A number of large corporations are entering a new field: managing welfare programs for states and counties. Now that the new welfare law is in place, many governments are eager to have the companies apply their management skills to the substantial task of overhauling and reforming welfare programs.

• Corporations such as Lockheed Martin, Electronic Data Systems and Andersen Consulting are entering the field.

• They are joining nonprofit organizations and three smaller for-profit companies -- America Works, Curtis & Associates and Maximum Inc. -- in competition for contracts.

• To officials facing capped welfare budgets and financial penalties if they do not move most recipients into jobs in two years, fixed-price contracts with corporations are said to have strong appeal.

While some public employees and their unions are opposed to the trend, various early successes have made converts to welfare privatization out of others.