ADP Among HCM Top 500

One ADP Boulevard

Roseland, NJ, 7068, United States

1 973-974-5000

http://www.adp.com

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ADP Strengths, Domain Expertise, and Key Differentiators

Leveraging nearly 70 years of experience in outsourcing, ADP offers a wide range of human resource, payroll, tax, and benefits administration solutions from a single source. ADP pays approximately 22 million (approximately 1 out of every 6) workers in the United States as of their fiscal year ending in June 2020. ADP serves more than 765,000 clients via ADP’s cloud-based strategic software as a service (“SaaS”) offerings.

Since 2011 ADP has invested billions of dollars in acquisitions as well as internal development efforts to bulk up its HCM offerings. In addition to its mainstay in payroll services, ADP has expanded into different segments of the HCM market with global solutions for Core HR, recruiting, benefits, compensation, candidate relationship management, performance, and succession planning, all of which are available via Cloud delivery as well as managed services. Currently, Workforce Now is its major Cloud HCM product, while RUN is its Cloud-based payroll service. The strength of ADP lies in its ability to package different products as HR services, which can be made readily available without complex and drawn-out implementation.

Hence helping its clients migrate to the Cloud is similar to switching off old systems and immediately replacing them with more intuitive features via Web services, all done without the involvement of the IT operations. With its track record of assuming difficult process integration on behalf of its users, ADP can widen the adoption of these Cloud services on a massive scale. While payroll is usually included as part of its Cloud services, ADP now experiences considerable attach rates as customers add Cloud modules for benefits, time and attendance, and talent management to their standard HR, payroll, and tax compliance services.

During the fiscal years ended June 30, 2020, 2019, and 2018, ADP invested approximately $947 million, $911 million, and $1 billion, respectively, in systems development and programming, which includes expenses for activities such as client migrations to new strategic platforms, the development of new products and maintenance of existing technologies, including purchases of new software and software licenses.

ADP Recent Developments

ADP provides its services to over 860,000 clients, with over 765,000 of those clients on its latest strategic SaaS cloud solutions. ADP was the first HCM vendor to launch a cross-platform mobile app, a top 5 business app, and a rating of more than 4.5 stars on the app store and is consistently among the top 5 most used apps for business in any category.

ADP's HR Outsourcing business continues a market-leadership position, with more than 2.5 million combined employees served across PEO and HR BPO offerings. And outside the United States, ADP pays approximately 15 million employees in over 140 countries with its multinational and local in-country solutions.

ADP Mergers and acquisitions (M&A) Activities

In January 2018, ADP acquired WorkMarket, a cloud-based workforce management solution provider that allows companies to build and manage an integrated workforce across W-2 employees, 1099 contractors, vendors, and other types of workers. With this acquisition, ADP builds on its current portfolio of industry-leading payroll and human capital management solutions that help clients and workers modernize the way work gets done while unlocking productivity, engagement, and growth.

In August 2018, ADP acquired Celergo, a provider of global payroll management services. The acquisition enhances ADP's international payroll offerings with a strong platform and new solutions, including cross-currency and expatriate payment services.

ADP also acquired Global Cash Card where ADP gained an industry-leading proprietary digital payment processing platform that enables innovation and added value services for clients and their workforces, as well as a large, diversified client base.

In January, 2017, ADP acquired The Marcus Buckingham Company (TMBC), an innovator in human capital management (HCM), to bring to ADP clients a more scientific approach to employee engagement and performance.

ADP Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying ADP applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of ADP and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified ADP GlobalView, ADP Resource, ADP SmartCompliance, ADP Streamline, ADP TotalSource, ADP Vantage HCM, ADP Workforce Now, customers.

ADP Key Cloud and HCM Applications

ADP GlobalView, ADP Resource, ADP SmartCompliance, ADP Streamline, ADP TotalSource, ADP Vantage HCM, ADP Workforce Now,

ADP HCM and Cloud HCM Applications Revenues, $M:

Type/Year20182019YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
HCM Applications Revenues, $M Subscribe Subscribe Subscribe
Cloud HCM Applications Revenues, $M Subscribe Subscribe Subscribe

* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

ADP Revenue Breakdown by Type:

TypeLicenseServicesHardwareSupport & MaintenanceSaaS
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe

ADP Total and HCM Applications Revenues by Region:

Region% of Total Revenues2019 Total Revenues, $M2019 HCM Applications Revenues, $M
Americas Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe

ADP Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

ADP Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified ADP Customers


No. of ADP Customers: 860000

No. of ADP HCM Applications Customers: 860000

No. of ADP Cloud HCM Customers: 765000

No. of ADP Cloud HCM Subscribers: x


ADP provides its services to over 860,000 clients in more than 140 countries and territories. Among its HCM customers are ADT, Benevis, Central Bank, DXL, Education Affiliates, Equinix, Shoe Carnival, Valley National Bank and Wheelabrator.

ADP Market Opportunities, M&A and Geo Expansions

In August 2018, ADP acquired Celergo, a provider of global payroll management services. The acquisition enhances ADP's international payroll offerings with a strong platform and new solutions, including cross-currency and expatriate payment services.

In May 2018, ADP launched Wisely Pay, the first offering resulting from ADP's acquisition of Global Cash Card and provides the administrative tools and support for employers of any size, industry, and workforce blend of full-time, part-time, and/or freelance workers.

In January 2018, ADP acquired WorkMarket, a leading cloud-based workforce management solution provider that allows companies to build and manage an integrated workforce across W-2 employees, 1099 contractors, vendors, and other types of workers.

ADP has completed the acquisition of Global Cash Card, a leader in digital payments, including paycards and other electronic accounts. With the acquisition of Global Cash Card, ADP becomes a human capital management provider with a proprietary digital payments processing platform and enable ADP to offer digital accounts and flexible payment offerings across their existing base of more than 740,000 clients, while increasing the speed of implementation for new clients.

ADP Risks and Challenges

Much of the attention is now on ADP's next-generation payroll engine Lifion and whether it lives up to its billing, which has been touted one of the most significant Cloud-native solutions in years from the payroll processor.

In its fourth quarter of FY20, ADP revenues dropped 3% vs. the previous year, a decline largely attributed to declines in payrolls caused by the pandemic. ADP anticipates significant headwinds, particularly through the end of the calendar year 2020, as employment remains low and businesses potentially succumb to additional closures and bankruptcies. ADP expects out-of-business pressures among its clients to moderate from the levels seen in the spring of 2020 but continue above-trend into calendar year 2021.

ADP Ecosystem, Partners, Resellers and SI

In July 2020 ADP has been awarded with a new contract through OMNIA Partners, Public Sector, to provide simplified procurement and competitive pricing for Pre-Employment Background Screening, Related Products, and Services. OMNIA Partners, Public Sector is the nation’s largest cooperative purchasing organization for state and local government, K-12 education, colleges, and universities.

The partnership joins ADP’s existing public sector contract with OMNIA Partners for Managed Business/Operational Services and Solutions, which helps public sector entities build an employee-centric workplace that continues to support organizational growth. ADP’s background screening services deliver a complete approach to help ensure the candidate's organizations choose to meet company expectations. ADP technology enables companies to optimize their background check processes for U.S. and international locations under one system.

ADP market their solutions primarily through direct sales force. Employer Services also markets its solutions through indirect sales channels, such as marketing relationships with certified public accountants and banks, among others. ADP has approximately 6,500 quota carriers.

Additionally ADP partners with vendors such as Concur, Cornerstone OnDemand, and Kronos by reselling their products for travel and expense management, HCM, and workforce management. ADP also has partnerships with Informatica and Salesforce.com.

ADP has also opened access for developers and system integrators to their platforms’ Application Programming Interface libraries through the ADP Marketplace. With ADP Marketplace, clients can integrate employee data from ADP core services across their other business systems, providers, or platforms. This access enables the exchange of client data housed in ADP's databases and creates a unified HCM ecosystem for clients informed by a single, comprehensive repository of their workforce data.

ADP Cloud Platform (PaaS) and Infrastructure (IaaS) Details

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Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.


Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).


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