Benefits administration (pension, health and welfare) onshore outsourcing is set to grow at a 10% CAGR, from approximately $14 million in 2005 to $22 million in 2010, according to NelsonHall (See Chart 2).
SOURCE: NELSONHALL
Currently, there is very little offshore outsourcing in this area because of the perception that the technical skills to manage these processes are not available offshore. None of the U.S. and U.K. health and welfare service providers (e.g., Ceridian USA, Employease, Workscape, Capita, LCP) that NelsonHall interviewed, have any offshore-based administration staff.
Yet, the report predicts that increasing health-care costs will mean that by 2009, 11% of benefits administration will be managed from overseas.
