Higher Education – OPM (Online Program Management) Sourcing
In Higher Education, online initiatives are becoming a required strategy, the space is growing program both in the sheer number of programs and in the range of solutions being required. In the OPM contracting world the original long term ‘lock in’ offerings from companies like Pearson, 2U and Academic Partnerships are now being challenged by newer and more flexible shorter-term integrated service approaches.
Online program partnerships often start out small scale, but as they become successful, OPM relationships can quickly become large and complex. The contracts can generate up to $20m – $40m of revenue share for the supplier over the contract life, some of which can extend past 10 years plus.
Historically, deal making and sourcing assistance in this space have not used advisory firms to help with strategy and/or contracting, but this is now changing. More and more schools are recognizing that this scale of deal and contract deserves to be entered into thoughtfully. This is in part because of growing scrutiny about for-profit revenue share arrangements in the industry and in part from a better understanding of the strategic approach needed in contracting for, getting into, and as importantly getting out of, these deals.
Building on recent experience contracting in this space, Stuart Harris Consulting is moving to offer broad deal Advisory services for OPM. These services range from helping in strategy development, assisting in the RFP/sourcing process, contract development and negotiation all the way through to contract governance and exit strategy development.
SHC recent experience in this space includes: –