Gartner publishes Payroll BPO magic quadrant; ADP in leader segment

Leading analyst and research organization, Gartner released their first ever Magic Quadrant report for payroll BPO services. According to the report, ADP, a leading outsourcing company specialized in providing human resource and payroll services are placed in the leader segment in payroll BPO.  The Gartner report evaluates the business capabilities and service delivery capabilities of 11 vendors of payroll business processing outsourcing services across the global market. This report helps the payroll BPO services buyer to evaluate and select the vendor that can best support their payroll processes.

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Till 2007, the HR outsourcing market grew at a rate of 25-30% each year and continued to grow at a single digit even in the recession years. It is now expected to grow at a rate of 16% for the next five years. From a recent survey it was found that about 94% of the respondents outsourced at least one of their HR process.  The survey also claimed that among the HR processes outsourced, payroll process outsourcing exceeded than any other processes like recruitment, staff learning and development etc.

ADP Inc. (Advanced Data Process) which is considered the leading HR outsourcing company offers human resource, payroll, tax and benefits administration solutions to the clients. They provide payroll services for large enterprises as well as small and medium enterprises.

They mange the online payroll processing and employee payroll tax filing which are often time consuming. By providing these services, ADP helps clients to focus on core business areas. ADP provides the flexibility to clients to choose the services according to their business needs. Clients can either purchase ADP’s payroll services separately or can avail the services from the single human resource package which includes HR services, payroll services and employee benefit services. According to the sources, the position of ADP as leaders in Magic Quadrant is a clear indication of their innovation, operational excellence, expertise and better client service in the area of payroll business processing outsourcing. The Gartner report without any doubt will benefit ADP in winning new outsourcing deals.

As per the Magic Quadrant report, more and more companies are planning to outsource their payroll processes to reduce HR costs and increase the service efficiency levels. Large companies having strategic units in different geographical locations are also outsourcing payroll process as a method to bring all the data on a common platform. This will help them to have all time access to data of all strategic units.

Gartner has reported that the payroll BPO services market will grow at a rate of 3.3% annually by 2015 and will attain a growth of 1.4% in the year 2012. As government sector and non profit organizations are also moving into HR outsourcing, payroll service providers are likely to witness a demand for their services.

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