London, November 11, 2010 - The UK government could offset its plans to triple tuition fees by giving higher education institutions the tools, resources and guidance to find deeper savings and efficiencies, according to Rosslyn Analytics.
Rosslyn Analytics estimates universities and colleges could save on average more than £9 million* through improved efficiency procurement processes, including: better extraction, distribution and use of information; managing contract and supplier performance; and, enhanced collaborative procurement opportunities.
To put this savings into perspective, £9 million saved by one university through improved procurement efficiencies could easily pay the current £3,290 tuition fee for 2,735 undergraduate students or for 1,000 students if the fee triples to £9,000, proposed by the government.
"The British government must do more to help universities and colleges better manage their spending. In doing so, institutions will be in a stronger financial position to support the teaching of future students without increasing tuition fees," stated Charles Clark, CEO of Rosslyn Analytics.
Recommendations to the Government
Rosslyn Analytics believes the government's should channel more money and effort into the University Modernisation Fund, a £152 million scheme launched earlier this year to support a sustained increase in student places at universities and colleges in a period of economic recovery by adopting greater savings and efficiencies. The government's allocation of the fund:
- Contribute £132 million to support 10,000 extra student places in 2010-11, 8,000 full time and 2,000 part-time.
- Provide £20 million to encourage universities and colleges to adopt efficiencies and savings through shared services and other innovative practices.
At the moment, 57 institutions of the more than 300 UK higher education institutions have signed up to the University Modernisation Fund's "invest to save" measures.
Rosslyn Analytics proposes the government implement a four point plan of action to re-energise its efforts to increase efficiency and reduce costs in universities and colleges:
- For the Secretary of State for Higher Education to convene a cross-industry, private-public forum to discuss and share best practices in implementing innovative technology-enabled savings.
- The Department for Education to make it easier - and more rewarding - for universities and colleges to join the University Modernisation Fund.
- The Department for Education to serve as a role model for universities and colleges by adopting new technologies, i.e., cloud-based services such as spend analytics, to identify and deliver efficiency savings.
- The Department for Education to promote better collaborative procurement among universities and colleges through existing purchasing consortiums. Imperative to success is ensuring the London Universities Purchasing Consortium, the North Eastern Universities Purchasing Consortium and North Western Universities Purchasing Consortium, and others, have access to spend data.
"If universities deploy private sector-style management practices, there is no reason why the cost of educating students shouldn't decrease over time. At the end of the day, students are in control because if they don't see value for money, they will simply find a better performing university," Mr Clark added.
Notes to editor:
*This saving is based on a university with annual indirect spend of £100 million achieving a savings target of nine percent.
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About Rosslyn Analytics
Rosslyn Analytics, the pioneer and leader of cloud computing-based spend analysis, is changing the way organizations obtain, use and share spend intelligence. Its award-winning web-based automated spend analytics platform, RA.Pid®, priced as a service, aligns and empowers ALL employees that can influence spend by delivering accurate visibility of enterprise-wide spend in minutes or days. Organizations can start with a free self-service version of RA.Pid®, which gives users the ability to run base spending reports and identify duplicate payments, for example, within minutes of loading data into the platform. For more information, please visit http://www.rosslynanalytics.com/.