My job, along with a dozen others' at our small private university, has been outsourced to a company that takes over information technology functions for institutions of higher learning seeking to save some money. Only half the IT crew at the University of St. Thomas remains, all as contractors for Ellucian. The IT help desk is now a 24-hour operation, with calls re-directed to Ellucian personnel in New York and India.
Without going into too much detail, let's just say that UST has been struggling financially for several years. For a while, its graduate education and counseling programs were its steadiest sources of revenue, but then even that started to drop off. Eventually you run out of classroom teachers willing to fork over $100K for a relatively easy masters degree to become counselors and principals, especially when there are no more openings for counselors and principals.
UST is certainly not alone in the struggle: Private colleges and universities all over the US have had trouble making all their ends meet their means, with the exception of the extremely well endowed institutions like Rice and Harvard. Four-year colleges and universities as a whole are losing market share to community colleges and those dreadful for-profit degree mills with no admission standards other than willingness to incur mountains of debt.