Integrating Outsourcing in Financing University Education in Nigeria and Sri Lanka: Case Study of Adamawa State University Mubi, Nigeria and University of Ruhuna, Sri Lanka

Abstract

State-owned universities in Sri Lanka and Nigeria practice outsourcing either consciously or intuitively. Outsourcing has been part of spontaneous means of generating revenue. Therefore, the concept of outsourcing is not new in financing universities in both countries. Subcontracting, consultancy, part time among others was used in describing outsourcing by various institutions in Nigeria and Sri Lanka. Due to were budget deficit in Sri Lankan government limit capital outlay in public sector organizations. In Nigeria, some state governments’ advised state owned universities to strengthen their internally generated revenues (IGR) in order to sustain the continuity of the universities. The objective of this study is to examine how outsourcing can fit into university education financing in these two countries. This study is explanatory and uses secondary data from relevant literatures available. In order to collect the data, the study selected two State Universities i.e, Adamawa State University Mubi, Nigeria and University of Ruhuna, Sri Lanka. The study revealed that outsourcing increases revenue in both universities under study through cost savings in recruitment, employee compensation, overtime, hazard, transport, health and insurance scheme among others. Adamawa state university division of General Studies (GST) and School of Basic and Remedial Studies (SBRS) insource and outsource teaching services whereas university of Ruhuna outsource cafeteria and cleaning services; both universities save cost worth millions of Nigerian Naira (NGN) and Sri Lankan Rupees (LKR) per annum respectively. Hence, the study recommends the integration of outsourcing in financing of university education in both countries.