Further briefing statement following the HEFCE Board Meeting on 25 February 2004
27 February 2004
HEFCE to discuss restructuring of e-Universities venture
Background statement
UK eUniversities Worldwide (UKeU) was conceived in 2000 as a vehicle for delivering high quality higher education courses to students across the world over the Internet. Its first students started their courses in 2003.
However, the UKeU has faced a number of significant challenges caused by changes in external circumstances.
Firstly, changes in the global financial market have made it very difficult to raise private finance for the venture as envisaged in the business plan. One of the conditions of grant was that the business should obtain matched public and private funding.
Secondly, the global market for virtual e-learning has been slower to develop than expected. Despite the resourcefulness and endeavours of all those engaged in the project, student recruitment onto e-Universities courses has been lower than anticipated.
There were inherent risks in the venture, but it was felt that there were greater risks in not grasping this opportunity to expand the UK's share of the overseas higher education market. Failure to act would have risked the UK losing out to virtual and corporate universities being developed in the United States and elsewhere. Furthermore, the UK was in a particularly strong position to act because it already had one of the world's best academic IT networks.
Thirdly, there has been a much larger growth in overseas students coming to Britain, particularly from China and South East Asia, than was anticipated in 2000. During the period of the project's development, the numbers of international students studying in the UK has grown by more than 50 per cent - from 106,000 in 2000-01 to 162,000 in 2003-04. Despite these difficulties, the UKeU has been successful in developing a number of collaborative projects overseas, particularly in China.
Fourthly, recent consultation carried out by HEFCE with universities and colleges on developing an e-learning strategy reveals that they favour 'blended' approaches to e-learning - involving a mixture of IT, traditional, work-based and distance learning to meet the diverse needs of students - rather than concentrating on wholly e-based learning. HEFCE will take this emphasis on blended learning forward as it develops the e-learning strategy in association with its partners, including the newly established Higher Education Academy and the Joint Information Systems Committee (JISC).
The future of e-learning
E-learning has a vital and exciting role to play in higher education because it empowers learners, enables teaching to be more creative and innovative, and enables students to develop skills of value in the workplace. Much has been learnt through the e-Universities project - both by the company, and by the participating universities and colleges and students. It is essential to capitalise on this experience as higher education institutions further develop their e-learning programmes. The project has also provided many important lessons about the potential use of new technologies in higher education.
In moving forward, it is important to look after the interests of the students studying on existing e-Universities courses and, where appropriate, the interests of other stakeholders. It is also essential that successful collaborative programmes in the UK and overseas, such as the e-China project, continue to develop.
Given these developments, the HEFCE Board has decided it needs to discuss with both eLearning Holding Company Limited, the holding company, and UKeU, the operating company, how their activities can be restructured to support universities and colleges as they develop e-learning programmes. It is intended that the restructured operation will be funded using the balance of the £62 million originally allocated to the programme, and will place greater emphasis on public good rather than commercial objectives.
The restructuring plan will be considered by the HEFCE Board at its meeting on 22 April.