ADP 2006 Annual Report Download - page 15

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ES offers BPO-like solutions across all markets: TotalSource, our PEO (Professional Employer Organization), and
ADP ResourceSM, our ASO (Administrative Services Offering), for small to mid-size employers; COS
(Comprehensive Outsourcing Services) for larger employers; and GlobalView for multinational organizations.
PEO GROWTH AND THE ASO OPTION
ADP’s PEO, TotalSource – where ADP is a co-employer – includes a full range of outsourced payroll, tax and
benefits administration and HR support, including health and workers’ compensation coverage.
TotalSource continues to be one of ADP’s fastest growing businesses. Sales activity is robust and we serve
over 5,700 clients that represent 139,000 worksite employees. TotalSource is now the largest PEO in the
United States, when measured in terms of total worksite employees paid.
This year, TotalSource expanded into the large California PEO market. California’s small and mid-size busi-
nesses face many regulatory challenges that create strong demand for an employment administration and
compliance solution, making the state an excellent PEO growth market. Our relationship with leading
providers of health and welfare benefits in California adds to the attractiveness of our PEO offering for
employers who want to provide a full suite of HR services and benefits to attract and retain the best
employees.
ADP Resource, our ASO offering, is a natural outgrowth of the PEO business. Its distinguishing features are
the absence of co-employment and the use of the client’s own health and workers’ compensation coverage.
We expect ASO to appeal to an under-penetrated market of companies with 5 to 250 employees that value
outsourced HR/payroll services, but either do not want or cannot meet the underwriting requirements for
a PEO co-employment arrangement, or would prefer to retain their existing benefit structure.
COS SERVES AN EXPANDING CLIENT BASE
COS – our BPO solution for larger employers – enables employers to fully outsource payroll, time and labor
management, and HR, as well as payroll and HR administration. Like other BPO offerings that provide
added value, COS helps to deepen client relationships across multiple products, which we believe will lead
to higher client retention.
Launched in 2004, our COS solution now serves nearly 250,000 employees from a wide variety of busi-
nesses in the United States. COS has been well-received in the marketplace and has a healthy sales
pipeline. We have continued to add resources to support and build out the COS infrastructure to meet the
needs of this growing market.
OUR GROWING GLOBAL FOOTPRINT
ES continues to expand its international presence, serving multinational and local enterprises with payroll
and human resource information services. Between our best-of-breed local country and GlobalView offerings,
we provide solutions to clients in 31 countries throughout North and South America, Europe, and Asia.
GlobalView – which uses the mySAP™ 2004 ERP Human Capital Management software – is a unique offer-
ing in the marketplace, providing payroll, human resource management, and self-service solutions across
an international landscape, giving multinational clients access to their employees’ records through a single
database with robust reporting capabilities.
EMPLOYER SERVICES