ADP to Provide Complete One-Stop HR Outsourcing Solutions

Business Wire, Sept 23, 1997

ROSELAND, N.J.--(BUSINESS WIRE)--Sept. 23, 1997--

Employer Services President Gary Butler tells

HRMS/Expo audience ADP will deliver

best-of-breed services for all administrative tasks

Automatic Data Processing, Inc. (ADP)(R) will soon provide one-stop shopping for complete outsourcing services in human resources, benefits, and payroll, ADP Employer Services President Gary Butler told senior HR executives attending the fifth annual HRMS/Expo'97.

Butler told the audience at New York's Jacob Javits Center that ADP is integrating the company's recent acquisitions -- including the benefits outsourcing business of Health Benefits America and a recently acquired employee leasing firm -- into ADP's existing products and services to provide seamless, best-of-breed solutions for the administrative and transactional work currently burdening HR departments.

"HR should continue handling their value-added strategic tasks," Butler said, "while we reliably handle all the administrative transactions for them, just as we have in payroll for over 48 years." Butler explained ADP's strategic directions during a panel called "Outsouring/Insourcing/ Shared Services" in response to a question by moderator and conference director William M. Kutik of "Human Resource Executive" as to when a single company would offer a complete outsoured HR department.

The panel also included partners of Ernst & Young and The Research Board. Other presenters at the information technology conference included the presidents of PeopleSoft and SAP America and technology visionary Esther Dyson.

"ADP recognized the trend to HR outsourcing early on," Butler responded to a question on the changes in benefits outsourcing, "and the current situation with benefits consulting firms is similar to our experience with banks. Many banks used to process payroll until they realized it wasn't a strategic service for them. When banks put their resources to other strategic use, their clients were better served."

"ADP now processes those payrolls and provides complementary services to those clients," he continued. "Benefits outsourcing and HR administration services are also strategic to ADP, and we will make the on-going technology investments to deliver world-class products and services in this arena."

On the future of global payroll outsourcing, Butler commented that ADP was already the largest provider in Europe and has now expanded there through a new strategic alliance with PeopleSoft. ADP is also making plans to expand in South America from a solid base in Brazil.

About ADP

ADP (NYSE: AUD), with more than $4 billion in annual revenues and more than 400,000 clients, is one of the largest independent computing services firms in the world. Founded in 1949, ADP provides computerized transaction processing, data communications, software, and information services in virtually every industry. ADP Employer Services is the world's largest provider of payroll services and human resource information systems (HRIS). It offers a comprehensive range of benefits, payroll and business tax deposit and reporting, time and attendance, 401(k) record keeping and unemployment compensation management services.

In addition, ADP provides market data, securities transaction processing and investor communications services to the brokerage and financial communities, industry-specific computing and consulting services to auto and truck dealers and computerized automated auto repair estimating and auto parts availability services to the auto repair industry.

CONTACT: Automatic Data Processing, Inc.

Linda Strauss, 973/994-5963

linda_strauss@es.adp.com

or

Ogilvy Adams & Rinehart

Mike Klein, 212/880-5332

michael.klein@oar-ny.com