Running head: ROLE OF AUXILIARY SERVICES AND OUTSOURCING

The Role of Auxiliary Services and Outsourcing in Higher Education

Sarah Schanck
EDLD 8432
Dr. Daniel Calhoun
Georgia Southern University

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

The Role of Auxiliary Services and Outsourcing in Higher Education
Introduction
Through the ups and downs of the economy in recent years, the pressure has been on
higher education to be increasingly accountable to both internal and external stakeholders. One
way that institutions of higher learning have been doing so is to put increased focus on the
mission. It is important to realize that not all functions of the institution can be argued as having
strong ties to the mission and core values of a college or university, although they may be
services that students and administrators deem necessary. Many of these services have become
an auxiliary services functional area of an institution and in some cases have been outsourced
completely. According to the standards created by the Council for the Advancement of
Standards in Higher Education (2011), auxiliary services exist solely to serve constituents of the
university (students, faculty, staff, and other community visitors). This service is wholly owned
by the institution. An outsourced service is when the institution gives up internal control of a
particular functional area to an outside provider (Council for the Advancement of Standards in
Higher Education, 2011). This paper will examine in depth both auxiliary and outsourced
services, including their history in the realm of higher education and how institutions are
utilizing them in this uncertain economy. Relevant literature pertaining to these areas will be
explored and implications for college administrators will be discussed. Understanding the role of
these functional areas in the overall campus ecology is important for any practitioners in the
field, as many departments in an institution could be reviewed for potential managerial changes.
Literature Review
Introduction to Auxiliary and Outsourced Services

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

Auxiliary services. Barr and McClellan (2011) described auxiliary services functional
areas as being service units of the university that are under complete institutional control and
must be substantially financially self-supporting if not completely so. The primary purpose of
auxiliary services is to be a consistent revenue stream for an institution and provide direct
services to campus stakeholders (Sherwood & Pittman, 2009c). These departments are often
responsible for underwriting a proportion of overhead costs for shared services with the
institution (Council for the Advancement of Standards in Higher Education, 2011). Sherwood
and Pittman (2009c) also noted that because campus auxiliaries operate within the institutional
setting they are integral to the larger mission of the campus and must connect services with the
big picture. Many schools rely on these departments as revenue streams to fund other areas of
the university budget (Storey as cited in Milshtein, 2002). According to Jacobs and Pittman
(2005), The academic side of the house develops and implements the academic mission while
the auxiliaries provide support for the academic mission (para. 1). A common thread
throughout the relevant literature is that auxiliary services are responsible for more than just
revenue and sound business practices, but that they must be a true hybrid area and integrate
student learning and academic mission as well. Auxiliary services have been defined as
supplementary to the mission and goals of the campus and an essential function must be to
balance financial needs and outcomes with student engagement (Jacobs & Pittman, 2005).
The main standard for the field of auxiliary services was written by the Council for the
Advancement of Standards in Higher Education (2011). This document created a framework of
guidelines to assist practitioners in balancing an appropriate business model for their departments
while also enhancing student engagement and contributing to learning initiatives and mission of
the institution (Sherwood & Pittman, 2009c). Some highlights of these guidelines included an

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

emphasis on ethical and sound practices, aligning departmental goals with student learning
outcomes, and creating collaborations for the promotion of mutual success across campus
(Council for the Advancement of Standards in Higher Education, 2011). The authors of the
standards also highlighted the need to be intentional, transparent, and inclusive when making
decisions all while maintaining a high level of integrity (2011). Professional development
standards are established encouraging practitioners to possess an appropriate combination of
educational credentials and related work experience (Council for the Advancement of Standards
in Higher Education, 2011, part 4, para. 7). Auxiliary services functional areas are also charged
with striving to adhere to a very inclusive diversity standard that includes non-discrimination
policies and encouraged advocacy both within the department and the institution (Council for the
Advancement of Standards in Higher Education, 2011).
Outsourcing. There are instances when bringing in an outside service provider for a
student services area would be more fiscally responsible than providing those services in house
through auxiliary departments. In this case, the literature recommends creating an outsourcing
relationship. Outsourcing is obtaining services from an outside provider with particular expertise
in that functional area at a lower cost versus retaining it within the institution (Bartem &
Manning, 2001). Moore (2002) stated that it is the responsibility of administrators to have a
thorough knowledge of student services being currently provided and be able to delineate an
appropriate rationale for maintaining managerial control for a function within the institution or
else outsourcing should be considered. Moore (2002) also emphasized the importance of
evaluating which services are essential to the mission and must therefore be kept under
institutional control. Moore (2002) cited Scherrens in the assertion that:
The biggest challenge for most institutions is to share rather than control their decision-

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

making responsibility, while not losing sight of ultimate institutional accountability, that
partners with a passion for perfection understand the need for sharing a common
knowledge base, and that information not shared between partners is useless data. (p.48)
The auxiliary services department is often responsible for the management of outsourcing
relationships on a campus because of their expertise in creating a blended and balanced model of
fiscal responsibility and student learning (Council for the Advancement of Standards in Higher
Education, 2011).
Any function of the university can be a candidate for outsourcing and evaluating whether
an area can be outsourced must be a data-driven consideration (Bartem & Manning, 2001).
Bartem and Manning (2001) argued that external providers often have more flexibility in
financial and budgeting practices than academic institutions have, so creating partnerships can
often allow more streamlining and efficiency. It is also stressed throughout the literature that
open communication and collaboration with external service providers is crucial to having
successfully outsourced functional areas (Bartem & Manning, 2001, Sanseviro, 2010, and
Milshtein, 2010). Bartem and Manning (2001) stated it succinctly by warning, Outsourcing
partnerships fail primarily because of inadequate communication (p. 47).
History of Auxiliary and Outsourced Services
Auxiliary services. Sherwood and Pittman (2009a, 2009b, 2009c) published a series of
articles in the College Services journal of the National Association of College Auxiliary Services
(NACAS) detailing the history and evolution of the auxiliary area of higher education.
According to Sherwood and Pittman (2009a), auxiliary services functional areas were born as a
result of the doubling of college enrollment after the Second World War. As veterans took
advantage of the G.I. Bill of 1944 to enter into higher education, the demand for dedicated

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

student services increased. In addition, the National Defense Education Act of 1965 and the
Higher Education Act of 1965 increased funding and access to postsecondary education
(Sherwood & Pittman, 2009a). At the same time, the view of students was changing in the
academy to include them as consumer partners in the institution (Sherwood & Pittman, 2009b).
New student services areas such as dining services, bookstores, and housing needed to be
developed and refined to meet the increased growth of students and their demands.
As student service functions expanded, it was common to see these areas housed within
one of two divisions: business services or student affairs (Sherwood & Pittman, 2009a). During
this same era, student development theory was expanding and the idea that auxiliary services
should contribute to the learning environment was prominent. At the same time, auxiliary
services needed to be efficient and subscribe to a business model of being cost-effective and
creating profit. However, Sherwood and Pittman (2009b) noted that, Student affairs staff
became accountable for all policies and procedures that related to student development, behavior,
recruitment and retention. Business affairs staff concentrated on facilities, budgets and
management issues. More often than not, these responsibilities overlapped and created conflict
(p. 26). As a result, the separate field of campus auxiliary services was created to be a hybrid
focusing on student development needs while maintaining sound business acumen and practices
(Sherwood & Pittman, 2009a). The National Association of College Auxiliary Services was
founded in 1969 to provide guidance and professional development for this new field (Sherwood
& Pittman, 2009b). In their research, Sherwood and Pittman (2009b) found that one of the
implied rationales for creating a new organization was the ever increasing responsibility of
auxiliary staff to be competent in both quadrants (p. 27).

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

Outsourcing. According to Bartem and Manning (2001), outsourcing has existed in the
business world since the Industrial Revolution but has been slow to be adopted into higher
education business practices until the past several decades. Since then, according to Gose (as
cited in Quigley & Pereira, 2011), the decision most institutions face today is not if they should
outsource, but how they should outsource (p. 38). In reality, any functional areas that are under
university management are a possibility for outsourcing but some common areas are: technology
services such as web design and technical support, student services such as dining, housing, and
bookstores, and facilities management (Quigley & Pereira, 2011). Outsourcing as a higher
education business practice has evolved in a parallel fashion to the field of auxiliary services and
it is common practice for this department to manage these private partnerships.
Implications
Considerations in Choosing Auxiliary or Outsourcing
Milshtein (2010) posed the question of why an institution would want to outsource a unit
when an institution could receive all of the profits of that unit (such as the bookstore) and
maintain all of the managerial control. The opposing argument is that with all of the control
comes all of the responsibilities and corresponding stress (Milshtein, 2010). For every school,
the choice to outsource a functional area or bring it under the umbrella of auxiliary services is
going to be unique to the circumstances of that institution. Administrators with budget and
decision-making responsibilities must determine the best option for their campus and its unique
situation. Eldered (as cited in Milshtein, 2010) stated, The choice cant be emotional. Instead it
must be a data-driven decision that provides the best service in the most fiscally responsible
manner (para. 2). Many campuses have a blended approach combining both outsourcing and
auxiliary services; it is the responsibility of the administrators to make a careful decision about

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

how that blend is formulated in the most financially sound way for their institution. Stakeholders
(both internal and external) are expecting financial decisions of the institution to be transparent,
so administrators must make sure that the decision to outsource or maintain an auxiliary unit is
sound and data-driven.
Auxiliary services as an integral campus unit. According to Sherwood and Pittman
(2009c), keeping direct student services as auxiliary functional areas allows for unique
collaboration opportunities for campuses. It is important for auxiliary services to place an
emphasis on students and student learning in their operations (Sherwood & Pittman, 2009c).
Maintaining institutional control of direct service functional areas (if deemed the most efficient
option) allows administrators to leverage these units in both internal and external campus
relationships. In addition, several sources highlight the role of auxiliary services professionals as
internal consultants, lending their unique blended expertise of business management and student
learning to the entire campus (Council for the Advancement of Standards in Higher Education,
2011, and Sherwood & Pittman, 2009c). If auxiliary services are properly connected to the
mission and success of the institution, they can be of great benefit to both the bottom line and
campus identity. Summarizing the role of auxiliary services within an institution, Sherwood and
Pittman (2009c) stated, Our operations really do have a positive impact on student recruitment
student employment, leadership training, multicultural education, student retention, and play a
significant role in providing enhanced campus community (p.30).
Benefits and risks of outsourcing. Outsourcing can be an attractive option for
campuses because of the myriad of benefits. These benefits may be prioritized differently for
individual campuses and what may hold the highest priority for one institution may not matter at
all for another. Administrators must know what their institutions priorities are to be able to

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

analyze the potential benefits of outsourcing effectively. Moore (2002) described how
outsourcing can attract new talent to a university because of the larger business scope of
providers and their ability to attract talented managers. According to Quigley and Pereira
(2011), outsourcing can also provide an increase in organizational efficiency, reduced costs
because the vendors are often able to negotiate better rates because of their size, and access to
new ideas and expertise. It is the burden of todays administrators to evaluate whether those
benefits balance with the loss of institutional control for outsourced functional areas.
In the same way that an administrator must measure the benefits, they must also assess
the risks. Concerns may include diminished autonomy, decreased benefits and salary for
employees in outsourced areas, and a risk of poorer quality and inconsistency of service (Quigley
& Pereira, 2011). In many institutions, the auxiliary services department oversees outsourced
relationships, and since information and feedback is not as readily available as in an internally
controlled unit, outsourced units must be monitored often and have clear feedback channels
(Quigley & Pereira, 2011). Once administrators and budget managers weigh the risks and
benefits, ultimately, Quigley and Pereira stated, If institutions cannot deliver services of the
same quality at cheaper rates than external providers can, they should consider outsourcing (p.
39).
Conclusion
Auxiliary services have been evident on college campuses since the introduction of the
G.I. Bill and the Higher Education Act opened more doors for access to higher education.
Although the field continues to evolve, the necessity of financially self-supporting units that
provide direct services to students, faculty, staff, and community has not diminished nor will it in
the foreseeable future. Outsourcing as an alternative means of providing direct services will

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

continue to be relevant as an optional business model. While both auxiliary and outsourcing
have their benefits and risks, the burden is on institutional administrators and budget managers to
determine what blend of control will best benefit the institution. Having a strong knowledge of
the history of auxiliary services and outsourcing both within the industry and on their individual
campus will allow administrators to make informed decisions. The struggling economy has
increased the need for transparent accountability to stakeholders, so outsourcing decisions must
be done ethically and with an emphasis on data-driven decision making. As institutions develop
the hybrid model that functions most effectively for their campuses, Sherwood and Pittman
(2009c) stated their prediction of the future of the field, We are confident that auxiliary services
will continue to provide a high level of quality service, increasing student engagement, continued
fiscal support, and dynamic campus vibrancy to institutions of higher learning in the decades that
lie ahead (p. 30).

10

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

References
Barr, M.J. & McClellan, G.S. (2011). Budgets and financial management in higher education.
San Francisco, CA: Jossey-Bass.
Bartem, R., & Manning, S. (2001, January/February). Outsourcing in higher education: A
business office and business partner discuss a controversial management strategy.
Change, 33(1), 42-47.
Council for the Advancement of Standards in Higher Education. (2011). The role of auxiliary
services functional areas: CAS standards contextual statement. Washington, DC: Author.
Jacobs, B.A., & Pittman, J.S. (2005, August 1). Auxiliary services: Their effect on the bottom
line. College Planning & Management. Retrieved from http://www.webcpm.com.
Milshtein, A. (2002, June 1). Auxiliary services: Wheres the bottom line?. College Planning &
Management. Retrieved from http://www.webcpm.com.
Milshtein, A. (2010, November 1). Are you in or out?. College Planning & Management.
Retrieved from http://www.webcpm.com.
Moore, J.E. (2002). Do corporate outsourcing partnerships add value to student life?. New
Directions For Student Services, No. 100, 39-50.
Quigley, B.Z., & Pereira, L.R. (2011). Outsourcing in higher education: A survey of institutions
in the District of Columbia, Maryland, and Virginia. SAM Advanced Management
Journal, 76(2), 38-46.
Sanseviro, M.L. (2010). Public-private partnerships for on-campus housing. The Journal of
College and University Student Housing, 37(1), 60-70.
Sherwood, G., & Pittman J. (2009a). The evolution of auxiliary services. College Services, 9(1),
17-18.

11

ROLE OF AUXILIARY SERVICES AND OUTSOURCING

Sherwood, G., & Pittman J. (2009b). Auxiliary services: An industry grows and matures. College
Services, 9(2), 26-27.
Sherwood, G., & Pittman J. (2009c). Auxiliary services: Translating change into opportunity.
College Services, 9(3), 28-30.

12