Outsourcing benefits administration - Implementing the different approaches

Abstract

Today's most forward thinking firms are using one of 4 basic approaches for contracting out the management and administration of support functions: 1. traditional outsourcing, 2. one-call service center, 3. workshare, or 4. insourcing. Whatever approach a company chooses, to help ensure successful implementation, it must evaluate 5 key areas: 1. services and functions to be outsourced, 2. service requirements, 3. benefits plans and administrative procedures, 4. available resources, and 5. the service contract. The evaluation determines, in each case, how the company's interests will best be serviced in relation to control, access to information, cost, corporate image, ease of operation, and flexibility.