OUTSOURCING IS a relatively new business idea first identified by management consultant Peter Drucker in 1989. Drucker advocated that companies should only seek to outsource in those areas in which it demonstrated no special abilities. In doing so, they could improve overall performance and achieve the service needed by taking advantage of the specialist provider’s knowledge and economies of scale. There are no signs of a slowdown with this approach in years to come.
Over the decades, outsourcing of tasks and services has spread across national boundaries and nearly all industry lines. In fact, it has become its own industry. Initially used as a tool for large textile, manufacturing and IT companies, outsourcing today has become increasingly popular in much smaller operations—including private clubs.
The advantages of outsourcing include:
- Greater overall budget flexibility (no need to hire more employees, or provide training, benefits, etc.)
- Increased ability to pay for services and business functions when needed
- Reduced need to hire and train specialized staff
- Built a partnership that provides value and reduces risk
- Improved company focus
- Accessed world-class capabilities through a larger talent pool
- Released internal resources for other purposes
- Improved efficiencies
Despite the economic benefits and legal protections that come with outsourcing, the term is sometimes wrapped in negative connotations particularly for industries and companies at the high end of the scale, such as loss of jobs.
With a proper fit, outsourcing embodies everything a club wants in terms of lower costs while keeping at arm’s length everything it doesn’t—including legal exposure. What if outsourcing solutions could turn around a department and reflect the overall mission of the club? Outsourcing represents a means to that end.
Mark Brenneman, PGA, is the chief business development officer for CADDIEMASTER, the premier provider of caddie management and training services with more than 50 partnerships in 22 states and four countries. He can be reached at [email protected] or 702-807-3448. For more information, visit caddiemaster.com.