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Workday HCM Growth Forges Expanded Partnerships with HRO Providers

Workday’s latest announcement of its expanded partnership with ADP focuses on a combination of technology and service; MNCs on Workday can now include ADP’s global payroll offering within one user experience. Through the partnership:

  • MNCs can use ADP’s global payroll functionality from within Workday's user interface in one process for managing their global workforce and process payroll in ~100 countries
  • Clients can enter complete local data directly into Workday where it is automatically validated and utilized by ADP to create one global payroll experience
  • Legislative updates from ADP via the Workday user interface, including country-specific and local regulatory changes, will be automatic.

Prior to the Workday announcement, ADP already offered payroll services that supported cloud HR technology integration into third party SaaS technologies, including Workday, with certified interfaces across several countries in North America, Latin America, Asia Pacific, and Europe. ADP’s multi-country payroll business has been experiencing strong double-digit growth, and its expanded partnership with Workday will further increase its payroll revenues. Although not part of the announcement, clients can also use ADP’s other HRO services which, in addition to the full suite of payroll, includes HR administration, RPO, and benefits administration.

Other HRO providers partnering with Workday to provide services include:

  • OneSource Virtual (OSV): all of its clients include Workday implementations, of which ~85% include payroll, with OSV doing payroll administration for ~70%. OSV also provides services that include garnishments, payroll tax, HR administration, employee call center, and benefits administration
  • NGA HR: Several clients use Workday payroll in the U.S. and NGA HR for payroll in all other countries. A significant share of NGA HR’s revenue is linked to clients using Workday, and several Workday clients are multi-country connected through its Payroll Exchange; NGA HR also provides HR administration and employee call center support.

Workday continues strong revenue growth, with recently reported FY Q3 2016 revenues up 42% y/y. And ~40% y/y growth is expected in FY 2016. ADP and all the aforementioned providers should benefit from this growth as clients seek HCM technology and HR services support.

Other NelsonHall blog articles reporting on the increasing momentum of cloud HR and Workday include:

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