ROSELAND, N.J., March 28, 2012 /PRNewswire/ -- ADP®, a leading
provider of business process outsourcing, payroll services,
benefits administration and integrated computing solutions
for vehicle dealers, today announced the findings of a study
conducted by Sourcing Analytics, Inc., titled: The Hidden
Benefits of Human Resource Business Process Outsourcing.
According to the study, outsourcing to ADP in a Business Process
Outsourcing (BPO) model not only lowers a client's cost of payroll
administration, but by driving change throughout the organization,
also reduces the overall costs of Human Resource (HR) transactional
processing, management and time and attendance reporting by as much
as 40 percent.
Sourcing Analytics, Inc. surveyed ADP's largest US-based HR BPO
clients (each respondent with over 1000 employees) on their
experiences in outsourcing business processes including payroll,
time and attendance, workforce administration, and health and
welfare benefits administration to ADP. Among the key findings:
- ADP clients that utilize services beyond payroll in an HR BPO
model (such as managed time and attendance, hosted Human Resources
Information System and health and welfare benefits administration)
can experience Total Cost of Ownership (TCO) savings of up to 40
percent versus in-house administration.
- Outsourcing payroll to ADP in the HR BPO model provides a lower
average TCO of payroll than in-house processing.
- ADP's BPO model of payroll outsourcing provides the hidden
benefit of reducing costs in the related areas of time and
attendance and workforce administration.
- The longer a client has utilized ADP services, the lower the
average TCO.
- ADP clients that have made internal changes to optimize the
opportunities provided by outsourcing also experience the lowest
average costs.
The study concluded that organizations using in-house,
premise-based or hosted software solutions spend an average of 51
percent more on administering payroll, workforce administration,
time and attendance, and health and welfare benefits than
organizations that outsource those services to ADP.
"What this study shows is that in addition to the significant
benefits of outsourcing payroll, outsourcing broader HR functions
enables large organizations to achieve additional hidden benefits
as change is driven throughout the organization," said Donald Glade, President, Sourcing Analytics,
Inc. "Costs of key processes, such as workforce
administration, time and attendance, and health and welfare
administration can be driven down as a result of the HR BPO
model. Companies evaluating BPO for payroll must consider
that many benefits are experienced beyond the confines of the
payroll department, with cost savings and benefits of potentially
enormous magnitude."
"HR BPO buyers need help managing the changes associated with
implementing a new outsourcing solution, because it is critical to
long term success," adds Jack
Cassetori, Senior Vice President and General Manager, ADP
Comprehensive Outsourcing Services. "ADP provides change
management services for its HR BPO clients throughout the solution
implementation, and uses quantifiable tools to measure quality and
effectiveness. Likewise, our Continuous Improvement program enables
buyers to continually evaluate their people, processes, and
technologies to help ensure HR BPO optimization and identify future
opportunities for efficiencies."
Study Methodology
The Hidden Benefits of Human Resource Business Process
Outsourcing is a primary research study sponsored by ADP, but
conducted and prepared by Sourcing Analytics, Inc. The study
is based on data collected from large organizations (each
respondent having 1,000 or more employees) utilizing ADP's HR BPO
services. Of the ADP clients that participated:
- 29% were "all-service" ADP clients, meaning they outsourced
payroll, time and attendance, workforce administration, and health
and welfare benefits administration to ADP;
- 67% utilized ADP time and attendance services;
- 42% used an ADP-hosted system as their HR system of record;
and
- 38% outsourced their benefits administration to ADP.
The size of the ADP client companies that participated in the
study are as follows:
- 10,000+ employees (25%)
- 5,000 to 9,999 employees (37%)
- 2,500 to 4,999 employees (17%)
- 1,000 to 2,499 employees (21%).
To download a complimentary copy of The Hidden Benefits of
Human Resource Business Process Outsourcing study, please
visit:
http://www.sourcinganalytics.com/resources_hiddenbenefit.php
For more information about Human Resources BPO Services from
ADP, please visit: http://www.adp.com/hr-bpo.
About ADP
Automatic Data Processing, Inc. (NASDAQ: ADP), with about
$10 billion in revenues and
approximately 570,000 clients, is one of the world's largest
providers of business outsourcing solutions. Leveraging over
60 years of experience, ADP offers a wide range of human resource,
payroll, tax and benefits administration solutions from a single
source. ADP's easy-to-use solutions for employers provide
superior value to companies of all types and sizes. ADP is
also a leading provider of integrated computing solutions to auto,
truck, motorcycle, marine, recreational vehicle, and heavy
equipment dealers throughout the world. For more
information about ADP or to contact a local ADP sales office, reach
us at 1.800.225.5237 or visit the company's Web site at
http://www.adp.com.
For more information, contact:
Jim Larkin
ADP
(973) 407-9714
Jim_Larkin@adp.com
SOURCE Automatic Data Processing, Inc.