Online program manager: Difference between revisions

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{{Short description|Provider of products and services for online courses at educational institutions}}

{{Multiple issues|

{{Lead rewrite|date=April 2024}}

{{Tone|date=January 2024}}

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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.<ref>{{cite web | title="The Anatomy of an OPM and a $7.7B Market in 2025" | url=https://www.holoniq.com/notes/the-anatomy-of-an-opm-and-a-7-7b-market-in-2025|date=13 February 2019|access-date=9 April 2024}}</ref> 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.<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref>

OPMsOnline areenrollments oftenin fundedhigher byeducation privatehave equitygrown orsubstantially, ventureespecially capitalafter asthe aglobal [[For-profitshutdown. higherConvenience educationand inflexibility is not the Unitedonly explanation States|for-profit enterprises]]this rapid growth. AUniversities, revenue-sharingfacing contractbudget shortfalls, have turned to '''Online Program Managers''', commonly known as OPMs to recruit students and build online programs.<ref>{{cite web | last1title=Hall"The |first1=Stephanie|Anatomy title=Yourof an OPM Isn'tand a Tech Platform$7.7B It'sMarket ain Marketing2025" Firm| url=https://tcfwww.orgholoniq.com/contentnotes/commentary/yourthe-anatomy-of-an-opm-isntand-a-tech7-platform7b-itsmarket-ain-predatory-marketing-firm/ |website=tcf.org 2025|date=2013 January 2023February 2019|access-date=9 April 2024 }}</ref> hasOPMs allowedprovide universitiesbundled toproducts enterand intoservices theto online education businessprivate and gainpublic marketeducational shareinstitutions withoutin theexchange needfor toa buildrevenue their ownsharing platformarrangement.<ref>{{cite webUniversities |last1=Pelletierhave |first1=Stephencome |title=Theto Evolutionrely ofon Onlinethese Programservices Managementto |url=https://unbound.upcea.edu/leadership-strategy/continuing-education/the-evolution-of-online-program-management/recruit |website=unbound.upcea.edunew |access-date=19students, Decemberdesign, 2020}}</ref>develop, Suchrun predatoryonline partnershipsprograms incentivise aggressive student recruitment (and revenue collection)more.<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref> while [[outsourcing|outsourcers]] core [[edtech]] capability in an institution.<ref name="hechingerreport">{{cite web |last1=Marcus |first1=Jon |title=More colleges and universities outsource services to for-profit companies |url=https://hechingerreport.org/more-colleges-and-universities-outsource-services-to-for-profit-companies/ |website=hechingerreport.org |date=8 January 2021 |publisher=Hechinger Report |access-date=15 July 2021}}</ref> Until recently, they have also been less subject to government scrutiny.<ref name="Inside Higher Education">{{cite web |last1=Knott |first1=Katherine |title=Oversight Coming for Online Program Providers |url=https://www.insidehighered.com/news/2023/02/16/education-department-review-rules-online-program-providers |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=21 February 2023}}</ref>

OPMs are often funded by private equity or venture capital as a [[For-profit higher education in the United States|for-profit enterprises]]. A revenue-sharing contract<ref>{{cite web | last1=Hall |first1=Stephanie| title=Your OPM Isn't a Tech Platform. It's a Marketing Firm| url=https://tcf.org/content/commentary/your-opm-isnt-a-tech-platform-its-a-predatory-marketing-firm/ |website=tcf.org |date=20 January 2023 |access-date=9 April 2024 }}</ref> has allowed universities to enter into the online education business and gain market share without the need to build their own platform.<ref>{{cite web |last1=Pelletier |first1=Stephen |title=The Evolution of Online Program Management |url=https://unbound.upcea.edu/leadership-strategy/continuing-education/the-evolution-of-online-program-management/ |website=unbound.upcea.edu |access-date=19 December 2020}}</ref> Such predatory partnerships incentivise aggressive student recruitment (and revenue collection)<ref>{{cite journal | last1=Hamilton | first1=Laura | title=The For-Profit Side of Public U: University Contracts with Online Program Managers |journal= Socius: Sociological Research for a Dynamic World| url=https://doi.org/10.1177/23780231231214952https://doi.org/10.1177/23780231231214952 |date=2024| volume=10 | doi=10.1177/23780231231214952 |access-date=9 April 2024| doi-access=free }}</ref> while [[outsourcing|outsourcers]] core [[edtech]] capability in an institution.<ref name="hechingerreport">{{cite web |last1=Marcus |first1=Jon |title=More colleges and universities outsource services to for-profit companies |url=https://hechingerreport.org/more-colleges-and-universities-outsource-services-to-for-profit-companies/ |website=hechingerreport.org |date=8 January 2021 |publisher=Hechinger Report |access-date=15 July 2021}}</ref><ref name="Inside Higher Education">{{cite web |last1=Knott |first1=Katherine |title=Oversight Coming for Online Program Providers |url=https://www.insidehighered.com/news/2023/02/16/education-department-review-rules-online-program-providers |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=21 February 2023}}</ref>

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."<ref>{{cite web |last1=Coffey |first1=Lauren |title=OPMs on 'Life Support' in Changing Online Marketplace |url=https://www.insidehighered.com/news/tech-innovation/2023/10/11/are-opms-life-support-some-experts-think-so |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=12 October 2023}}</ref>

==History==

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In 2018 and 2020, two former for-profit college companies, Kaplan Higher Education and [[Zovio]], became online program managers. In 2021, two massive open online course (MOOC) developers, [[Coursera]] and [[edX]], became part of the for-profit OPM business.<ref name="hechingerreport2"/>

===Consolidation (2018-present)===

In 2018, Inside Higher Education published "A Tipping Point for OPM?" which stated that most experts thought a "shakeout" would be occurring among Online Program Managers.<ref>{{cite web |last1=McKenzie |first1=Lindsay |title=A Tipping Point for OPM |url=https://www.insidehighered.com/digital-learning/article/2018/06/04/shakeout-coming-online-program-management-companies |website=www.insidehighered.com |publisher=Inside Higher Education |access-date=15 July 2021}}</ref> Kaplan Higher Education became the OPM for [[Purdue University Global]]. Kaplan had previously owned the school.

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Both Phil Hill<ref>{{Cite web|last=Hill|first=Phil|date=2021-12-01|title=OPM Market Landscape and Dynamics: Fall 2021 updates|url=https://philonedtech.com/opm-market-landscape-and-dynamics-fall-2021-updates/|access-date=2022-02-24|website=PhilOnEdTech|language=en-US}}</ref> and HolonIQ<ref>{{Cite web|date=2019-09-09|title=OPM, meet OPX. New models and the $3.5B+ global online higher education services market|url=https://www.holoniq.com/notes/opm-meet-opx-new-models-driving-the-global-online-higher-education-market/|access-date=2022-02-24|website=HolonIQ|language=en-US}}</ref> have also marked the increase in the fee for service market as universities select unbundled services to supplement their internal capabilities. These services are part of the evolution in the OPM space, known as Online Program Enablement (OPE or OPX).

== Differences Between OPMs and ESPs ==

Online Program Managers (OPMs) differ from Education Services Platforms (ESPs) in several key ways:

Revenue Model – OPMs [https://www.insidehighered.com/news/government/politics-elections/2024/07/22/opm-regulations-pushed-2025-if-they-happen-all#:~:text=OPMs%20traditionally%20offer%20a%20revenue,the%20OPM%20and%20the%20institution. traditionally operate on a revenue-sharing model], taking a percentage of tuition revenue. ESPs, on the other hand, often charge a [https://collegiseducation.com/insights/online-program-management-alternatives/ope-a-better-alternative-for-long-term-growth/#:~:text=Fixed%2Dfee%20providers%20have%20become,typically%20use%20to%20drive%20leads. fixed fee for services], allowing institutions to maintain financial control.

Service Scope – OPMs primarily focus on online program management, whereas ESPs provide a wider range of services, including marketing, student support, and administrative functions for both online and on-campus programs.

Institutional Control – ESPs allow universities to retain control over branding, pricing, and student data, whereas many OPMs impose contractual restrictions that can limit institutional autonomy.

Customizability – ESPs offer tailored service packages, while OPMs often require long-term commitments with standardized service agreements.

==See also==

*[[Educational technology]]

*[[Education Services Platform]] (ESP)

*[[EdTech]]

*[[For-profit higher education in the United States]]

*[[Massive open online course]]