The recent bankruptcy of online education company 2U has sent shockwaves through the education sector, adding fuel to the uncertainties surrounding Online Program Management (OPM) companies. 2U had been a major player in the OPM industry, providing technology and support services to universities for their online programs. However, the company’s financial troubles, culminating in a Chapter 11 bankruptcy filing, have raised questions about the future of the OPM model.
OPM companies like 2U play a crucial role in the rapidly expanding online education industry. By providing universities with the tools and expertise needed to launch and maintain online programs, OPMs help institutions reach a wider pool of students and stay competitive in a fast-evolving educational landscape. However, the business model of OPMs, which typically involves revenue-sharing agreements with universities, has come under scrutiny in recent years.
The bankruptcy of 2U has highlighted some of the risks associated with the OPM model. As universities increasingly rely on OPMs to manage their online programs, they become vulnerable to the financial health of these third-party providers. If an OPM company like 2U runs into financial difficulties, it can jeopardize the stability of the university programs it supports.
The uncertainty surrounding the OPM industry has been further exacerbated by the ongoing COVID-19 pandemic, which has forced universities to rapidly transition to online learning and rethink their long-term strategies. While demand for online education is on the rise, universities are facing budget constraints and increased pressure to deliver high-quality, cost-effective programs. This has led some institutions to reconsider their relationships with OPMs and explore alternative approaches to online education.
In light of these challenges, universities are increasingly looking for ways to bring online program management in-house or collaborate with other service providers. This shift towards insourcing or diversifying OPM partnerships reflects a growing recognition of the need for greater control and flexibility in the online education space.
The bankruptcy of 2U serves as a cautionary tale for universities and OPM companies alike. As the online education market continues to evolve, both parties will need to adapt to changing circumstances and find sustainable models for delivering quality online programs. In the meantime, the uncertainties surrounding the OPM industry are likely to persist, prompting universities to reevaluate their partnerships and explore new avenues for online program management.
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