U. considers outsourcing 'everything'

Goal is for all systemsGoal is for all systemsto run smothly According to University Executive Vice President John Fry, "everything will be considered" for out-sourcing possibilities at the University. Out-sourcing is the practice of contracting private companies to render their specialty services to the University community. Though this is only his first year in office, Fry is scrutinizing the inner-workings of the University. He said a fairly elaborate process is being used to determine what sections of the University could be handled more effectively by outside sources. Fry mentioned dining services and residential living as two possibilities. "The process is not reflective, we are gathering a lot of information before any decisions are made," he said. "I need to look into outsourcing everything because I need to know what all my options are." Several companies have expressed interest in out-sourcing various departments at the University. Aramark, a Philadelphia based company, currently serves 350 colleges and universities. The University of Pennsylvania seems to be their next goal. "I have visited Penn at least once a month for the last five or six years to discuss our involvement in the University's services," said Aramark's Vice President for Marketing Development, Bill Dillon. "We definitely have an ongoing dialogue, especially concerning dining." Aramark has 19 different services they offer to organizations throughout the United States. The company already controls the management aspect for large portions of the University's housekeeping services. "Nothing is definite, but we are definitely interested in further contracts with Penn," Dillon said. Marriott is also already involved in out-sourcing contracts with the University. It offers approximately 500 services to colleges and universities throughout the nation. "We already deal with Penn for concession services," said Marriott's Director of Human Resources Jim Chnect. "In the future our company would like to expand the food services deals and look into facilities management and residential living." Although Fry promises to analyze all the major divisions of the University, he does not believe that all sections could be efficiently out-sourced. Programs such as financial aid could not be handled by a private company because it is highly specialized to Penn. Fry said he is examining the "re-engineering" of departments like financial aid. The Barnes and Noble takeover of The Book Store is an example of further out-sourcing possibilities that lie in the future. Fry said he will continue to search for further ways to save money for the University. Currently, the University spends about $640 million on goods and services per year. "My first year I wanted to focus on The Book Store merger," Fry said. "Now I can move on to other possibilities. I'll know more about what directions we will be headed within the next two months." In the meantime, Fry said he will keep waiting for "the right deal" to save the University money.