ES Sales Learning & Performance Processing Options Question? 36% What percentage of companies out there DON’T have a payroll system? 54% 77% 2 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. 100% Welcome! Different Processing Options Available to Companies Examples of Each Advantages and Disadvantages of In-house vs. Outsourcing Options 3 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Options In-house 4 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Outsourcing In-house Users Payroll software Paper / Folders Manual Excel spreadsheets HR software No Service 5 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Liability and Risk In-house: Accounting Packages Basic Accounting QuickBooks Peachtree MAS90 6 Industry Specific Timberline Master Builder Blackbaud © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Enterprise Resource Planning SAP Oracle Lawson In-house: ERPs Core Modules – Accounts Receivable/Payable – General Ledger – Billing – Stock/Inventory – Purchase Order – Sales Order – Job Costing Non-Core Modules – Payroll – HRIS/HRMS – Time Keeping – Expense 7 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. In-house: Best of Breed 8 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. In-house Marketplace 100 90 80 70 60 50 Support 40 30 20 10 0 Basic 9 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. ERP ADP Tech. Disadvantages of Being In-house Software not a service Costly upgrades Purchase / Maintenance Fees Multiple islands of information Very labor intensive for administrative staff Stunts growth and opportunity 10 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Disadvantages of In-house “Microsoft says that the initial purchase is usually only 5% of the total cost of owning and maintaining a program.” - Wall Street Journal 11 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Outsourcing Access to world class capabilities Free resources for other purposes Improve company focus 12 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. ASO: ADP Resource 13 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. PEO: TotalSource HR Administration 401(k) Administration Risk Management and Safety HRMS Payroll and Tax Benefits Management Regulatory Compliance Recruiting and Selection Development Training 14 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Software as a Service Quicker implementation Low up-front costs Predictable ongoing costs No obsolescence Scalable Minimal IT infrastructure Disaster recovery Protection of confidential data 15 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. The ADP Advantage Customized Solutions Experts in Workforce Management World Class Customer Service 16 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information. Summary Different Processing Options Available to Companies Examples of Each Advantages and Disadvantages of Inhouse vs. Outsourcing Options 17 © Copyright 2011 ADP, Inc. Proprietary and Confidential Information.