Talent & Education

A funding crunch is pushing higher education institutions online and abroad

March 25, 2014

Global

  • reveals 51% of respondents negatively impacted by reduced government subsidies
  • 61% of respondents believe online and distance courses will have the greatest effect on how higher education is delivered in the next five years
  • 33% of institutions are increasing international recruiting to target a growing global middle class.
 
A new report published by The Economist Intelligence Unit highlights the strategies higher education institutions are employing to remain sustainable and relevant in a rapidly changing environment.
 
, sponsored by Academic Partnerships, reports that 65% of colleges and universities are planning to streamline their budgets and look for new revenue streams. 51% report cuts in government subsidies, forcing these institutions to do more to stay afloat.
 
Online learning is a new frontier. 25% of survey respondents expect online and hybrid courses to attract more students and bring in more revenue, and digital programmes are allowing students to lower their own costs and shorten the time it takes to get a degree. Some universities are trying to expand abroad to reach more students, but Western institutions are competing with increasingly well-funded schools in the developing world, especially Asia.
 
“The higher education landscape is shifting in major ways,and schools are looking for ways to cope,” says Christine Emba, editor of the report. “Cuts in basic spending may be a valuable short term solution, but long-term sustainability will depend on whether schools can adapt to a student and consumer-driven business model.”
 
Higher education in the 21st Century: Meeting real-world demands
is available free of charge at

 

Press enquiries:
Mathew Hanratty, Press Liaison, ;
Christine Emba, Editor, ;

 
Notes to editors
 
About The Economist Intelligence Unit
The Economist Intelligence Unit is the world leader in global business intelligence. It is the business–to–business arm of The Economist Group, which publishes The Economist newspaper. As the world's leading provider of country intelligence, the Economist Intelligence Unit helps executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies. More information about the Economist Intelligence Unit can be found at or follow us on .

About Academic Partnerships
Academic Partnerships (AP) assists universities in converting their traditional degree programs and certificates into an online format, recruits qualified students, and supports enrolled students through graduation. Serving public and private not-for-profit universities in the United States and top international institutions, AP is guided by the principle that the opportunities presented through distance learning make higher education more accessible and achievable for students in the United States and around the world. The company was founded by social entrepreneur Randy Best, an 18-year veteran of developing innovative learning solutions to improve education. For more information, please visit .

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