Automatic Data Processing

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Automatic Data Processing, Inc.
Type Public (NYSE: ADP)
Founded Paterson, New Jersey, USA (1949)
Headquarters Roseland, New Jersey, USA
Key people Gary C. Butler, President & CEO
Arthur F. Weinbach, Chairman
S. Michael Martone, COO
Christopher R. Reidy, CFO[1]
Industry Business Process Outsourcing
Revenue ▲ US $7 billion USD (2006) [1]
Net income ▲ US $1.07 billion (2006)[2]
Employees 42,000 (2006)
Website www.adp.com

Automatic Data Processing, Inc. (NYSE: ADP) ADP, is a global provider of integrated computing, and business outsourcing solutions for auto, truck, motorcycle, marine and recreational vehicle dealers. ADP has nearly $8 billion in revenues[2] and approximately 585,000 clients[3]. ADP offers a range of HR, payroll, tax and benefits administration solutions.

Contents

[edit] History

ADP was founded in 1949 by Henry Taub in Paterson, New Jersey as Automatic Payrolls, Inc. The first ADP office, above Grinker’s Ice Cream shop, processed payroll manually with a bookkeeping machine, addressograph equipment, calculators and comptometers. The company's first full-time salesman was future U.S. Senator Frank Lautenberg.[4] The company’s first account was New Era Dye and Finishing in Fair Lawn, New Jersey. With the introduction of punch card machines, mainframe computers and check printing machines, Automatic Payrolls became Automatic Data Processing in 1958.[5]

ADP became a public company in 1961, with an initial stock price of $3. In the next year, Brokerage Services division was developed to serve the high volume transaction needs of major stock brokerages on Wall Street. The company proceeded to offer Dealer Services to automotive dealers to handle inventory and accounting transactions. In 1974, ADP extended into the international market with an office in The Netherlands, and later in the decade added Claims Services.[6]

Today ADP employs more than 42,000 associates globally providing business solutions for more than 570,000 companies of all sizes – small, mid-market and enterprise.

ADP is one of the world's largest providers of business outsourcing solutions, with operations in many countries.

[edit] Business Units

[edit] Globalview

This newest division, ADP GlobalView powers the global human resources strategy of multinational employers delivering a proven single-source human resources outsourcing solution to manage complex risk and compliance worldwide. Receiving multilingual, multicurrency service on a single shared platform, clients can apply common payroll and human resources policies, view consolidated reports, and tap the knowledge of resident experts at service centers in all three regions of the globe. The division's operations are in 3 locations: France (Europe), Australia (Asia/Pacific), Canada (Americas).

[edit] Employer Services

An ADP Model 4500 timecard reader
An ADP Model 4500 timecard reader

The Employer Services business unit is the oldest, largest and most profitable of ADP's divisions. It includes payroll processing, HR outsourcing, 401(k)/Retirement Services, Insurance Services, Professional Employer Organization (PEO), Time and Labor Management, Tax and Compliance Management, Benefits Administration, Screening and Selection Services, and Administrative Service Offerings (ASO). ADP's payroll services are so widespread that one in six Americans working in the private sector have their paychecks processed by the company. [7]

[edit] Dealer Services

In 1972, Dealer Services was created for automobile dealer front end management, business office, parts and service departments. ADP maintains three lines of DMS solutions ( ARG, w.e.b.Suite, and Elite), which are offered via on-site distributed model or in a hosted ASP Managed Service model. Additional products include CRM, Network services, OEM integration, IP-Telephony and Web marketing solutions. The Dealer Services division of ADP has $1.3B in annualized revenues and provides computing solutions to over 25,000 automotive retailers in 41 countries.

[edit] Claims Services

ADP's Claims Services was created to assist insurance companies with property and casualty claims, automotive recycling, and collision repair in 1979. This division was sold off because its growth potential was far less than the other divisions of the company.

[edit] Brokerage Services

This division of ADP was created in 1962 to service stock brokerages. Oppenheimer & Co. became the first client, averaging 300 trades per day. By 1999, ADP was processing over a million trades in a day. This business was spun off in 2007 into a company called Broadridge Financial Solutions (NYSE: BR), removing about $2 billion from ADP's total yearly revenue.[8]

[edit] Recognitions

  • In 2003, 2004 and 2005 ADP is one of the top 10 companies in North America AAA rated by both S&P and Moody's [9][10][11]
  • In 2006 ADP ranked #2 on InformationWeek 500's top 250 Innovators [12]
  • In 2008 ADP was named to the Training Top 125 List by Training magazine. ADP ranked 20th and was one of only five first-time entrants that made it into the top 50 on the 2008 list.[13]

[edit] BZ Results

BZ Results (Automotive Dealer Services), winner of the 2006 “Innovative Company of the Year”, [14][15] was purchased by ADP in 2006.[16] At the time, BZ Results was valued at $125 million.

[edit] References

  1. ^ ADP Directors and Corporate Officers
  2. ^ Automatic Data Processing (ADP) 2007 Summary Annual Report (pg. 3)
  3. ^ Automatic Data Processing (ADP) 2007 Summary Annual Report (pg. 1)
  4. ^ ADP Investor Relations--50 Year History, 1949-1999
  5. ^ Jeffrey R. Yost (2005). The Computer Industry. Greenwood Press. ISBN 0313328447. 
  6. ^ Edward J. Kanarkowski (1999). ADP 50th Anniversary Book. ADP. 
  7. ^ College Savings Boosted by ADP's 529 Payroll Deduction Program
  8. ^ ADP Completes Spin-off of Brokerage Services Group Business
  9. ^ Automatic Data Processing (ADP) 2003 Summary Annual Report (pg. 6)
  10. ^ Automatic Data Processing (ADP) 2004 Summary Annual Report (pg. 14)
  11. ^ Automatic Data Processing (ADP) 2005 Summary Annual Report (pg. 6)
  12. ^ InformationWeek 500: Top 250 Innovators (pdf) (2006-09-11). Retrieved on 2007-09-22.
  13. ^ Training Top 125: 2008 (pdf) (2008-02-06). Retrieved on 2008-02-18.
  14. ^ Sean Wolfington. AutoSuccess Magazine. Retrieved March 6, 2007.
  15. ^ Auto Success magazine (pg. 8-10).
  16. ^ Cliff Banks (April 1, 2006). ADP Bolsters Website Efforts By Buying BZ. WardsAuto.com. Retrieved on 2006-12-26.

[edit] External links

Employer Services:

Automotive Dealer Services:

Languages