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Well CS departments are rarely staffed by people who are interested in building actual software (if they were, they could just work in industry making significantly more money), and HR software is probably the worst vertical for a bunch of kids with no experience working in.

My school tried this in the early 90s: they held a contest to make class scheduling software. I don't think it worked out- I certainly did not enter it.

This was to replace the previous system: professor John van Alstyne just did it over a weekend.

I think that's a fine idea for a trade school