If you’d asked me five years ago what the biggest challenges facing Higher Education would be, I’d probably have talked about digital transformation, cloud migration or replacing ageing student systems.
If you ask me today, I’d give you a very different answer.
Over the last year I’ve noticed a real shift in the conversations I’m having with universities. Digital transformation is still important, but it is no longer the only conversation. Financial sustainability, international student recruitment, AI, mergers and shared services now dominate discussions with senior leaders.
What’s interesting is that shared services aren’t new. Universities have collaborated for years through procurement, networks, research partnerships and organisations like Jisc. What feels different this time is why the conversation is happening.
I don’t think universities are exploring shared services because they suddenly want to collaborate more. I think they’re asking a much bigger question: can we continue operating the way we always have?
This paper isn’t intended to tell universities what they should do. Instead, it explores why shared services are back on the agenda, what has changed since previous attempts and what I believe institutions should consider if they’re thinking about collaborating more closely in the future.
I’ve combined industry research with my own observations from working alongside universities on transformation programmes. I hope it provides practical insight for university leaders planning for the years ahead.
- Why This Conversation Feels Different
Shared services have returned to the agenda because the environment universities operate in has fundamentally changed. Financial pressures, unpredictable student recruitment, ageing technology, cyber security, regulation and increasing expectations from students are forcing institutions to rethink how services are delivered.
I don’t believe shared services should start as a cost reduction exercise. Done well, they allow universities to remove unnecessary duplication so they can invest more in the activities that genuinely differentiate them: teaching, research and the student experience.
- Haven’t We Tried This Before?
One of the first objections I hear is, ‘We’ve tried shared services before.’
It’s true. Some initiatives delivered significant value while others struggled. In my view, the programmes that struggled didn’t fail because of technology. They failed because governance, culture, decision making and standardisation proved harder than expected.
The lesson isn’t that shared services don’t work. It’s that they require universities to change how they operate, not simply what systems they use.
- What’s Changed?
The technology landscape has changed dramatically. Cloud platforms, SaaS applications, APIs, AI and modern enterprise systems have removed many of the technical barriers that limited earlier initiatives.
Technology alone won’t make shared services successful, but it does make collaboration far more achievable than it was ten or fifteen years ago.
- Shared Services Are About More Than Saving Money
Reducing cost matters, but I think focusing only on savings misses the bigger opportunity.
Shared services can improve resilience, provide access to scarce skills, strengthen cyber capability, simplify operations and improve service quality. Those benefits are just as important as financial efficiencies.
- Governance Will Make or Break Shared Services
Every successful shared service depends on clear governance. Universities need to agree ownership, funding, decision making, accountability and how much standardisation they are prepared to accept.
In my experience, these conversations are often more difficult than selecting the technology.
- The Part Nobody Talks About: Testing
Whenever shared services are discussed, people talk about governance, operating models, technology and change management.
What rarely gets the attention it deserves is testing.
Shared services multiply complexity. Every integration, business process, data migration and user journey affects multiple institutions. Testing should therefore be designed into programmes from day one, not treated as the final stage before go live.
- Ten Questions Every University Should Ask
1: What problem are we trying to solve?
2: Which services genuinely differentiate our university?
3: What are we prepared to standardise?
4: Who owns governance?
5: Who owns the data?
6: Who owns testing?
7: How will benefits be measured?
8: What happens if another institution joins?
9: Do we have the right capabilities?
10: Are we designing for the future, or protecting the past?
Final Thoughts
After a number of years working with universities, one thing has become increasingly clear.
The biggest barriers to transformation are rarely the technology. They’re governance, culture, leadership and the willingness to change.
I don’t believe every university will adopt a shared services model, and I don’t believe every institution should. But I do believe every university will need to decide where collaboration makes more sense than independence.
That conversation has already started.
The question isn’t whether shared services will become more common.
It’s whether the sector is ready for them.
NB: This blog was written by Ade Odumosu. You can connect with him on LinkedIn here.