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ADP - Payroll Services 2023
Vendor Analysis
published on Aug 29, 2023
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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 profile on ADP is a comprehensive assessment of ADP’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Payroll Services and identifying vendor suitability for security services RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the Payroll Services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of ADP’s Payroll 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 the location of delivery locations.
Key Findings & Highlights:
ADP, founded in 1949 and headquartered in Roseland, New Jersey, provides payroll and 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 ~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 payroll services to clients with one employee up to large, enterprise-sized organizations. It began offering payroll in 1949. It pays ~40m employees across 1m clients and 140 countries. It pays one in six U.S. workers. In 2022 ADP extended its global payroll services in Morocco, Israel, Macau, Ivory Coast. In 2022 ADP announced the acquisition of Securax (India) and Infocom (Italy).