September 26, 2011: A webinar on October 11, 2011 will reveal some of the crucial facts on the Benefits Administration Outsourcing (BAO) industry.
Everest group conducted a survey on Benefits Administration Outsourcing sector according to which coming years is to witness a boom in the Benefits Administration Outsourcing sector. The study could found out that companies are more focused today and looking forward to tap the single opportunity available. For the time being it is clear that the possibilities in the Human Resource Outsourcing (HRO) will be tapped in the coming years by US based companies.
The study says the trend on depending on offshore service providers by global companies, particularly the US based firms has drastically increased and will continue to do so more in the coming years. Today the BAO industry is growing rapidly at a rate of 12.5 % every year, which is considerably an outstanding performance. According to the Everest report the industry might cross $ 5 billion mark very soon.
To be more specific the US based service buyers which typically depend on the offshore market for services related to Health and Welfare has increased four times while comparing to the rate at which they outsource other HR related services. Off course cost efficiency being the major benefit, other benefits such as improving employee commitment are enhancing the company with perfect HR solutions are also in concern of these US based service buyers or companies.
Everest research also focuses on certain inclination been seen in the European countries and even the German towards outsourcing BAO related jobs to the offshore and is expected to catch momentum. Other findings of the study report reveal that global sourcing has been increased in the year 2010-2011 and also it is expected that there will be some increase in the public sector companies and service sector firms depending on outsourcing. At present many vendors are capable enough with technological advancement and process efficiencies and growing as big competitive threat for offshore players. Vendors are also in prefer of adopting expansion strategies such as mergers and acquisitions so that they can become competitively advances to attract more US based service buyers.
Any way we need to wait till October 11th to get a detail version of the study conducted and the webinar to be hosted on the same date will leverage the Everest report on Business Administration Outsourcing and its scope as eminent personalities in the Business Process outsourcing (BPO) sector will be delivering their opinions and reviews on the study. As far as US based outsourcing service buyers are concerned, they will be focusing and exclusively depending on the third party vendors in the offshore markets for benefits outsourcing.