Outsourcing in education management: approaches, types and models

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Outsourcing in education management: approaches, types and models

Kolisnichenko Natalia Mykolayivna Doctor of Sciences in Public Administration, Full Professor, Head of the Social and Humanitarian Sciences Chair, Institute of Public Service and Management of the Odesa Polytechnic National University

Abstract

The article examines the meaning of the term `outsourcing' as the use of external resources by an organization to solve its own internal problems, as a form of collaboration between enterprises, as the transfer of certain organizational elements to third parties, as an organization's management strategy.

It has been proven that outsourcing is one of the most modern and successful management models, which allows the organization to achieve its real competitive advantages. Due to the fact that competition is intensifying today, every organization is forced to make a decision to outsource it's certain functions. Among the reasons for the use of outsourcing in management, the following are mentioned: steady growth in the number of functions and labor operations, as well as their complexity, which is characteristic of modern socio-economic dynamics; the need to improve the quality of the performance of labor functions, which is possible only with the involvement of external specialized organizations with a more qualified workforce; the desire to reduce costs for non-core activities, including the reduction of employees; the desire to focus one's capabilities and resources on a limited number of functions and jobs being performed.

The outsourcing models as task outsourcing, selective outsourcing, complex outsourcing are classified and the cases of their implementation in education management are revealed. The two evident cases in education services provision are studied and concluded that educational institutions often act both in the role of suppliers and in the role of consumers, forming complex networks of interactions.

The management of education, which is focused on the effective use of resources and the development of the educational institution, is considered as a set of measures to solve the problems caused by the need for its effective functioning and development.

The strategic tasks of the education institution in organizing outsourcing in management are analyzed: implementation of strategic planning with the mission of the educational institution to improve the quality of education, maximize profit, optimize the structure and ensure the financial stability of the institution; creation of an integrated information management system for managing the educational process; solving organizational tasks related to the creation of an effective system of financial accounting, integrated planning, budgeting, assessment of information flows that regulate not only document flow, internal management reporting, but also training results; flexible use of resources for successful positioning and formation of a positive image.

The main organizational models of outsourcing in the system of education are defined including structural subdivision, creation of educational infrastructure, cofounding of new education entities, such as various education/training centers.

Keywords: outsourcing, education outsourcing, outsourcing in education management, outsourcing models, approaches to outsourcing.

Колісніченко Наталя Миколаївна доктор наук з державного управління, професор, завідувач кафедри соціально-гуманітарних наук, Інститут публічної служби та управління Національного університету Одеська політехніка

АУТСОРСИНГ В УПРАВЛІННІ ОСВІТОЮ: ПІДХОДИ, ВИДИ ТА МОДЕЛІ

У статті розглядається зміст терміну "аутсорсинг" як використання організацією зовнішніх ресурсів для вирішення власних внутрішніх проблем, як форма співпраці між організаціями, як передача певних організаційних елементів третім особам, як управління організаційною стратегією.

Доведено що аутсорсинг є однією з найсучасніших та успішних моделей управління, що дозволяє організації досягти своїх реальних конкурентних переваг. З огляду на те, що на сьогодні актуалізується загострення конкуренції, кожна організація змушена приймати рішення про передачу певних функцій на аутсорсинг. Серед причин використання аутсорсингу в управлінні виділяються такі: неухильне зростання кількості функцій і трудових операцій, а також їх ускладнення, що характерно для сучасної соціально-економічної динаміки; необхідність підвищення якості виконання трудових функцій, що можливо лише за умови залучення зовнішніх спеціалізованих організацій з більш кваліфікованою робочою силою; прагнення зменшити витрати на непрофільну діяльність, у тому числі скорочення працівників; прагнення зосередити свої можливості та ресурси на обмеженій кількості функцій і робіт, що виконуються.

Надається класифікація таких моделей аутсорсингу, як аутсорсинг завдань, вибірковий аутсорсинг, комплексний аутсорсинг та розглядаються випадки їх впровадження в управління освітою. Досліджуються приклади надання освітніх послуг у режимі аутсорсингу і робиться висновок, що навчальні заклади часто виступають як у ролі постачальників, так і в ролі споживачів, утворюючи складні мережі взаємодії.

Розглядається управління освітою, яке орієнтоване на ефективне використання ресурсів та розвиток закладу освіти, як комплекс заходів щодо вирішення завдань, зумовлених необхідністю його ефективного функціонування та розвитку. management strategy outsourcing

Проаналізовано стратегічні завдання закладу освіти щодо організації аутсорсингу в управлінні: реалізація стратегічного планування з урахуванням місії закладу освіти щодо підвищення якості освіти, максимізації прибутку, оптимізації структури та забезпечення фінансової стабільності закладу; створення інтегрованої інформаційно-керуючої системи управління навчальним процесом; вирішення організаційних завдань щодо створення ефективної системи фінансового обліку, інтегрованого планування, бюджетування, оцінки інформаційних потоків, які регулюють не тільки документообіг, внутрішню управлінську звітність, а й результати навчання; гнучке використання ресурсів для успішного позиціонування та формування позитивного іміджу.

Визначено основні організаційні моделі аутсорсингу в системі освіти, включаючи функціонування структурного підрозділу, створення освітньої інфраструктури, співзасновництво нових суб'єктів освіти, таких як різноманітні освітні/навчальні центри.

Ключові слова: аутсорсинг, освітній аутсорсинг, аутсорсинг в управлінні освітою, моделі аутсорсингу, підходи до аутсорсингу.

Formulation of the problem. Institutional transformations in Ukrainian society, as a result of socio-economic reforms at the beginning of the 21st century, did not provoke the same profound changes in the education system. The Ukraine educational system was able to adapt to new conditions, survive in the short term, but did not abandon the reproduction of the principles of the Soviet education system with its characteristic practices of centralized management and strict regulation of the educational process, thereby making long-term development impossible.

Nowadays there is a growing need to increase the degree of compliance of the graduates' competencies in the national system of education with the requirements of the modern labor market in the context of transforming the Ukraine economy into an economy of computer-network knowledge; there is the emerging national field of education's transfer process based on long-term contracts of individual functions of one educational institution to another. This type of relationship is fixed in the concept of "educational outsourcing" which reflects the process of functional integration of various actors participating in education.

The transformations in education management are connected with the necessity to consolidate the interests of participants in the educational services provision, to formulate new rules of the `game', to propose mechanisms for the institutional transformation of education, to interest the "players". The possibilities of educational practice are expanding faster than its legislative and financial support. Participants in educational relations are ready for the introduction and wide use of new educational models of interaction (distance interaction, e-learning, educational outsourcing).

However, at the regulatory level, these issues are not resolved. The legal, organizational and economic principles of education in Ukraine, the main issues of state policy and the general rules for the functioning of the education system and the implementation of educational activities, the legal status of participants of education are established by the Law of Ukraine `On Education' [8].

The positive experience of using outsourcing of non-core functions by educational institutions, especially working in the new conditions of the digital space, enables the possibility of using the outsourcing mechanism in the implementation of basic and additional educational programs by educational institutions.

Analysis of recent research and publications. Formation of the mechanism of educational outsourcing of an autonomous education institution is a focus for study within the theory of competitiveness (M. Porter, G. Khamel and others) and knowledge-based economy (B. Milner, R. Williams, L. Edvinsson and others). Most of scientific works on outsourcing are focused on the study of outsourcing in the industrial sector, in particular they examine legal and organizational approaches of outsourcing; study the development of areas for application and implementation of outsourcing in the activities of enterprises, reveal the management model based on the use of outsourcing. The peculiarities of organizational models of outsourcing in the system of higher education are analyzed by Chekalovska H., Husenko T., Serbinovskyi B. and others [11, 13]. Various definitions of outsourcing implementation methods in the education management system are summarized and systematized by Fasolia O., Khmyrov I., Markhlievski V., Seitosmanov A. And others [3, 10-12].

The purpose of the article. The purpose of the article is to reveal the perspective approaches to outsourcing in education management.

Presenting main material. Outsourcing (from the English `external source') is the transfer of certain business processes or production functions by the organization to another company specializing in the relevant field. In the literal sense, the concept of "outsourcing" means "use of external sources". Outsourcing represents such organizational development opportunities that are created by attracting external resources instead of creating limited or expensive internal ones. Generally, the meaning of outsourcing comes down to a simple formula: focus all resources on the type of activity that is the main one for your organization, and transfer other (supporting, accompanying) functions to a reliable and professional partner [1].

A definite case of outsourcing is the complete transfer of the performance of a certain function to an external organization. External organizations have more experience and more in-depth specialization than internal departments. So, the outsourcing model makes it possible to delegate the performance of a number of supporting functions to third parties (outsourcers), which, unlike the contractor, can use both the customer's and their own resources. Outsourcers, as organizationally independent suppliers, constantly reproduce competitive relations in terms of time, goods, resources, and functions sharing to ensure the quality of products and services.

Outsourcing is one of the most modern and successful business models that allow an organization to achieve its real competitive advantages. Today, every organization is forced to make decisions on the transfer of some definite functions to outsourcing. With the intensification of competition, those organizations that focus on key points will gain an increasing advantage.

In general, outsourcing is based on the organizational and economic idea that under fierce competition, an organization cannot carry out all its inherent activities and functions independently and with high efficiency. The focus on optimizing internal processes is giving way to building effective channels of interaction with customers, suppliers and other counterparties of an organization. Therefore, it should leave in its jurisdiction only the main, core activities and functions that identify it in the product market, and all other work and functions should be transferred for execution to specialized outsourcing firms. For the majority of business entities, the secondary types of work and functions which are transferred for execution to outsourcing firms are accounting, recruitment, security, legal services, IT support, etc.

Among the reasons to use outsourcing by business entities are the following:

- steady growth in the number of functions and labor operations, as well as their complication, which is typical for modern socio-economic dynamics;

- the need to improve the quality of labor functions execution (especially when there is a lack of opportunities for their own staff), which is possible only if external specialized organizations with a more qualified workforce are involved;

- striving to reduce costs for non-core operations, including the reduction of employees;

- the desire to focus their capabilities and resources on a limited number of functions and work performed.

The analysis of numerous research by various authors and their interpretations of outsourcing allows us to conclude that outsourcing has several aspects [1, p.25]. First, outsourcing is the use of external resources by an organization to solve its own internal problems. This aspect is emphasized by economists [3, 6, 9]. Second, outsourcing is a form of collaboration between organisations [4, 5], when for all types of activities, which are not dominant in the organization, the subcontracts are signed with the companies specializing in them. Thirdly, in practice, outsourcing is expressed in the transfer of certain organizational elements of the organization to third parties, which, for an appropriate fee, manage these elements and perform specially agreed tasks. And, finally, outsourcing is an organisation's management strategy [2, 6], which consists in externalization (transferring individual operations to independent firms) and increasing competitiveness. All of the approaches, in one way or another, define the content of outsourcing, focusing on different functional aspects of its application.

The use of outsourcing allows organizations to increase the flexibility and efficiency of management in an unstable environment, while maintaining their activities, reduce costs (including personnel), and, ultimately, increase their competitiveness [7].

In practice three vectors of integration of an organization in business space are defined:

- monopoly, when the organization seeks to perform independently the maximum number of functions;

- integration of the outsourcing type, when the business structure is oriented towards the rational transfer of functions to partners while retaining only those functions which support its main competitive advantages;

- virtual type integration - network organizations.

Outsourcing is a key element of flexible and effective management, for instance in providing education services, primarily cost and quality. Unlike services, which have a one-time, episodic, random nature and are limited in their provision, the functions of professional support of individual systems and infrastructure are usually outsourced on the basis of long-term interaction (at least 1 year).

The introduction of outsourcing in education management fosters the usage of new concepts: "educational outsourcing of an autonomous institution", "competitiveness of an autonomous institution", "outsourcing in educational services provision" etc.

The content of the educational outsourcing is the need and possibility of transferring the educational functions and relevant resources to external performers who can organize the educational process in certain areas, programs, subjects and modules more effectively [13]. Thus, educational outsourcing is understood as the transfer, on the basis of long-term contracts, of certain educational functions of one educational organization to another. At the same time, the latter can be an element of both the educational system and belong to a different functional system.

In education system the same variety of outsourcing models can be classified and used:

1) task outsourcing is an approach when the organization relies on an external resource to solve a definite task. As a rule, the solution of this task within the organization is connected with the need to purchase some equipment or other assets. As an example, the task of printing (or copying printed) materials, which many organizations prefer to solve by involving specialized service companies;

2) selective outsourcing is an approach when the organization relies on an external resource to implement an element of the process. For example, to hold a conference, an educational institution invites a company that sends out invitations and registers visitors;

3) complex outsourcing is a transfer of traditional non-key functions of the organization (such as, for example, accounting or advertising activities) to external contractors, that is subcontractors, highly qualified specialists of a third-party company.

Task outsourcing. Educational outsourcing is an innovative technology for attracting external resources for education and educational technology that operates in a new practice-oriented educational environment and offers budgetary savings. Each education institution as a market participant strives to provide an educational service at a high-quality level, taking into account the contemporary requirements. Today it becomes possible with the flexible use of outsourcing elements, which create conditions for the effective use of the services of third parties and organizations, attract highly qualified specialists, software products, electronic technologies, renting premises in the educational process while executing definite educational tasks.

Selective outsourcing. At the same time, it is worth considering the elements of the educational process that can be implemented in an organization or educational institution in the outsourcing model:

- service in designing educational, methodological and thematic plans, training programs;

- service in the development of electronic educational resources;

- service in attracting and registering persons who are studying;

- educational process support service;

- directly educational service (teaching services);

- services of control measures and analysis of feedback from students.

Complex outsourcing. If the organization is considering the possibility of using complex outsourcing, then the executor can implement the following processes in the future: analysis and assessment of training needs; development of a personnel training strategy in the organization; management of the training project in the organization; evaluation of the effectiveness of training in the organization; consulting on personnel productivity management in the organization; consulting on organizational development and change management in the organization [12, p. 182-183].

There are two evident cases in education services provision. First, when large organizations use complex outsourcing in the field of educational services since training is not the main type of their activity. In this case, the educational institutions are the providers of such services, that is, they participate in the outsourcing process as external contractors. Second, when education institutions provide the outsourcing of tasks and elements, for instance, of the e-learning process, that is, the actual use of didactic and IT services. As we see, educational institutions often act both in the role of suppliers and in the role of consumers, forming complex networks of interactions.

Outsourcing as a mechanism for the formation of network organizational structures combines the competencies of various subjects of the educational area through network interaction between organizations, resulting in an increase of innovations [2] and their implementation. For instance, outsourcing as an organizational mechanism for the exchange of formal and informal knowledge between commercial structures and autonomous educational institutions ensures the achievement of the following results: reduces the bureaucratization of management, reduces the number of management levels; promotes teamwork among employees; identifies leaders who are willing to take responsibility for the risk; intensifies internal and external competition; creates partnership management structures based on the diversification of functions and resources; transforms formal knowledge into applied competencies; ensures the transparency of the innovation flows between organizations.

Educational outsourcing allows the customer, that is an educational institution, to take advantage of the intellectual and organizational resources of other participants in the educational process (colleges, universities, other educational and scientific organizations, educational and cultural centers, consulting firms, business entities that act as outsourcers) and, integrating knowledge (qualifications, competencies) available to the outsourcer, improve the quality of education, improve the educational space and expand the educational environment, improve economic performance indicators and manage new innovative opportunities.

Educational outsourcing is able to realize the potential of several educational institutions and provide equal access to advanced technologies and forms of education, guarantee equality and increase the market competitiveness of the institutions and their students/graduates. Thus, the development of educational outsourcing makes it possible to change the educational platform and improve the quality of graduates, reduce costs, make advanced technologies available, improve the quality of general cultural and professional competencies, and establish long-term ties between colleges, universities, and other organizations-stakeholders.

The transition to educational outsourcing requires appropriate legal and organizational support, which is associated, among other things, with the removal of inconsistent legislation. Legislation should regulate redistribution of functions within educational outsourcing and delegation of powers to public institutions: associations of employers; educational organizations; professional societies; army; households (family); churches, mass media; scientific organizations. An important indicator in the transition to educational outsourcing can be "contractual decentralization", which is the transfer of powers to perform a number of functions from the governments (public authorities) and educational organizations to independent organizations (public institutions) on a contractual basis. For example, the signing of agreements with various public institutions (parents, employers, advanced training institutions, etc.) to finance targeted projects (for example, employment, civic education, etc.).

To assess the economic feasibility of using outsourcing to improve the quality of the educational process, an efficient management system is needed.

The activities in the field of educational services provision confirm that the introduction of outsourcing into the management system contributes to the improvement of the entire process of managing the education institution, creates real opportunities for its improvement as a result of optimizing financial, technical and information flows.

Education management is focused on the efficient use of resources and the development of the education institution. So, education management is a set of activities to solve problems caused by the need for effective functioning and development of an educational institution. It combines the efforts of all types of management to solve the main tasks of managing objects (chairs, departments etc.) of a complex educational process.

In other words, it is the activity that contributes to obtaining a synergistic effect as a result of an organic symbiosis of management accounting, planning, and information technologies in the field of education. The need to create such symbiosis is caused by the following tasks: the formation of a unified information system of education, which provides monitoring of the results of the education process, necessary for the analysis of tactical and strategic plans for the development of the educational institution; the revealing of goals and development of recommendations for educational activities in making strategic decisions, tactical plans, operational programs in terms of their resource support in the educational process; establishment and application of measures on social responsibility to society in the training of specialists. It is the outsourcing system that makes it possible to use the services of highly-professional Ukrainian and foreign specialists in the process of transitioning to a new educational process within the bachelor's and master's programs.

One more main purpose of outsourcing functioning in education management is to meet the infrastructure needs of the educational process to develop optimal management decisions, control their implementation, achieve the desired results, taking into account competitiveness relative to other educational institutions.

The strategic tasks of the education institution in organizing outsourcing in management include:

- implementation of strategic planning, taking into account the mission of the education institution to improve the quality of education, maximize profits, optimize the structure and ensure the financial stability of the institution, taking into account the problematic demography in the country and the Russian invasion to Ukraine;

- the creation of an integrated information and control system for managing the educational process;

- solving organizational problems to create an effective system of financial accounting, integrated planning, budgeting, evaluation of information flows that regulate not only document flow, internal management reporting, but also the results of training;

- flexible use of resources for successful positioning and formation of a positive image.

This list of tasks for the education institution is indicative since today only fragmentary cases of outsourcing in the management system of the institutions are known.

The constituent component of the educational management process is the quality of education, analysis and organization of the educational process, it's planning, systemic quality control. The process of assessing the quality of training presupposes two components - educational and professional.

Summarising the above thesis we can define the main organizational models of outsourcing in the system of education.

I. Structural subdivision (for example, for advanced training), which uses the premises, the educational center with a license and has a sub-account as part of the financial account of the institution. Such a unit independently organizes the educational process, is free to choose programs and teachers, has its own leader and functions on a percentage of income in accordance with the regulation on selfsupporting activities. The components of educational outsourcing in this model are isolation of one of the educational functions; designing the organizational structure of management; development and implementation of innovative programs and technologies; stimulation of competitive relations between teachers on the basis of questionaries for students.

II. Creation of an educational infrastructure based on horizontal cooperation between an autonomous educational institution and industry enterprises. These include individual jobs (posts); workshops, laboratories, training facilities, branches, educational centres; educational firms, business incubators. The legal basis for relations between the parties is an agreement (paid services, gratuitous use of property, etc.). The components of educational outsourcing in this model are: improving the quality of training by adapting it to the needs of the labor market for qualifications (competencies) and providing places for practice/internship; stimulating the mobility of students and teachers across infrastructural units to improve qualifications; strengthening the contribution of education to the socioeconomic and cultural development of the region; removal of barriers between formal, non-formal and spontaneous education; reducing the training period and saving financial costs with the cooperation of resources.

III. Co-founding of new education entities, such as various education/training centers. Such centers will have their own license for educational activities, staffing, and an independent current account. The institutionalization of new models and mechanisms for the management of education with the participation of public institutions involves the experimental testing of various models of co-founding.

Conclusions

The modern system of higher education should be flexible, its main criterion is to ensure efficiency and competitiveness, which entails the emergence of outsourcing in the modern conditions of higher education. The elements of the educational process that can be implemented in an organization or educational institution in the outsourcing model are the following: analysis and assessment of the need for education; development of a personnel training strategy in the organization; management of the training project in the organization; evaluation of the effectiveness of training in the organization; consulting on personnel productivity management in the organization; consulting on organizational development and change management in the organization. The main advantages of outsourcing in education management are the provision of the necessary information to the management for making informed decisions not only for the future, but also for specific labor market situations in the field of education; timely detection of deviations from defined norms and standards; development of specific recommendations not only for updating of educational services, their optimization but also for conceptual solutions in restructuring the institution using various forms of integration.

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14. Література:

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