ADP Remains a Payroll Powerhouse in the Face of Fierce Competition

ADP has invested heavily over the past decade to develop cloud native solutions and consolidate its portfolio of disparate platforms. ADP has successfully migrated its small and midsize clients to its strategic platforms and will be migrating enterprise and international clients to its new human capital management platform over the coming decade, as well as rolling out its new underlying payroll and tax engines. While we expect platform migrations to ultimately result in higher retention and profitability, the forced migrations will likely create a catalyst for enterprise clients to reassess providers, temporarily hindering both metrics.