Outsource the Bad, Focus on the Core

Rafael Corrales

The future of education technology is one where schools continually outsource the activities they’re not as good at to focus on their specialty, educating the leaders of tomorrow. At its core, this is simply the law of comparative advantage: the ability of a party (individual or firm) to produce a particular good or service at a lower opportunity cost than another party (per Wikipedia). Basically, if someone does something better than you can, you should allow them to do it for you so you can focus on your specialty. This results in “gains from trade”.
The future of education technology will benefit from such gains. The internet enables schools to gain efficiencies by outsourcing what they can’t do as well to dedicated technologists, allowing more innovative education technology to flow into schools at a lower cost.
We’re already seeing this take place. While developing the LearnBoost Gradebook, we spoke to numerous schools (public and charter) about their technology needs. These were the most common situations we found:
Schools are loyal to their current technology provider despite expensive and inadequate software solutions. Legacy systems and entrenched interests generate steep switching costs and make it difficult to reach a consensus among stakeholders.
Schools are spending too much money outsourcing their data management to a Student Information System (SIS) provider.