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ADP - Payroll Services 2022

Vendor Analysis

by Elizabeth Rennie

published on Aug 26, 2022

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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 is a provider of payroll and HCM management software and services. ADP's business is organized into the following two business segments:

  • Employer Services (~70% of revenues): provides technology-enabled HCM solutions and HR Business Process Outsourcing (BPO); offerings include payroll services, benefits administration, recruiting, and talent management, including RPO, HR management, time and attendance management, insurance services, retirement services, and tax and compliance services to ~990k 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; servicing ~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. ADP shared this year that it processed 1m pays for one client for the first time. It began offering payroll in 1949. It pays  ~39m employees across 140 countries and pays one in six U.S. workers. ADP has ~990k clients worldwide and processes $2.7 trillion in payroll/tax annually. In 2021 ADP extended its global payroll services in Colombia, Ethiopia, Brunei, and Ivory Coast. In 2022 ADP announced the acquisition of Sage’s South Africa payroll outsourcing business, increasing its capability in the region. 

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