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A sector call to software suppliers for collaboration: an 18-month update

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by
Nicola Arnold

In 2024, we joined other higher education and research sector bodies in a call for support from software suppliers in the face of mounting financial pressures on the sector. Nicola Arnold, Jisc CFO, reports on progress.

A male and female software developer working in front of a screen.

The open statement highlighted the impact of economic challenges on staffing, student experience and service delivery, and the very real threat to long-term sustainability.

At the time, signatories including Jisc, BUFDG, SCONUL, Research Libraries UK and UCISA, pointed to structural and service reviews, redundancies, restructures and course closures as direct consequences of these pressures. Since then, the cost challenges facing the UK higher and further education sectors show no signs of easing. In fact, they are intensifying.

Working with software suppliers to address rising costs in education

Software licensing and subscriptions remain an essential but significant area of expenditure for universities and colleges. Our message to suppliers in October 2024 was clear: there is an opportunity to demonstrate value as genuine sector partners by working with the sector and taking a constructive approach to pricing structures.

I have seen first-hand how institutions are working to maintain stability while confronting rising costs. The effects of the UK’s economic conditions are compounded by global instability, reduced funding, and declining numbers of overseas student applications. Costs are increasing, and also becoming harder to predict. As expected, this has led to further cuts.

We see software providers as providing a key role in helping to secure long-term financial sustainability for the sector.

Progress on sector-wide collaboration with suppliers

At the time of the statement, we noted that several suppliers had already begun reviewing their pricing and business models, and I am pleased to see further progress. Feedback from Jisc member institutions suggests the call to action has been a useful tool in supplier negotiations, reinforcing that financial pressures are sector-wide rather than isolated to individual organisations.

A strong example of a successful collaboration can be seen in our network solutions framework. By bringing together suppliers of connectivity, networking and infrastructure services within a sector-focused agreement, vendors can align more closely with shared institutional needs and deliver greater collective value. This approach is contributing to measurable impact, with £7.5m in savings delivered through our member-facing frameworks in 2024/25, up from £6.5m the previous year.

Jisc's role in driving collaboration and cost efficiency

We continue to advocate for the sector, while negotiating with software providers to secure the best possible terms, and that a procurement complaint route to these providers is available. We work to deliver sector-wide agreements that generate savings, reduce duplication and provide greater pricing stability. Just as importantly, we represent the experience of institutions in those negotiations, bringing evidence from members, highlighting where models work, and challenging where they do not.

More work to be done

While there has been progress, it remains uneven and there is a lot more to do. Suppliers, particularly those with a significant institutional presence, should consider the long-term value of working in partnership with universities and colleges. These institutions play a vital role in driving economic growth, creating opportunity, developing talent, and advancing research and innovation.

We reiterate our original statement’s call for providers to:

  • work with sector bodies to better understand and anticipate institutional needs
  • provide cost-effective and flexible terms, including for storage and one-off purchases
  • ensure overall value, taking into account total cost of ownership, including staffing and support
  • strengthen their global reputation by partnering with institutions involved in international collaboration and local economic development

Through closer collaboration, we want to ensure that supplier offerings align with the financial realities faced by the sector and support a sustainable future for teaching, learning and research.

Next steps

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About the author

Headshot of Nicola Arnold
Nicola Arnold
Chief financial officer

I have responsibility for the finance and procurement teams who work across all areas of Jisc.