Payroll Comapnies

Now lets talk about some of the main competitors for ADP. The two largest competitors are Paychex and Ceridian. The largest chunk of ADP and these two competitors revenue is the payroll processing and human resource service. Lets go through the two competitors to see where they stand out and where ADP needs to make some adjustments.

Ceridian Corp

1. Human Resource Solutions

Ceridian is a leader in managed business solutions for human resource and employee effectiveness services to employers of all sizes in the United States, Canada and Europe. In the U.S. Ceridian serves more than 20 million employees, or 18 percent of the workforce. Ceridian Canada serves over 17 percent or about 2.6 million employees; and in the United Kingdom Ceridian Centrefile serves about 7 percent of the workforce. Ceridian enables companies to succeed in their core business through its suite of innovative managed business solutions for HRMS, payroll, tax filing, application outsourcing, time and labor management, benefits administration, employee effectiveness services, benefits enrollment, COBRA and 401(k) administration. The Source 500 HR information system and follow-on integrated web-enabled solution, eSource, give Ceridian's customers truly integrated payroll and human resource solutions. Ceridian serves smaller businesses with a fast, friendly, Internet-based human resource solution called Ceridian Small Business Solutions.

2. Comdata

This part of Ceridian is the number one supplier of electronic cash card and related services to the over-the-road trucking industry. Comdata's proprietary credit and debit card is a multi-service card, which allows payment for a range of personal and company related expenditures through a single card. Comdata serves over one million truckers in the United States with its proprietary card for over-the-road truck carriers and with a co-branded Comdata MasterCard® for local fleets. This is the credit card of choice for large local fleet operators including Pepsico, SYSCO and Frito Lay. Comdata is also a leading provider of retail gift, cash and stored value chip cards. In 2003 Comdata shipped more than 250 million cash cards to retailers, grocery and restaurant chains, and entertainment companies. Retailers including The Gap, Lowe's, Applebee's, Safeway, J.C. Penney and Kroger take advantage of Comdata's stored value card services.

Paychex

Paychex, Inc. today is a recognized leader in the payroll and human resource services industry. But even as the company's array of products and services grows, the Paychex commitment to its customers remains as strong as it was when B. Thomas Golisano founded the company 33 years ago.

Paychex is a top national provider of payroll, human resource, and benefits outsourcing solutions for businesses in the U.S. Paychex's core client is the small- to medium-sized company, but Paychex also meets the special needs of larger businesses with its Major Market Services.

In 2004, Paychex reached a client base of 505,000. It also announces the acquisition of Stromberg, a market leader in time and attendance software solutions for mid- to large-sized businesses. Stromberg's suite of labor management products includes time and attendance, employee self-serve, scheduling, and more. This acquisition follows Paychex's purchase in October 2003 of Stromberg's Time In A Box time and attendance product for small- to medium-sized businesses.

Ceridian and Paychex are both expanding. The number of clientele is increasing, they are now able to compete

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