HR/Payroll Service Delivery For The New Economy
Executive Overview Presentation
June 12, 2012
GOVE| Education
D
Government
About ADP: Who We Are?
Industries Served
• Global Companies
• Government & Education
 State
201 Regency Executive Park Drive
Charlotte, NC 28217
 Municipalities
Counties
 Higher Education
 K-12
• Founded in 1949
 Public Healthcare
• Fortune 200
 Agencies
• 1 of 4 AAA rated companies – S&P, Moody’s
• 640,000 Organizations Worldwide
• 2,614 K-12 Systems Served
 Law Enforcement
 Utilities
Federal
•Health Care
•Services
• 51,000 employees
• Automotive
• 1 out of every 5 Americans are serviced by ADP
• Manufacturing
• ADP moves over $1,000,000,000,000
• Retail
• Financial
• Hospitality
Experience – Innovation – Best Practices - Sustainability
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What we do – Hosted (Cloud) Services
 We are ADP, not an outsourced or partnered service
 Data stays with one partner
 Single point of contact
 We are an Application Service Provider (ADP)
 Not a co-location, Web or managed hosting provider
 We only host ADP products
 Highly transactional and complex applications
 We are arguably the most successful ASP
 We service approximately 155,000 clients
 300+ Associates dedicated to Hosting Services
 We offer a predictable, reliable and scalable solution
 You only pay for what you use
 We provide independent assessments of our offerings
 Over 20 SAS 70 Type II reports which include effectiveness tests of hosting controls.
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ADP’s Recruit – Retire Suite of Services
Technology + Process + People
Standalone Services – Traditional Services – BPO Services
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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Government & Education Critical Themes
Budget Crisis
Compliance
Issues /
Concerns
Human
Capital Crisis
Key Stakeholders
HR Managers
Finance Executives
School Boards
Legacy
Systems
Doing More
with Less
State Legislatures
Costly ERP
Upgrades
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
Best
Practices
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Total Cost of Ownership Overview
PwC Methodology
• Total Cost of Ownership (TCO) of
four core business functions
• Payroll (PR)
• Workforce Administration (WA)
• Time & Attendance (TA)
• Health & Welfare Administration
(H&W)
• Factors impacting core business
function costs
• Update on original studies, in light
of significant market changes in the
delivery, technology, and scope of
HR systems since 2003
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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Total Cost of Ownership Overview
Technology Costs
• System Installation Cost
• System Upgrade Costs
• System Maintenance Costs
Process Costs
• Outsourcing Costs
People Costs
• Direct Labor Costs
• Direct Non-Labor Costs
• Indirect Labor Costs
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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Total Cost Of Ownership Finding
Payroll
$507 PEPY
Workforce
Administration
$354 PEPY
In-House TCO
$1,403 PEPY
Health &
Welfare
$221 PEPY
Time &
Attendance
$321 PEPY
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
Government | Education
GOVED
Total Cost Of Ownership Finding
Payroll
$507 PEPY
Workforce
Administration
$354 PEPY
In-House TCO
$1,403 PEPY
Health & Welfare
$221 PEPY
Time & Attendance
$321 PEPY
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
Payroll
$436 PEPY
40% Average Cost
Reduction
Workforce
Administration
$101 PEPY
Partnered
Approach TCO
$845 PEPY
Health & Welfare
$174 PEPY
Time &
Attendance
$134 PEPY
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So What?
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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The Service Based Approach
Risk
People
Services
Software
Disaster Recovery
Service Organization
Core Competency
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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Summary
Benefits of Partnering With A Service Provider
Lowers Financial Risk
• Decrease TCO
• Variable Cost Model
Lowers Technology Risk
• No Fear Of Obsolescence
• Proven Technology
• Single Vendor Management
• Tier 4 Data Centers
• Proven Disaster Plans through 9/11 & Hurricane Katrina
Lowers Compliance Risk
• Portion Of Risk Shifted To Service Provider
• Stable Vendor – AAA Credit Rating
• Easily Integrate Additional Organizations and Services
• Automated Compliance Services
© Copyright 2012 ADP, Inc. Proprietary and Confidential Information
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