CEO of Universities South Africa, Bawa Ahmed, says the costs of in-sourcing services at universities may have severe consequences.
The issue of outsourcing was put on the table following the university student protests.
He says universities are facing financial constraints and downsizing to make room for in-sourcing budgets.
Bawa estimates that the institutions across the country will have to spend anywhere between R400 million and R2 billion.
He says that it is possible for the costs of in-sourcing to be reduced over time, only if the implementation becomes more efficient.
It's a huge amount of money and something that we are concerned about.— Bawa Ahmed, CEO of Universities South Africa
He says that policy-makers need to consider how to implement in-sourcing without collapsing the financial systems at institutions of higher learning.
According to Bawa, there is growing recognition that the exploitation and cheap labour involved in out-sourcing services is unacceptable at universities.
Listen to the full conversation from The Midday Report with Stephen Grootes: