Vendor Analysis
published on Sep 01, 2025
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 Payroll 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, capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, challenges, 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 centers.
Key Findings & Highlights:
ADP provides HR management software and services. ADP’s business is organized into the following two business segments:
- Employer Services (~70% of revenues): provides HR Business Processing Services (BPS) and HCM solutions; offerings include payroll services, tax and compliance, benefits administration, talent management, HR management, workforce management, insurance services, retirement 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, through a co-employment relationship. It services ~15.5k clients and ~700k employees in the U.S.
ADP offers several HCM solutions, all of which include payroll technology and services, including:
- Roll Powered by ADP: for organizations with 1-5 employees
- RUN Powered by ADP: for organizations with <50 employees
- ADP Workforce Now: for organizations with up to 5k employees in the U.S. and Canada
- ADP Lyric HCM: for U.S.-headquartered organizations with >3k employees and outside the U.S.
- ADP iHCM: for EMEA- and APAC-based multinational organizations with <1k employees.
ADP pays ~42m employees across 1.1m clients and 140 countries and has 14m users on its app per month. It pays one in six U.S. workers.
