The shift to outsourcing benefits administration is rapidly gaining momentum as more employers slim down staff and hand off complicated administrative issues to outside experts.

The shift was apparent when Guardian Life Insurance surveyed benefits managers and employees before last year's enrollment, and found a significant year-over-year increase in the number of respondents who said they were planning to increase the use of third-party benefits services.

The information was among the findings of an extensive survey commissioned by Guardian, dubbed The Guardian Workplace Benefits Study. The annual study revealed the trend toward outsourcing is being driven by the twin factors of reducing internal costs and delegating difficult tasks to outside authorities.

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.