Outsourcing Administration of Benefits

Paper instructions:
Years ago the personnel manager and staff handled employee questions and managed the administration of employee benefits. Today, most companies have decided to outsource their benefit administration to third-party vendors.

What is your opinion? Is the 1-800 number a better solution? Does it ensure more privacy for the employee? Or, is the 1-800 number impersonal, thus making the relationship between employer and employee more distant?

Post your opinion and as always, be sure to cite examples. In this discussion, use examples from outside resources, your own experiences, or the experiences of others.
Books
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2013). Compensation (11th ed.). New York, NY: McGraw-Hill/Irwin. ISBN: 9780078029493.