hen it comes to the technology to manage global benefits programs, outsourcing is in.

    Companies can buy software to administer employment benefits in various countries from vendors such as Oracle and SAP. But experts say global companies are turning to benefits consultants such as Mercer LLC and Hewitt Associates Inc. to manage health and retirement benefits, including the technology behind those programs. Benefit rules around the world are complex and change frequently, and companies prefer to avoid all of the employee calls and questions about benefits programs, said Jason Averbook, chief executive officer of HR technology consulting firm Knowledge Infusion in Minneapolis.

    "The trend is to outsource benefits," Mr. Averbook said.

    Benefits outsourcers act as intermediaries between companies and service providers such as health insurance companies and investment firms. Whether or not a company uses a benefits outsourcer, delivering benefits to employees typically requires a software system that exchanges data with providers.

    If a firm wants to manage global benefits internally, it can use software from a number of vendors. SAP software for benefits management, for example, is built to comply with regulations in nearly 50 countries, said SAP Vice President David Ludlow. The software allows customers to set up different benefits programs, such as defined contribution retirement plans and health insurance benefits, and includes technology to let employees enroll in benefits over the Web.

    Running benefits software in-house gives firms greater ability to sift through information to spot cost-saving trends, said Lois Schwartz, a Marietta, Ga.-based consultant who helps companies put SAP benefits software in place.

    "You have control of your own data," she said.

    Others argue that outsourcing can allow for smart data analysis. Mercer, for example, says its data management and reporting tools enable clients "to take an in-depth, real-time look at the data and analytics of your entire benefits program."

    Outsourcers also tout online options for employees. Hewitt says it helps employees make sound health-care decisions through online tools such as health plan comparison charts and health savings account estimators.

Ed Frauenheim is a reporter for Workforce Management.  To comment, e-mail editors@workforce.com.