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ADP - Payroll Services
Vendor Analysis
published on Sep 01, 2016
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Report Overview:
This NelsonHall vendor assessment analyzes ADP's offerings and capabilities in Payroll Services.
Who is this Report for:
NelsonHall’s Payroll Services Vendor Assessment for ADP is a comprehensive assessment of ADP’s payroll services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of payroll outsourcing and identifying vendor suitability for payroll services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector
- HR and payroll decision makers.
Scope of this Report:
The report provides a comprehensive and objective analysis of ADP’s payroll services offering, capabilities, and market and financial strength, 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, size and scale of delivery locations and their activities.
Key Findings & Highlights:
ADP is a global provider of HR BPO services and is the largest payroll company globally, providing payroll services to ~36m employees. The company is organized into two business units:
- Employer Services (75% of revenues): provides HR, payroll, benefits, recruitment and related services to ~630k clients worldwide
- PEO Services (25% of revenues): under ADP TotalSource, provides employment administration services for organizations with 10 - 200 employees. Services offered include payroll, benefits administration and compliance services, and are provided through a co-employment relationship, servicing ~8.7k clients, with ~387k worksite employees in the U.S.
ADP pays ~36m employees globally, across 630k payroll clients.
By NelsonHall rankings, ADP is the largest payroll provider globally, in terms of revenues. Approximately 70% of its business is based in the U.S., where it is the largest provider of payroll. Since 2010 it has undergone a number of acquisitions which have increased its global capability and ability to service global clients.