1. Beneifts Administration
   The Impact of Outsourcing on the Total Cost of Ownership
   
   
2. Ben Admin TCO Placemat
   A statement of the findings of the SOURCING ANALYTICS Total Cost of Ownership study for benefit administration
   
   
3. TCO Webinar Presentation
   A webinar presentation given on October 20, 2005 as part of ADP's Red Letter Day webinar series
   
   
4. TCO for Benefits Study: Results of an Industry Study
   A presentation given at the Annual Meeting of the Minds meeting in Orlando Florida March 28, 2006

 

 

Total Cost of Ownership of Benefits Administration

SOURCING ANALYTICS performed a TCO study of the costs of delivering health and welfare benefits administration and compared the costs of in-house administration to the costs of outsourcing to Automatic Data Processing (“ADP”). The results of this study reveal that on average, the cost per employee with outsourcing is less than the cost of performing benefits administration in-house ($195 vs. $165).

This study appears to be the first of its kind which specifically quantifies the costs of benefits administration. While many studies have documented the costs of healthcare in general, none have been found related to administration.

Now, SOURCING ANALYTICS can document in this ground-breaking study, the true costs of benefits administration. The study revealed:

• Outsourcing benefits administration is, on average, less expensive than in-house administration
  
  
• Companies including employee call center services in the outsourcing arrangement experience lower average TCOs than companies outsourcing administration service alone without call centers.
  
  
• The cost relationships described above are seen across company size groupings
  
  
• The cost relationships described above apply regardless of benefit program complexity
  
  
• Despite the lower average cost, outsourcing provides significantly higher likelihood of providing web-based employee self-service than companies administering in-house.
  

36 companies, each with more than 1,000 employees, participated in the study which provided surprising results. To find out more and see a detailed analysis read the whitepaper.