[LIS-Forum] Statement on the Global Economic Crisis and Its Impact on Consortial Licenses

D Jotwani, Librarian IIT Bombay jotwanid at iitb.ac.in
Thu Jan 22 10:37:53 IST 2009


Dear All

You may be interested to see the following statement by the
International Coalition of Library Consortia.  please see the full
document at

http://www.library.yale.edu/consortia/icolc-econcrisis-0109.htm


INTERNATIONAL COALITION OF LIBRARY CONSORTIA (ICOLC)

Statement on the Global Economic Crisis and Its Impact on Consortial
Licenses

Written on behalf of the many library consortia across the world that
participate in the ICOLC, this statement has two purposes.  It is
intended to help publishers and other content providers from whom we
license electronic information resources (hereafter simply referred to
as publishers) understand better how the current unique financial crisis
affects the worldwide information community.  Its second purpose is to
suggest a range of approaches that we believe are in the mutual best
interest of libraries and the providers of information services.

The ICOLC library consortia consider the current crisis of such
significance that we cannot simply assume that libraries and publishers
share a common perspective about the magnitude of the crisis and the
best approaches to cope with it.  ICOLC members have been exchanging
perspectives about how the current economic recession will impact
consortia and their libraries.  We make the following forecasts about
the impact of this crisis on libraries and library consortia.

1.  We expect significant and widespread cuts in budget levels for
libraries and consortia:  reductions unlike the sporadic or regional
episodes experienced from year to year, with real and permanent
reductions to base budgets.  It may not be uncommon for library and
consortia budgets to decline by double digits year over year.  We have
yet to see the full effects, as many 2009 journal and database
subscriptions have already been renewed.  As of late 2008, many
institutions have declared significant budgets cuts in all areas
(content, staff, and operations) for 2009.  Some consortia are
experiencing significant economic impact in the current fiscal year; by
calendar and fiscal 2010, the cuts will be in full force and widespread.

2.  These cuts will be prolonged.  The public and education sectors will
likely lag in funding recovery.  Once funding is withdrawn over multiple
years, it will be years before budgets climb back toward pre-crisis
levels.

3.  Exchange rate fluctuations are complicating and in some cases
amplifying the impact.

We encourage publishers to recognize these fundamentally different
circumstances as we work together for the benefit of all parties.
Library consortia are uniquely positioned to be the most effective and
efficient means to preserve the customer base for publishers and create
solutions that provide the greatest good for the greatest number.  By
working together, publishers and consortia can create the most effective
pricing and renewal options and maintain the broadest base of
subscribing libraries and services.

While we cannot be prescriptive where solutions are concerned, we
suggest the following principles and techniques as likely to be the most
effective approaches.

Principle 1:  Flexible pricing that offers customers real options,
including the ability to reduce expenditures without disproportionate
loss of content, will be the most successful.  In stable times,
standardized pricing and terms may work relatively well.  Today,
purchasers will be under heavy pressure to reduce their outlays and need
solutions that let them do so while continuing to offer as much content
and service as possible.  It is in the publisher's best interest that we
avoid all-or-nothing, take-it-or-leave-it decisions and options, whose
lack of flexibility is likely to result in far greater damage than is
absolutely necessary.

Principle 2:  It is in the best interest of both publishers and
consortia to seek creative solutions that allow licenses to remain as
intact as possible, without major content or access reductions.
Content, once discontinued, will be very difficult to reinstate at a
later date. While there may be practical limits to this principle,
publishers, authors, scholars, and libraries will be best served by
those solutions that retain as much access to as much content as
possible.

With these two principles in mind, we suggest the following approaches:

1.  Purchasers will trade features for price; that is, we can do without
costly new interfaces and features.  This is not a time for new
products.  Marketing efforts for new products will have only limited
effects, if any at all.  Libraries will have few if any resources to
invest in new titles or more content elements.  Publishers who work with
the scholarly communities to understand what content is critically
needed will be the most successful.

2.   Putting price first will help all parties, because budget pressures
will drive decisions in a way never seen before.  Real price reductions
will be welcomed and can help to sustain relationships through the hard
times.

Even increases at inflation levels will not be supportable by many
groups and libraries.  Other approaches and options must be considered
and made available.  Some options may be uniquely created to take
advantage of local situations.  Therefore:

3.  Tailoring content to need and pricing accordingly can be very
helpful.  For example, customized approaches that look to usage patterns
as the basis for an adjustment may be equitable for all parties.  In the
case of tiered pricing schedules, applying this flexibly to core content
packages in combination with more affordable pricing for single titles
may create another affordable option.  Multiple, creative options are
needed so that library consortia can work with their members to fashion
the optimal purchase level.

4.  Multi-year contracts will be possible only with clear opt-out and/or
reduction clauses.  As difficult as these clauses can be, the only
alternative for many institutions will be year-to-year (or even shorter
term) licenses.  These increase the administrative overheads for all
parties and may encourage further reductions.  Additionally, opt-out
clauses must as well recognize the need for a flexible set of reduction
techniques that avoid penalizing customers in either the long or short
term.

5.  While annual payments currently are the most prevalent payment
schedule for group licenses, options will be needed for semi-annual or
quarterly payment schedules, in combination with more flexible
opt-out/reduction clauses and renewal cycles.  Libraries and consortia
may have very little warning of changes in their budgets.  Payment
options are a necessary precaution in light of rapidly changing
financial circumstances and expectations.
*  *  *

In combination, we suggest these approaches as a way to advance the
conversations among libraries, consortia and publishers, who all hope to
preserve existing relationships, provide as much information to users,
and generate as much business as budgets will allow.  We believe our
recommendations provide a solid foundation for the information
community, including the publishers of scholarly information, to go
forward together in these difficult times.

The current situation may in the long term serve as a catalyst that
challenges publishers, scholars and libraries to create a system that
will more efficiently produce and disseminate the growing output of
global scholarship.



Regards.




-- 
D. Jotwani
Librarian
Indian Institute of Technology Bombay
Powai, Mumbai 400076
Phone 91-22-25768920, 91-22-25720227




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