Health Reform a Big Opportunity for Benefits Outsourcing

August 25, 2010 ( - The International Data Corporation (IDC) forecasts that U.S. employee benefits outsourcing services spending in 2010 will grow 3.8% over 2009.

Additionally, IDC forecasts spending in this market segment to reach $10.3 billion in 2014, growing at a compound annual growth rate (CAGR) of 6.1%. 

In a press release, IDC said the Patient Protection and Affordable Care Act (PPACA) will spur employers to seek outside assistance in the form of ongoing consulting and in some cases outright outsourcing of some health benefit functions. IDC forecasts that the employee benefits outsourcing services market will grow more rapidly in 2010, with double-digit growth through 2014 for health benefits, while retirement benefits will grow more moderately at single-digit rates.   

With slow momentum in new employment, providers will continue to need to sell new buyers on the benefits of outsourcing to sustain and grow revenue, according to the company.   

The study, U.S. Employee Benefits Outsourcing Services2010-2014 Forecast and Analysis (IDC #224573), examines the market landscape and provides a five-year forecast for the U.S. market for employee benefits outsourcing services, the first such forecast published by IDC.

Information on purchasing the study report is here.