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ADP - Cloud HR Transformation

Vendor Analysis

by Elizabeth Rennie

published on May 22, 2020

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Report Overview:

This NelsonHall assessment analyzes ADP's offerings and capabilities in Cloud HR Transformation

Who is this Report for:

NelsonHall’s Cloud HR Transformation Services profile on ADP is a comprehensive assessment of ADP offerings and capabilities, designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of Cloud HR Transformation 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 Cloud HR Transformation Services sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of ADP’s Cloud HR Transformation 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:

This NelsonHall vendor assessment analyzes ADP’s offerings and capabilities in Cloud HR Transformation Services.

ADP is primarily known for its payroll capability. It pays ~26m employees in the U.S. and ~41m employees globally and its origins are in delivering payroll services since its inception in 1949. However, to increase the strategic value of its products and services to clients, over the last five years, ADP made strategic investments in developing its HCM platforms and Cloud HR Transformation Services that support these platforms.  It’s strategic products, RUN, Workforce Now and Vantage are all Cloud SaaS-based.  ADP’s first RUN client was in 2007, Workforce Now was launched in 2009 and Vantage was launched in 2012. It has ~ 810k total ADP clients, of which ~ over 710k clients use ADP’s most modern suite of HCM delivered platforms. A small minority of its Vantage HCM clients purchase payroll standalone, on average new clients purchased 3+ modules. Additional HCM platforms have been developed to support different markets, including ADP Workforce Now and ADP Vantage HCM. More recently, in late 2019, ADP announced it would invest in a new Cloud HR platform, Next Gen HCM, which will be developed alongside its Next Gen Payroll and Next Gen Tax solutions.  As well as developing its proprietary software, ADP has a strong history of acquisitions to support expanding its service capability and geographic footprint.

ADP's Cloud HR Transformation Services are offered to U.S. and Canadian organizations only where ADP proprietary software is selected. All of ADP's HR service offerings are based on cloud platforms.

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