Health and Welfare Benefits Administration Outsourcing (H&W BAO) is one of the most compliance-driven markets in the HRO space. Due to increasing complexities and stringent regulations, enterprises are looking to utilize the knowledge and process expertise of various health & welfare benefits administration providers to ensure that they are compliant and provide the best experience to their employees.
Along with the traditional drivers of cost reduction and process efficiency, drivers, such as access to technology solutions, domain expertise, and employee experience, are becoming relevant for the buyers. With their understanding of the regulatory environment and confidence in the outsourcing construct improving constantly, buyers expect a holistic benefits experience.
Service providers are trying to expand their role and be more of a strategic partner rather than just a health and welfare benefits administrator. They are investing in developing proprietary AI-based chatbots, decision support tools, and intelligent virtual assistants to help the participants make informed decisions. To address the trend of “consumerism,” service providers are expanding their services to offer a broader range of benefits, such as voluntary benefits, wellness programs, and CDHPs, as these play an increasingly important role in helping enterprises reinforce their employer brand to attract and retain top talent.
In this research we analyze the global H&W BAO market across the following dimensions:
- H&W BAO PEAK Matrix 2018
- Everest Group’s analysis of service providers
Scope
- At least two core services in the H&W BAO value chain are outsourced
- Deal length is at least two years
- All industries and geographies
Content
This report examines the dynamics of the global H&W BAO service provider landscape and its impact on the H&W BAO market. Based on the comprehensive Everest Group PEAK Matrix, each of the 11 H&W BAO service providers are segmented into Leaders, Major Contenders, and Aspirants.
- Leaders: Alight Solutions, Conduent, and Willis Towers Watson
- Major Contenders: ADP, Bswift, Businessolver, Empyrean, Mercer, and Secova
- Aspirants: Benefitexpress and OneSource Virtual
The report presents some key findings on the performance of different service provider categories. Additionally, it provides insights into the strengths and areas of improvements of each service provider.
Membership(s)
Human Resources Outsourcing (HRO)
