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ADP - Next Generation HCM Technology

Vendor Analysis

by Pete Tiliakos

published on Sep 09, 2021

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Report Overview:

This NelsonHall assessment analyzes ADP's offerings and capabilities in Next Generation HCM Technology

Who is this Report for:

NelsonHall’s HCM technology profile on ADP is a comprehensive assessment of its offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of HCM technology platforms and identifying vendor suitability for RFPs
  • Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the HR technology and services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of ADP HCM Technology offering, 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 the location for key centers.

Key Findings & Highlights:

ADP, founded in 1949 and headquartered in Roseland, New Jersey, is a provider of HCM 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 >905k clients worldwide
  • PEO Services (~30% of revenues): under ADP, TotalSource provides employment administration outsourcing services for organizations with 1 to 999 employees, including payroll, benefits administration, and compliance services through a co-employment relationship; servicing >14.5k clients and >620k worksite employees in the U.S.

Within Employer Services, ADP's offerings include software and services for:

  • Payroll services
  • Tax and compliance
  • HR administration
  • Workforce management (WFM)
  • Benefits administration
  • Recruitment process outsourcing (RPO)
  • Talent management
  • Insurance services
  • Retirement services
  • Payment and compliance solutions
  • Pre-employment.

ADP launched its first SaaS-based product offering in 1998 called EasyPayNet and 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 targets its portfolio of HCM technology platforms to employers of all sizes, aiming to support clients with a platform-based offering inclusive of technology and extended managed HR services. 

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