Seeking varied advantages, Europe embraces outsourcing; Arrangement offers chance to save, focus, be consistent.(Benefits Management: Consulting & Outsourcing)

Byline: SARAH VEYSEY

European employers are increasingly interested in outsourcing parts of their employee benefits programs.

Employers' desire to wring costs out of their human resources and benefits functions has been a key impetus behind the growth in outsourcing, observers say. Companies also are outsourcing administrative functions as a way to focus on what they see as more critical operations, such as those related to corporate strategy and governance.

In addition, outsourcing can make human resources and benefits programs run more smoothly for those employers with operations in several European countries, consultants note.

U.K. employers have increased their use of outsourcing in the past few years, a survey shows.

In a poll of 1,188 U.K. companies conducted late last year, the London-based Chartered Institute of Personnel Development, which represents human resources professionals, found that 24% of respondents had increased their use of external providers for employee benefits in the prior three years, …