will attract students from
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Prepare a back-up plan: Incase, the current agency is unable to deliver results on time or is tampering the quality of service, then LMU should have devised a back-up plan (to keep another agency in the list to replace the existing (or) a plan to set up a subsidy company of its own).

5. Cases/ Situations when teaching may be outsourced:

5.1. Reliable and expert agency: LMU will consider teaching outsourcing if the third-party organization meets or excels the current quality of teaching methodologies employed that won’t damage LMU’s reputation and image.
5.2. Budget overrun: If LMU has budget constraints to employ all full-time professors, and then LMU may resort to a few part-time professors or on contractual basis.
5.3. Drop in incoming students: If there is a heavy dip in the number of applicants for a particular course/department, then again LMU may outsource teaching for that particular department. Additionally, teaching could be online by any competent teacher from anywhere in the world.
5.4. Striving for Excellence :If XYZ country/city is excelling in a particular field of study and research for decades now and LMU wishes to excel by providing world class education, then it may again outsource teaching (by online means) so that its students get exposed to the best and this will boost LMU’s rank in ranking

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