The Australian higher education sector is under growing pressure from rising operational costs, skills shortages, and an ever-changing digital and AI landscape. In a recent webinar hosted by NashTech in partnership with CAUDIT, industry experts Steve Johnston (Director of Strategic Procurement at CAUDIT), alongside Steve Arris (Education Accounts Specialist), and Jeroen Brejaart (Technical Advisory Director, APAC) at NashTech came together to explore how organisations can remain resilient and responsive in the face of these complex challenges.
Drawing in attendees from across the higher education and public sectors, the session provided valuable insights into sector-wide cost pressures and the need for sustainable, tech-enabled strategies. Below is a summary of the five key themes explored:
A sector under strain
Budget constraints and a growing scrutiny over value-for-money are forcing universities and education providers to reassess how they source, implement, and manage technology. Whether upgrading legacy systems, adopting cloud-native platforms, or delivering remote learning at scale, technology decisions are now closely tied to institutional sustainability.
Compounding these issues is the volatility of international student revenue, historically a major funding source for Australian universities. Policy fluctuations and visa restrictions have led to billions of dollars in lost revenue, making it harder for institutions to sustain operations and invest in future growth. To respond, universities are trialling different revenue replacement initiatives, such as, cost cutting strategies, new international student markets and industry partnerships. Yet despite these efforts, many universities continue to struggle with transformation and innovation. That brings us to the next challenge.
The skills shortage
Nearly 70% of Australian IT roles are currently in shortage, particularly in areas like AI, data science and cloud computing. This talent gap significantly impedes the pace of digital transformation, can increase costs, and the ability to adapt, innovate and be more efficient begins to decline. Universities are tackling the issue through a mix of strategies: upskilling there existing internal teams, outsourcing IT and cloud services, leveraging AI and automation and collaborating with industry partnerships to support workforce development.
Over reliance on outdated technology
Many universities remain reliant on very outdated technology that wasn’t built for the digital-first world that students expect. This legacy technology is often hindering a university’s ability to deliver seamless digital experiences and can often increase costs, and expose institutions to unnecessary security risks.
The cost conundrum
Cost pressure is one of the biggest challenges facing university IT departments. Often working with lean teams and limited budgets, IT leaders are still expected to deliver complex transformation initiatives.
Strategic partnerships play a key role here. Universities need partners who not only understand the higher education landscape but can also deliver scalable, flexible solutions that balance cost-efficiency with service quality and innovation.
A partnership-driven future
Steve and Jeroen advocated for a move away from transactional outsourcing towards deeper, long-term strategic partnerships based on shared outcomes. This approach is particularly vital in education, where technology must support both pedagogical and operational objectives.
Global delivery models are also gaining traction. By tapping into offshore expertise, Australian universities can address local skills gaps and accelerate delivery without compromising on compliance or timelines. NashTech’s global capabilities, for instance, enable institutions to see real, transformational value, while staying agile.
Key takeaways for higher education tech leaders
For CIOs, CTOs, and digital leaders in universities, the webinar highlighted some critical priorities:
- Prioritise strategic partnerships: Look beyond quick fixes and seek technology partners aligned with your long-term vision.
- Confront cost pressures head-on: Consider flexible delivery models, such as hybrid or offshore support, to mitigate local capacity constraints.
- Leverage shared knowledge: Engage with industry forums, peer networks and shared resources to stay current on evolving technology and best practices.
- Invest in resilience: Digital transformation isn't just about tools; it's creating systems and cultures that can withstand ongoing change.
Ready to future-proof your university?
As cost pressures continue to rise and digital demands intensify, building the right partnerships has never been more vital. NashTech is helping universities across Australia build future-ready IT capabilities securely, sustainably, and strategically.
Get in touch today to explore how we can support your digital transformation journey.
Visit www.nashtechglobal.com or contact our education specialists for a consultation.
