Wednesday, November 16, 2005

Is ADP HRO #2 in the industry?

A recent ADP press release had a few interesting new facts.

Apparently, 32 multi-national corporations have signed on for ADP's HRO platform based on SAP. This is far more than I thought it would be, and in addition to ADP's standard platform (ADP Enterprise) for U.S. domestic populations, I think this easily puts ADP in the #2 spot for total sales.

One other note was that these 32 companies provided service for 190,000 employees. This fits in with what we know about ADP HRO being a mid-market solution. If you average it out, we're talking about 6,000 employees per company. These might be $20-100M contracts, but nowhere near the $300M to $1B contracts that Accenture, IBM and Hewitt are after (over 7 years). So number 2 in volume of sales certainly does not equate to revenue in this case.