Thesis (MPA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: Public institutions require financial resources in order to deliver quality services to the community. The survival of each and every organisation primarily relies on the availability and proper management of financial resources in order to provide effective and efficient service to its clients. Section 195 (1) (b) of the Republic of South Africa Constitution Act, 1996 , Act 108 of 1996 compels public institutions to promote and implement mechanisms that will promote efficient , economic and effective use of resources. South African Public Universities derives larger part of their revenue from the government. The South African government finances South African Universities on the basis of student enrolments. Funding for South African universities and technikons has increased from 10% in the 1996/1997 financialyear to 14% in the 2000/2001 budget. Despite the increase in the financing of the education sector, there were also significant changes in student enrolments at South African universities (Kulati, 2000: 27). Students are leaving from historically black universities for historically white ones and many more are enrolling at technikons than at universities. There are a number of reasons attributed to the decrease in student enrolment in former black universities. Black universities are perceived to be of inferior status as compared to former white universities in terms of their quality and resources. It is expected that government subsidies to historically black universities might fall by 26% over the next three years because of the projected decline in student enrolments. Taking into consideration the enrolment linked subsidy, changed enrolment patterns have drastically affected subsidy allocations by the government to most historically black universities such as Vista University. According to Caruna et al.,(1998: 55), tertiary educational institutions are required, like business firms, to monitor and adapt to the continuous changed taking place in the political, economic, social and the technological environment. The affected institutions are compelled to adapt their service delivery mechanisms if they are to remain financially viable in the near future. It is for this reason that the researcher will explore the use of privatisation as an alternative strategy to service delivery. This study investigate the manner in which activities of the technical services department within Vista University Welkom Campus can be contracted out with an aim of improving cost efficiency within the University. The study developed a normative model which can be used as a guideline in the process of contracting out services and also explain how such model can applied in the process of contracting out activities of the technical services department. The study further identified the responsibilities of different role players who will in one way or another be affected by the contracting process within the University. The study concluded that for the contracting out process to be cost effective, the University have to adopt a seasonally priced contract which reduces activities of the service producer in winter and concentrate activities of the service producer in summer. / AFRIKAANSE OPSOMMING: Openbare instellings benodig finasiele hulpbronne om 'n gehalte diens aan die gemeenskap te lewer. Die voortbestaan van elke organisasie berus primer op die beskikbaarheid en behoorlike bestuur van finansiele hulpbronne om 'n effektiewe en doeltreffende diens aan kliente te lewer. Afdeling 195 (1) (b) van die Grondwet van die Republiek van Suid Afrika, 1996, Wet 108 van 1996, verplig publieke instellings om meganismes te implimenteer en bevorder wat doeltreffende, ekonomiese en effektiewe gebruik van hulpbronne verseker. Suid Afrikaanse openbare universiteite verkry die grootste gedeelte van hulle inkomste vanaf die regering. Hierdie finansiering geskied volgens die aantal geregistreerde studente by die onderskeie universiteite. Bevondsing vir Suid Afrikaanse universiteite en technikons het gestyg van 10% in die 1996/1997 finansiele jaar tot 14% in die 2000/2001 begroting. Ten spyte van die finansiering van die opvoedkundige sektor, was daar beduidende veranderinge in die studente getalle by Suid Afrikaanse universiteite (Financial Mail, 3l.03.2000). Studente verlaat historiese swart universiteite om by histories blanke universiteite in te skryf en meer studente skryf by technikons in as by universiteite. Daar is 'n aantal redes waaraan die afname van registrasies by histories swart universiteite toegeskryf kan word. Voormalige swart universiteite word as minderwaardig betreffende gehalte en hulpbronne beskou, in vergelyking met voormalige blanke universiteite. Die verwagting is dat staat subsidies aan historiese swart universiteite met so veel as 26% oor die volgende drie jaar kan daal, as gevolg van die geprojekteerde daling in studente getalle. Gegewe die feit dat subsidie gekoppel is aan studente registrasies, het die verandering in studente registrasie patrone 'n drastiese invloed op die subsidie toewysing op meeste historiese swart universiteite, waaronder Vista Universiteit resorteer. Volgens Caruna et al.,(1998:55), word daar van tersiere instellings (net soos van besigheidsfirmas), verwag om by die veranderende politieke, eknomiese, sosiale en tegnologiese omgewings aan te pas. Die instellings wat geraak word, gedwing om hul diensleweringsmeganisme aan te pas om finansieel lewensvatbaar te bly. Om hierdie rede gaan die navorser privatisering as alternatiewe strategie tot dienslewering ondersoek. Hierdie studie ondersoek maniere om aktiwiteite van die Tegniese Dienste Departement uit te kontrakteur met die uitsluitlike doel om koste effektiwiteit binne die Vista Universiteit te bewerkstelling. Die studie poog ook om 'n normatiewe model te formuleer en te implementeer om bogenoemde aktiwiteite te rugsteun. Die studie verduidelik ook hoe so 'n model die uitkontrakteur van Tegniese Dienste lewering kan assisteer en komplimenteer. Die studie identifiseer ook verskeie rolspelers wat deel sal vorm van die voorgestelde proses en wat ook direk en indirek deur die proses geraak en geaffekteer sal word. Die studie kom tot die slotsom dat die proses van uitkontraktering van Tegniese Dienste, kostebesparings binne die universiteit sal bewerkstellig. Die universiteit moet 'n stelsel implementeer wat seisoensgebonde is asook prysgebonde strukture daar stel wat die aspek van koste effektiwiteit sal aanspreek.