ADP 2006 Annual Report Download - page 16

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Understanding the added value that knowledgeable and fluent local support personnel bring to our growing
international business, we have opened dedicated regional service centers in Prague (Czech Republic), Halifax
(Canada), and Hyderabad (India). These are in addition to our live hosting centers in Australia, France,
and Canada.
This year, we opened two representative offices in China, the largest developing market in the world, in the cities
of Shanghai and Beijing. Through our Shanghai facility, we support global and multinational firms that have
employees in China on our GlobalView solution.
ALLIANCES
Alliances are another important way to expand our distribution model. By partnering with other market-leading
companies whose offerings complement ours, we reach out in a cost-effective manner more broadly and deeply into
our markets, connecting with businesses that we would not normally reach.
In the small business payroll segment, we “wholesale” ADP services to CPAs, who input and process their clients’
payrolls using our applications, services, and back-end infrastructure. We also provide these accountants with the
ability to print checks and reports from their office or have ADP deliver the payroll directly to their clients, while the
accountants maintain direct contact with their clients.
SMARTSHORE AND OFFSHORE INITIATIVES
Future success depends on our ability to remain competitive in the marketplace. That recognition has led us to cre-
ate a new generation of service hubs: smartshore and offshore facilities that are designed to deliver World Class
Service, and concurrently improve productivity and margins by leveraging the advantages of low-cost geographies,
economies of scale, and best practices.
Smartshore centers – we recently created a centralized service environment that helps to improve the overall
client experience. Our newly operational facility in El Paso, Texas, is an example of this centralized service
strategy, which is an important part of our long-term investment in World Class Service and will help us to improve
our competitive position.
Offshore centers – we enhance our global competitiveness by serving clients across multiple time zones through
service facilities such as our office in Hyderabad, India, which provides IT support services to clients globally for all
ADP businesses.
Offshoring and smartshoring certain non-client-facing functions help to accelerate time to market.
SUBSTANTIAL MARKET OPPORTUNITY REMAINS
As ADP’s oldest business with more than 55 years of experience serving the needs of employers, ES still enjoys a
wide array of new growth opportunities. Consider this sampling:
> we pay 1-in-6 workers in the U.S. private sector;
> the HR BPO opportunity, which remains under-penetrated in all market segments, has a multi-billion dollar
potential in the U.S. market and abroad;
> we pay a very small percentage of all employees in the international markets we serve; and
> cross-selling of our beyond payroll products into our traditional payroll/payroll tax filing base continues to offer a
significant opportunity.
EMPLOYER SERVICES