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 26 million (approximately 1 out of every 6) workers in the United States. ADP serves more than 630,000 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 adoptions 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, 2018 , 2017 , and 2016 , ADP invested approximately $1 billion, $859 million, and $818 million, respectively, from continuing operations, 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 810,000 clients, with over 710,000 of those clients on our latest strategic SaaS cloud solutions. ADP was the first HCM vendor to launch a cross-platform mobile app, a top 5 business app and 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 enhance ADP's international payroll offerings with a strong platform and new solutions, including cross-currency and expatriate payment services. In October, 2017 ADP 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.
ADP Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD ask 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.
Ownership: - ADP : Nasdaq GS
Number of Employees: 58000
Functional Market: Absence and Leave Management, Workforce Analytics, Scheduling, Time and Attendance, Core HR, Payroll, Benefits Administration, Compliance, Contingent Labor Management, Onboarding, Recruiting, Candidate Relationship Management, Applicant Tracking Systems, Performance and Goal Management, Learning and Development, Succession and Leadership Planning, Compensation Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction and Real Estate, Consumer Packaged Goods, Distribution, Education, Government, Healthcare, Insurance, Leisure and Hospitality, Life Sciences, Manufacturing, Media, Non Profit, Oil and Gas, Professional Services, Retail, Transportation, Utility,
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/Year||2017||2018||YoY 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:
|Type||License||Services||Hardware||Support & Maintenance||SaaS|
|% of Total Revenues||Subscribe||Subscribe||Subscribe||Subscribe||Subscribe|
ADP HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets
2018 HCM Revenues, By Sub-Functional Markets, $M
ADP HCM Applications Revenues By Verticals, $M:
ADP Total and HCM Applications Revenues by Region:
|Region||% of Total Revenues||2018 Total Revenues, $M||2018 HCM Applications Revenues, $M|
ADP Direct vs Indirect sales
|Region||Direct Sales||Indirect Sales||Total|
ADP Customers - Breakdown by Geo, Size, Vertical and Product
No. of ADP Customers: 810000
No. of ADP HCM Applications Customers: 810000
No. of ADP Cloud HCM Customers: 710000
No. of ADP Cloud HCM Subscribers: x
ADP provides its services to over 810,000 clients in more than 140 countries and territories. Among its HCM customers are Shoe Carnival, Franklin Electric, Neopost, Equinix, Benevis, Education Affiliates, Wheelabrator, ADT, Comerica, Pinnacle Agriculture, American Campus Communities, Destination XL (DXL), Central Bancompany and Valley National Bank.
ADP Market Opportunities, M&A and Geo Expansions
In August 2018, ADP has acquired Celergo, a provider of global payroll management services. The acquisition enhance ADP's international payroll offerings with a strong platform and new solutions, including cross-currency and expatriate payment services.
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.
In October 2017, 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 become 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. In May, 2018, ADP announced 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.
ADP Risks and Challenges
Because of its diverse product portfolio, ADP’s Cloud strategy augments its services capability from business process outsourcing to hosting support. In fact ADP would often seek to differentiate itself from other enterprise applications vendors by stressing its deep service capability. Though ADP does not position itself as a software vendor per se, its breadth of software and service offerings is putting it in the crosshairs of a wide spectrum of competitors. In that respect ADP needs to excel on both ends of the spectrum with highly differentiated services delivery and Cloud software, a hurdle that has confounded an array of technology companies from Dell to IBM that try to reinvent their services business in the Cloud era.
The upshot is that ADP can handle the task of delivering software to customers through whatever channel they prefer. The issue is whether ADP can carve out a significant niche of retaining the best attributes of business process outsourcing and managed services while accelerating Cloud software delivery with continuous innovation.
ADP Ecosystem, Partners, Resellers and SI
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
Subscribe to read more about:
- ADP Public Cloud and Infrastructure (IaaS)
- ADP Platform (PaaS)
- ADP Application Delivery
- ADP Private Cloud and Data Centers
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).
For additional information on our methodologies, here's the link:
Copyright © 2019, APPS RUN THE WORLD