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Online enrollments in higher education have grown substantially, especially after the global shutdown. Convenience and flexibility is not the only explanation for this rapid growth. Universities, facing budget shortfalls, have turned to Online Program Managers, commonly known as OPMs to recruit students and build online programs.[1] OPMs provide bundled products and services to private and public educational institutions in exchange for a revenue sharing arrangement. Universities have come to rely on these services to recruit new students, design, develop, run online programs and more.[2]
OPMs are often funded by private equity or venture capital as a for-profit enterprises. A revenue-sharing contract[3] has allowed universities to enter into the online education business and gain market share without the need to build their own platform.[4] Such predatory partnerships incentivise aggressive student recruitment (and revenue collection)[5] while outsourcers core edtech capability in an institution.[6] Until recently, they have also been less subject to government scrutiny.[7]
In the face of scrutiny from educational institutions and regulators and competition in the sector, edtech market analyst Phil Hill said in 2023 that the OPM business model was now "on life support."[8]