IDC Releases First Forecast for U.S. Employee Benefits Outsourcing Services; Healthcare Reform Will Be the Key Driver for Market Growth in the Coming Years

FRAMINGHAM, MA – August 25, 2010 – The International Data Corporation (IDC) presented its first forecast and market landscape analysis for the U.S. employee benefits outsourcing services market and found that 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%.

"The big theme for 2010 and beyond is healthcare reform," said Lisa Rowan, program director, HR, Learning and Talent Strategies for IDC. "To grow their positions in the market and win over new clients, service providers should consider maximizing their message on compliance expertise and look to focus on lesser outsourced functions such as leave administration."

Additional key findings from this IDC report include the following:

* The impact of the U.S. Patient Protection and Affordable Care Act (PPACA) healthcare reform signed into law in 2010 will take a number of years to take effect, but there is certain to be confusion as the various elements become enforceable. This concern 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.

The IDC 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. The purposes of this study are to analyze and quantify the U.S. market opportunity for employee benefits outsourcing services and to offer recommended strategies for taking advantage of opportunities.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com [http://www.idc.com].

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