ADP and SAP

I've watched a bit of the US sapphire via SAP TV. you can do the same if you register at sap.com.

So far, the most interesting bit was the ADP cameo in Leo's keynote. check it out. ADP's CEO elect, Gary Butler posed the question "why are SAP and ADP working together?"   dont they compete in the HR space?  

 Well, the answer is the offering GlobalView. This combines SAP's HCM and CRM solutions with ADP service delivery. good stuff. This isnt just an announcement about future plans to work together. ADP have invested over 50 million dollars setting up the architecture and getting templates etc in order, and will invest another 50 million over the next two years to expand the service to more than 50 countries.

The payment model is novel, as you only pay when you go live. Also they have 50 major mulitnationals signed upto to this already, with over 500 000 employees! (Microsoft, AHOLD, NCR, CISCO, Unisys, Celestica, EMC….)   

The model works for the customer, they pay for a service when it goes live and as they consume it. ADP can focus on service, not trying to build software. It works for SAP, as the customer is on an SAP platform, and we have a new revenue stream.  It wasnt easy putting this deal together, and both ADP and SAP had to change a lot of internal doubters to drive it through. Our BPO team have done a great job in aligning the goto market and our sales organisation too (there is even a BPO safe passage option).  The guy who ran the  SAP EMEA HR business, Phillip Booth, is driving the relationship from the SAP side. ADP are really scaling up on this too.

Does this shake up the BPO space. You bet.  Hewitt is the odd one out still clinging to the venerable Cyborg. ACS, Convergys, Arinso are all in the SAP boat. I think this shows a lot of HR thought leadership from SAP. 

BPO is here to stay. SAP gets it. What is Oracle's BPO story? Anyone? I'd be interested to see what the other HR tech and BPO bloggers have to say on this one, Dubs, Human Capitalist, Vinnie…..?  

4 thoughts on “ADP and SAP

  1. As many have been saying, SAP is the clear winner in the HRO world. Oracle/PS are receding, but this is almost certainly temporary as buyers wait for Fusion – even if only to see if it’s viable.

    ADP has always been smart with their large employer HRMS strategy. ADP Enterprise is built on PeopleSoft source code. Now, their next generation is being built on the SAP platform.

    However, I feel a migration away from ERP based HRMS systems. Oracle and SAP will keep the core, but point solutions are again emerging with both SaaS and SOA becoming more vialbe and growing in acceptance.

    Thomas: I pose a question back – can SAP realistically keep up with the point solutions, or will NetWeaver partnerships be expected to fill the gap?

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