Government | Education G OV E D HR/Payroll Service Delivery For The New Economy Executive Overview Presentation June 12, 2012.

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Presentation transcript:

Government | Education G OV E D HR/Payroll Service Delivery For The New Economy Executive Overview Presentation June 12, 2012

Government | Education G OV E D About ADP: Who We Are? Founded in 1949 Fortune of 4 AAA rated companies – S&P, Moodys 640,000 Organizations Worldwide 2,614 K-12 Systems Served 51,000 employees 1 out of every 5 Americans are serviced by ADP ADP moves over $1,000,000,000,000 Experience – Innovation – Best Practices - Sustainability 201 Regency Executive Park Drive Charlotte, NC Industries Served Global Companies Government & Education State Municipalities Counties Higher Education K-12 Public Healthcare Law Enforcement Agencies Utilities Federal Health Care Services Automotive Manufacturing Retail Financial Hospitality

Government | Education G OV E D 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.

Government | Education G OV E D ADPs Recruit – Retire Suite of Services © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Technology + Process + PeopleStandalone Services – Traditional Services – BPO Services

Government | Education G OV E D Government & Education Critical Themes Key Stakeholders HR Managers Finance Executives School Boards State Legislatures Budget Crisis Human Capital Crisis Doing More with Less Best Practices Costly ERP Upgrades Legacy Systems Compliance Issues / Concerns © Copyright 2012 ADP, Inc. Proprietary and Confidential Information

Government | Education G OV E D 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

Government | Education G OV E D Total Cost of Ownership Overview © Copyright 2012 ADP, Inc. Proprietary and Confidential Information 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

Government | Education G OV E D Total Cost Of Ownership Finding © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Payroll $507 PEPY Workforce Administration $354 PEPY Health & Welfare $221 PEPY Time & Attendance $321 PEPY In-House TCO $1,403 PEPY

Government | Education G OV E D Total Cost Of Ownership Finding © Copyright 2012 ADP, Inc. Proprietary and Confidential Information Payroll $436 PEPY Workforce Administration $101 PEPY Health & Welfare $174 PEPY Time & Attendance $134 PEPY Partnered Approach TCO $845 PEPY Payroll $507 PEPY Workforce Administration $354 PEPY Health & Welfare $221 PEPY Time & Attendance $321 PEPY In-House TCO $1,403 PEPY 40% Average Cost Reduction

Government | Education G OV E D So What? © Copyright 2012 ADP, Inc. Proprietary and Confidential Information

Government | Education G OV E D The Service Based Approach Risk Disaster Recovery Service Organization Core Competency Services People Software © Copyright 2012 ADP, Inc. Proprietary and Confidential Information

Government | Education G OV E D Summary © Copyright 2012 ADP, Inc. Proprietary and Confidential Information 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 Benefits of Partnering With A Service Provider