In 2010, benefits administration outsourcing is being driven by the need for organizations to reduce HR transactional time and administrative costs, especially during a continued weak economy, says HR and benefits management services provider Secova.
Previous adopters of human resources outsourcing (HRO) services are making significant changes when restructuring their end-of-term contracts. According to the Everest Research Institute, the end of the term multi-process HRO market holds a great significance as $6 billion of contracts are nearing renewal in 2010 through 2012. Businesses just now entering the HRO market are seeking the missing component that is critical to navigate through daily challenges brought on by gap analysis, change management and process improvement.
"Given the economic climate and the potential legislative changes, intensive benefits and administrative restructuring has been a comprehensive undertaking for corporate HR," said Joel Carter, vice president new business development at Secova. "As the industry matures through the early part of the 21st century, human resource professionals have embraced the current call for HR transformation and are seeking new service delivery models that can deliver large productivity gains translating into a true competitive advantage."
Second generation HRO allows employers to redefine their strategies to reduce costs and improve performance by leveraging external intelligence and new technology. Manufacturing, banking, government, finance, healthcare, and most of the direct-to-consumer businesses such as the retail trade are embracing these new processes that enable their businesses to better position themselves for both the near and long term. These industries see a need for significant change, from innovative business models down to new and emerging programs that lower expenses; such as seen through the Dependent Eligibility Verification.
"In today’s economy, the mantra for most businesses is to keep costs low, and stay focused on their core competencies," said Venkat Tadanki, co-founder and CEO of the provider. "Keeping in mind, the clients’ requirements, we have developed customized offerings which, through the year, helped our clients save up to as much as 10 percent on the total dollars spent on H&W."
Secova: Businesses Looking For Change Through BA Outsourcing
