MAGIC QUADRANT FOR PAYROLL BPO SERVICES PDF

For the Fifth Consecutive Year ADP is positioned the highest in the Gartner Magic Quadrant for Payroll BPO the report for more. For the fifth consecutive year, Gartner has named ADP a “Leader” in their Magic Quadrant for Payroll BPO Services. Download your copy of the excerpt. G Magic Quadrant for Payroll BPO Services Published: 23 July Analyst(s): Morgan Yeates This Magic Quadrant evaluates the capabilities of 12 key.

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Morgan Yeates This Magic Quadrant evaluates the capabilities of 12 key providers of payroll business processing outsourcing services located around the globe. Buyers of payroll BPO services should use it to identify and assess those providers that can best support their payroll BPO needs. Payroll BPO service providers offer a broad array of services, including the following, which may be offered individually or bundled: The provider may give access to the employer’s employees and managers via a portal and mobile devices.

The predominant examples of payroll BPO service delivery options are: Fully outsourced or managed payroll services The provider takes responsibility for all payroll process steps; meets payroll-specific performance standards such payrool accuracy and turnaround time ; and provides the software, technological tools, staff and payroll expertise required magc complete the steps, while giving the client access to the data through online tools and reports.

In this option, the client may eliminate most of its internal payroll staff, as the provider’s staff would perform almost all payroll functions. Also, the provider may utilize its own, the client’s, or a third party’s software and other technological tools for the provisioning of its services, which may be hosted on either the provider’s or the client’s data center and maintained by that party.

Contracts are normally structured using a menu approach, having a combination of pertransaction, per-activity and flat-rate pricing.

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Psyroll outsourced payroll services The provider takes responsibility ffor only some payroll process steps and must meet performance standards specific to those steps; the client retains responsibility for both the remaining process steps and the integration of qadrant and insourced steps. Also, sometimes partially outsourced payroll services are utilized when some aspects of the services are mandated by legislation, as in China where government-sanctioned entities must be used to make payroll payments.

Contracts are normally structured using a menu approach, having a combination of per-transaction, per-activity and flat-rate pricing. Page 2 of 37 Gartner, Inc. The provider is also responsible for at least some, if not most, of the payrol process steps and meets sergices performance standards that is, not merely standards for application availability and uptime.

Services are one-to-many using shared resources and are usually priced on a transactional basis such as per-paycheck or per-pay-period. In this Magic Quadrant, we evaluate providers that offer one or more of the above service options, that are headquartered in a variety of countries, and whose service delivery footprint varies from two countries to over countries.

A provider’s position in the Magic Quadrant graphic is generally determined by Gartner’s ratings regarding its ability to execute and its completeness of vision. These two broad categories are divided into a total of 15 factors including such factors as scope of delivery, quality pqyroll services, marketing and sales execution, and several others.

While the 13 providers profiled here are somewhat dissimilar on the surface, Gartner’s Magic Quadrant provides standardized and consistent ratings so that payroll BPO buyers can compare providers objectively and npo. G Page 3 of The company has a range of payroll solutions for every organization profile: ADP offers services on a bureau basis as well as on BPaaS, managed, and comprehensive outsourced bases.

The company utilizes domestic solutions in 20 countries and multinational solutions in more than 80 countries; it also offers SaaS solutions. It supports some of the largest companies and government organizations in the world. Strengths Strong global operations.

At the same time, ADP has demonstrated that it can manage very large clients, with some having overemployees; and it can manage very complex payroll environments for single-country and multicountry clients.

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Payroll cloud, Payroll, Payroll System Singapore – Gartner

ADP has payroll solutions for every organization profile: Additionally, the company can help a client migrate from one type of offering to another as the client’s needs or size change. In addition to payroll, ADP offers HR BPO services in the areas of time and labor management, health and welfare benefits plans, talent management, recruitment, learning and training, and tax and compliance, among others.

This breadth of scope allows bundling and attractive pricing for buyers looking for more than payroll. Significant investment in technological and payroll domain innovation. Its mobile solutions are used by more than 2. It has expanded its Innovation Lab, which focuses on payroll system user experience, and has launched ADP Analytics, which focuses on building tools for gleaning insights from employee data. ADP’s Business Process Improvement initiative focuses on optimizing end-to-end operational procedures and technology to reduce payroll administration costs.

Continuous investments in human capital management HCM research. Its Global Benchmarking Study presents findings on outsourcing practices, emerging trends and innovation. ADP also conducts research in related areas, such as payroll total cost of ownership TCOemployment and HCM trends, benefits programs and administration, workforce strategy, and automation in the payroll process. Cautions Speed of integration among offerings. G Page 5 of However, this is not happening fast enough for some clients considering such migration, although most of them understand that ADP will indeed be working to improve this integration for several years.

Additionally, ADP’s various offerings overlap market segments such as by size of company and by countrycausing some confusion in the market.

Internal distraction impairs client focus. This is especially true regarding the need for local-country expertise. ADP may need to change its delivery structure to better satisfy what existing clients see as their routine delivery needs.

Some clients cite ADP for being too hesitant to build a true partnership with them. ADP lacks the give-and-take between partners, is too quick to place blame instead of focusing on a solution, spends little effort sharing lessons learned and best practices among clients, and is sometimes too slow to escalate internally a recurring service delivery problem. Aon Hewitt offers managed payroll and related services in the U.

Strengths Balanced distribution of clients and revenue across client size. Aon Hewitt processes payroll for over clients and their 2 million employees, located in seven countries.

The company’s clients range in size from 50 employees to overemployees. In addition to payroll, Aon Hewitt offers BPO services in the areas of talent acquisition and recruitment, pension and defined contribution retirement plans, and health and welfare plans, among other HR areas.

Magic Quadrant for Payroll BPO Services

Since its cor, the former Hewitt Associates has been known for the breadth, depth and creativity of its HR consulting services. The company offers payroll BPO buyers comprehensive services in HR strategy, program design and implementation, administration, and compliance. Cautions Limited geographic service footprint. In the growing and highly competitive market for payroll services whether on a stand-alone basis or Page 6 of 37 Gartner, Inc.

Until recently, Aon Hewitt offered only limited analytics capabilities, with most of it consisting of basic metrics and transaction reporting and no predictive analytics. The company has been, to some degree, relying on providers of the underlying ERP platforms it supports to invest in analytics tools.

Its recent partnership with Visier may resolve this deficiency. Visier’s tool enables clients to integrate workforce metrics from multiple sources and then perform analytics across the dataset, with a goal of predicting how certain workforce behaviors within an organization will change over time.

These tools, combined with Aon Hewitt’s HR transformation consulting capabilities, could allow Aon Hewitt to leapfrog ahead of some competitors in this service. Aon Hewitt is behind its competitors regarding technology investments and tools. Its Viewpoint employee portal is indeed flexible enough to interface with all the ERP solutions upon which Aon Hewitt bases its services, and investment continues in myhr, UPoint and CompLink, its employee and manager interface tools.

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Beyond these, the company is waiting on Workday to develop mobile apps and social media tools. The company offers payroll services on BPaaS, managed-payroll, and fully outsourced bases as well as on a SaaS basis.

Magic Quadrant for Payroll BPO Services

It processes payroll for 55, clients and their clients’ 25 million employees, and in conjunction with its partners, it offers services in nearly 70 countries in 15 languages. Ceridian has payroll solutions for every organization profile.

Freedom and Canada Powerpay. Ceridian also offers BPO services in other HR areas, including benefits administration, workforce management, talent management, payroll tax filing services, and pension autoenrollment in the U. Solutions for all sizes of clients. Ceridian serves clients that range in size from fewer than employees up to as many asemployees.

Roughly half of its clients have fewer than 2, employees, and half have more than that.

G Page 7 of SinceCeridian has been developing globally standard general ledger and payroll data interfaces. Its business intelligence and data analytics are embedded in its Dayforce platform and available on a real-time basis. All its mobile apps have been built specifically for mobile access, and it is pursuing business collaboration capability through social networks. As they did last year, reference clients cite Ceridian’s partnership approach to the relationship, ability to handle complex payroll management situations, and responsiveness when a problem needs a solution quickly.

Clients additionally cite the strong capabilities of Ceridian’s sales staff and its application of best practices in their payroll environment.

Cautions Limited usage of the primary platform. Ceridian must accelerate this product’s dominance within the company’s existing client portfolio as much as it does with prospective buyers in order to compete successfully. Narrow service delivery footprint. Also, its service delivery centers are only in five countries. Yet its competitors have “put down roots” and are growing organically in the very areas on which Ceridian is focusing: Reference clients want to see Ceridian provide more flexibility in defining solutions to specific client needs and prioritizing modifications.

Some clients feel Ceridian may be too rigid or perhaps too constrained by scarce resources to allow for variances when solutioning for example, it should put small fixes ahead of larger, time-consuming fixes, or resolve multiple issues concurrently rather than linearly.

Limited payroll consulting services. Ceridian is still trailing its competitors regarding payroll consulting services. Payroll BPO clients worldwide increasingly seek consulting assistance including pre- and postsale regarding payroll administration strategy, guidance on payroll and HR information system [HRIS] technology, and assistance with process redesign, and they are looking to BPO service providers for this assistance.

CGI has 1, employees in its payroll service organization, located mostly in Canada, Sweden and the U. The company provides services to large clients, primarily out of the U. Its largest client has over 40, employees. In total, CGI serves 3. Strengths Success with the traditional aggregator model.

The large-client service group within CGI partners with local providers and sometimes global competitors while retaining management of the delivery components in order to present one “face” to the client. The model brings clients expanded coverage and the combined skills of CGI and its partners. It supports these improvements with its payroll support call center, which takes approximatelycalls annually.

Expertise in complex environments. CGI is recognized by its large clients for strength in managing complex payroll environments, especially those involving unions and complicated benefits structures. High level of performance and client satisfaction.

Larger reference clients cite the company’s stellar performance in meeting SLAs over a long history, high degree of professionalism, understanding of clients’ business, and partnering with clients when making major changes.

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