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ADP - Next Generation HCM Technology 2023

Vendor Analysis

by DeeAnna Warrington

published on Jun 30, 2023

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Report Overview:

This vendor assessment analyzes ADP's offerings and capabilities in next generation HCM technology.

Who is this Report for:

NelsonHall’s Next Generation HCM Technology Vendor Assessment for ADP is a comprehensive profile of ADP’s HCM platform offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of HCM Technology and identifying vendor suitability for HCM Technology RFPs
  • Vendor marketing, sales, and business managers looking to develop strategies to target service opportunities and benchmark themselves against their peers
  • Financial analysts and investors specializing in the HR Technology sector
  • HR and Payroll decision makers.

Scope of this Report:

The report provides a comprehensive and objective analysis of ADP’s Next Generation HCM Technology services, offerings and capabilities, and market and financial strengths, including:

  • Identification of the company’s strategy, emphasis, and new developments
  • Analysis of the company’s strengths, weaknesses, and outlook
  • Revenue estimates
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s offerings and key service components
  • Analysis of the company’s delivery organization, including delivery locations.

Key Findings & Highlights:

Founded in 1949 and headquartered in Roseland, New Jersey, ADP is a provider of payroll and HR management software and services. ADP’s business is organized into the following two business segments:

  • Employer Services (~70% of revenues): provides HR Business Process Outsourcing (BPO) and technology-enabled HCM solutions; offerings include payroll services, benefits administration, talent management, HR management, time and attendance management, insurance services, retirement services, tax and compliance services, and people analytics and benchmarking to ~1m clients worldwide
  • PEO Services (~30% of revenues): ADP TotalSource provides employment administration outsourcing services for small and mid-sized businesses, including payroll, benefits administration, and compliance services through a co-employment relationship. It services ~15.5k clients and ~700k employees in the U.S.

ADP offers several cloud-based HCM solutions, including:

  • Roll Powered by ADP: AI and NLP-enabled, mobile-first HR, payroll, and time and attendance platform for organizations with 1–5 employees
  • RUN Powered by ADP: for organizations with <50 employees
  • ADP Workforce Now: for mid-market organizations with up to 5k employees in the U.S. and Canada, and offers integration with ADP Global Payroll
  • ADP Next-Gen HCM: for U.S.-headquartered organizations with >3k employees and outside the U.S. via integration with ADP Global Payroll
  • ADP iHCM: for EMEA- and APAC-based multinational organizations with <1k employees.

ADP has ~60k personnel within its Employer Services business, supporting ~1m payroll clients, processing payroll for ~39m client employees, and supporting 90 countries and 12 languages. ADP has a local payroll presence in 20 countries and directly services 54 countries. It has six core Centers of Excellence (COEs) in the U.S., Czech, India, Philippines, Spain, and China, with delivery centers throughout North America, LATAM, APAC, and EMEA.

ADP’s solutions are not industry-specific; therefore, it targets and services organizations from various industry verticals. Its technology can handle common, industry-specific nuances and challenges, supplemented through the ADP Marketplace with integrated third-party solutions or services. The top four industries represented within its client base include professional services, manufacturing, healthcare, and retail.

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