149 Copyright © 2016, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 7 DOI: 10.4018/978-1-4666-9455-2.ch007 ABSTRACT A 21st Century Classroom is a learning environment that incorporates current critical thinking, problem solving, communication, and collaboration skills into traditional core knowledge instruction. Fostering this space will enable students to integrate core subjects and lead to a deeper understanding of global awareness and greater economic, civic, health and environmental literacy. Skeptics have argued that transforming higher education, especially to attenuate its cost is something, which we know, but we cannot get it. However, information technology is a way to achieve this required transformation. This chapter explores explore how information technology might help achieve this transformation to advance higher education, and its prospects for success. 1. INTRODUCTION Information Technology (IT) means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video (North Dakota Information Technology Department, 2014). IT also included the Internet and World Wide Web (WWW). IT is an essential ele- ment for endorsement and assessment of courses taught in higher degrees. IT also provides support to teachers for communicating with various stakeholder and to students to adapt to new environments. Both teachers and students view IT as a change agent for producing a large, positive impact on their camps lives. IT provides numerous learning services for both faculty and students. Higher education institu- tions (HEIs) must include exchange of knowledge as part of these learning services. This exchange of knowledge occurs among faculty, students, and staff that are specialists in their relevant fields of knowl- edge. As such, the HEIs as whole can benefit from this pool of specialized knowledge to improve their decision making. In order better educate citizens so that they are able to live in an ever more complex IT in Higher Education- Possibilities and Prospects in an Era of Economic Crisis Amir Manzoor Bahria University, Pakistan