The Changing Face of Indian Universities
What exactly defines a university? Traditionally, we think of it as a place of learning with its own curriculum and dedicated professors. Remove these two elements - the in-house syllabus and the in-house faculty - and does the institution still qualify as a university? Across India, many higher education institutions are testing this boundary by outsourcing significant portions of their educational functions.
The Quiet Classroom Takeover
Exact numbers remain elusive because neither the government's education ministry nor regulatory bodies like UGC and AICTE maintain comprehensive databases on this trend. Universities themselves show reluctance to share information, with most officials speaking only off-record when approached. Yet the pattern emerges clearly: in numerous cases, the classroom experience has been outsourced, turning universities into interfaces rather than direct providers of education.
University authorities cite three primary drivers behind this shift. First, the government's New Education Policy (NEP) encourages courses tailored to emerging knowledge areas with strong job market relevance. Second, India has witnessed rapid expansion in higher education institutions - universities nearly doubled from 760 to 1,338 in the last decade alone. Third, technological transformation continues at breakneck speed, creating constant pressure to adapt.
Pressure Points and Practical Solutions
The NEP's emphasis on job-ready graduates forced universities to offer cutting-edge subjects like data science, artificial intelligence, fintech, and blockchain. However, institutions faced a critical shortage of qualified faculty in these rapidly evolving fields. Even when they attempted new recruitment, the knowledge in these areas advanced so quickly that newly hired teachers struggled to keep pace.
"Outsourcing classrooms became the only viable option," explained one higher education manager who requested anonymity. This raises fundamental questions about whether universities are becoming more responsive or simply more hollowed out. The center of gravity appears to be shifting from universities as creators and teachers of knowledge to institutions that assemble, brand, and certify educational products.
From Periphery to Core Functions
The outsourcing trend began innocently enough with peripheral services. Universities first contracted out buses, canteens, hostels, housekeeping, hospitality, and maintenance. These decisions were framed as practical moves toward efficiency and modernization, allowing institutions to focus on their core academic mission.
But the perimeter kept moving inward. Marketing, student recruitment, admissions counseling, and even tuition financing through EMI options followed. Universities grew comfortable with outsourcing, making the eventual contracting of core teaching functions less radical. As former AICTE chairman SS Mantha observes, many institutions have essentially become "credentialing machines" or "degree-giving institutes."
The Business Model Behind Classroom Outsourcing
At its most basic level, the arrangement operates on a revenue-sharing model. Students pay different tuition fees for specialized courses they select. These fees typically split 60:40 between the external education provider and the university. While specific deal sizes remain confidential, people familiar with the process confirm it represents an eminently viable business model attracting numerous private companies.
Consider Mumbai's educational landscape. A growing number of colleges in the city now outsource entire courses to private coaching academies. This shift proves particularly visible in commerce and management streams, where institutions feel pressure to offer professional qualifications alongside conventional degrees.
"Many of our students no longer want to study a plain BCom," revealed a senior faculty member at one such college. "They want to pursue CA or CFA while simultaneously enrolling for a BMS from an online private university in Madhya Pradesh or Rajasthan."
To meet this demand, colleges enter revenue-sharing arrangements where external partners run professional courses, provide their own faculty and curriculum, and keep 60% of revenue while the college retains 40%. Some institutions reportedly list edtech partner faculty on their official rolls, though this remains difficult to verify independently.
The New Faces in Education
Private companies now deliver specialized knowledge directly to university students. A Andre, CEO of DataTech Labs, runs approximately twenty specialized programs in areas including data science, fraud analytics, smart manufacturing, and diagnostic AI. His company works with twenty-five institutions, including ten outside India.
"These skills are now needed across domains," Andre explained. "From arts to commerce to science and technology, from law to music - colleges and universities are being asked to offer them because placement heads actively seek these capabilities."
Face Prep, which previously focused on campus placement training for sixteen years, began taking over and running entire degree programs in 2023. Their offerings include BCA or BSc in AI, data science and machine learning, BCom in fintech with AI, and BBA in ecommerce with digital marketing.
Another company providing similar services for healthcare courses in Karnataka described their role as "training partners that produce industry-aligned modules while providing placement support and internships." However, they emphasized that "exams, assessment, and degree awards remain the college's responsibility."
Traditional Knowledge Meets Modern Delivery
Even traditional subjects find new delivery methods through partnerships. Pune's Brihan Maharashtra College of Commerce (BMCC) tied up with the Bhandarkar Oriental Research Institute (BORI) to offer an online, two-credit course titled 'Introduction to the Vedas.'
"BORI represents a renowned institute for studying ancient India," said Principal Deepak Powdel. "When we have such wealth of knowledge next door, why look elsewhere? They offer online Vedic courses while all our other subjects continue with our own faculty."
The College of Engineering Pune Technological University partners with industry players and specialized institutes to offer multidisciplinary minor courses beyond core engineering. "We've partnered with FinIQ Consulting India for quantitative finance, Vizura AI Labs for artificial intelligence, and Jnana Prabodhini's Institute of Psychology for psychology minors," explained Associate Dean Sandeep A Meshram. "Faculty from the Gokhale Institute of Politics and Economics also teach economics courses."
Looking Toward the Future
Most educators believe the classroom outsourcing trend will continue expanding. Finding quality faculty remains challenging enough in traditional subjects but approaches near-impossible in emerging fields where required knowledge expands annually.
Yet universities will likely retain essential roles as degree-granting authorities and quality gatekeepers for outsourced teaching. Students still prefer attending universities rather than edtech firms directly. Institutions will probably become more flexible and responsive to how technology and economic conditions shape student choices.
The fundamental question remains: Can a more networked university preserve the traditional emphasis on sustained inquiry, complex problem-solving, and meaningful mentorship between teachers and students? The coming years will provide answers as India's higher education landscape continues evolving under multiple pressures.
