Colleges pool resources to cut costs
THIRD-LEVEL colleges have agreed to pool buying power to save money.
As well as joint purchasing deals on everything from electricity to computers, they are also looking to share services in areas such as payroll, and even human resources.
Education Minister Batt O'Keeffe has asked for a report before the end of the year, setting out progress and key targets in cutting costs and producing efficiencies.
The Irish Independent has learned that:
- The universities are considering collaborating in the areas of insurance, cleaning and facilities management, and stationery.
- The institutes of technology have set up a shared services working group to examine pensions administration, payroll administration and the consolidation of information technology servers.
The universities have already achieved considerable savings through collaboration and through other cost cutting measures. All seven are now expected to operate balanced budgets this year instead of facing accumulated deficits of €50m which had been predicted earlier in the year.
The minister said last night that he wanted colleges to get "better value for money, particularly in areas like procurement and shared services".
He convened two workshops in May and June attended by the universities, institutes of technology and consulting firm Deloitte which is guiding the process free of charge.
"I'm heartened by the progress that has been made over the past few months and I hope that we can build on that," Mr O'Keeffe said, adding that the target is to achieve an 8pc saving by the end of the year.
The Higher Education Authority is chairing a steering group which is working with the universities and institutes of technology in identifying specific timelined actions and targets.
Mr O'Keeffe said value for money in higher education was in line with the Government's broader efficiency drive in the delivery of public services.
- John Walshe Education Editor
Irish Independent
