News
February 4
With campus services becoming more and more extensive in colleges across the country, the costs are rising as well. And with many colleges tightening their belts in a time of economic downturn, outsourcing certain student services to outside contractors is an alternative being looked at.
However, Tufts is not going down that road yet, and administrators feel that the University must decide what serves the students' needs best, whatever that route may be.
The University currently outsources a number of services on campus, including the bookstore, laundry and vending services, telephone, cable TV, and cleaning.
One very important aspect to every college student's world that has remained under Tufts' control has been dining services, something that nearly 60 percent of colleges had outsourced, according to a recent survey by the Center for the Study of Outsourcing and Privatization in Higher Education (CSOPHE).
However, another vital part of the Tufts campus, the bookstore, is outsourced to Barnes and Noble, as are 40 percent of other colleges.
Food service companies have approached the University with their services, but none of the offers were good enough, according to Dining Services and Business Director Patti Lee Klos. "Could things be done cheaper? Possibly," Klos said. She said that bigger companies have the ability to provide many advantages because of their size and focus.
But Klos warns against outsourcing as a cure-all to any issues that students find with Tufts dining. "You have to be very clear about the level and quality of service you want available from the contractor," Klos said. "If you want to pay less, where will it come from? What will you be giving up?"
Not a whole lot, according to the University of Pennsylvania. Penn has been outsourcing the management responsibilities of their dining services for years, but this summer they gave up all control. The results have all been positive, according to them.
"The economics and the services were best served through an outsource contract," said Laurie Cousart, Penn Telecommunications Director. "So far, I've been very impressed." Cousart said that the company, Aramark, will be expanding its services over this year to provide more "flexibility" for students' dining options "in terms of the number and types of locations we offer."
The feeling among students, though, is that there is not much to be gained from outsourcing dining services. Tufts is usually ranked highly by college guides like the Princeton Review when it comes to food, and students are not in any hurry to change.
Junior Ryan Steeb is one of those students. "People would be excited about having a new dining service if it was outsourced," Steeb said, but the junior also feels that the services would be pretty much be the same. He said that the current dining services provide most of what he needs when it comes to on-campus food.
One of the main complaints about the dining services options on campus, though, is the high prices, not the quality. From eight dollar sushi to three dollar juices, and with half the student population being forced into freshman or sophomore meal plans, many students feel that Tufts is taking advantage of its on-campus market dominance.
An outside company would probably not be much cheaper to students, though. Penn has found that the costs to students have remained very similar and Penn retained a mandatory freshman meal plan.
Cousart did say, however, that services are much improved since Aramark came in. And Klos said that of the offers she has heard from outside companies, the prices that students would be faced with would be very similar.
There are no profits in Tufts' Dining Services, only a small amount of extra revenue to help pay for large capital expenditures as they come up from year to year.
The Medford campus bookstore is an example of a service that Tufts has had outsourced for years, but it too faces criticisms from students over prices. But Klos said that there would have to be a strong reason to take the step to bring it back under the school's control. Barnes and Noble currently pays Tufts a "guaranteed payment" in the hundreds of thousands of dollars, as well as a percentage of sales.
This money goes towards financing the debt created by constructing the bookstore's building. The school looked at taking over the bookstore five to ten years ago, but the enormous start-up costs and capital expenditures necessary persuaded them against that route. "We could do it, but it would have to be important to us," Klos said.
This could also work in the case of the dining services, where if the quality slipped too much, the school would have to look into outside companies. In fact, many schools turn to outsourcing because of quality issues.
That was the primary concern of Penn when it chose to outsource all of its dining services. Cousart acknowledges that food services may not have been one of Penn's assets so letting an outside company come in allows the University to focus on academics.
But what about other services at Tufts, like phone and internet? Tufts Computing and Communications Services (TCCS) chose in 1995 to outsource cable, phone and student networking to PaeTec, formerly CampusLink. The service made over $3.5 million in improvements to the campus for networking, making up those costs in its fees for phone and cable.
Nevertheless, last year TCCS took back the student network responsibilities from PaeTec, citing a difference in the school's priorities with recent changes in technology.
"Students decided they needed much more out of the network," Associate Director of Data Network Operations Doug Herrick said, citing the growth in peer-to-peer file transfers with programs like Napster and Kazaa. "We felt that the student network was falling so far behind...we had to do something."
The University has many different parts that could be outsourced, or already are. According to CSOPHE, only five percent of colleges have full control of all aspects of their institutions, almost half outsource five or more services.
Every university has to make its own choice, based on its own individual needs of what should be done, says Klos. "[Dining services are] only as good as the people responsible for it," she said.