After 40 years in business, ADP began the 1990s with more than 200,000 clients, nearly 20,000 associates, and annual revenue of $2 billion. In addition to payroll services, ADP was the leading provider of processing services to the retail auto and truck industry, and processed claims for most major casualty insurance companies.
The outsourcing trend ADP began in the 1950s gained widespread acceptance in the early ’90s. At the top of the list of outsourced functions were items such as payroll, human resource administration, and transaction processing services–which played to ADP’s strengths.
ADP continued to gain from the outsourcing trend not simply because we were here, but because we’re here with services that offer incremental value.
1995, ADP acquired the largest payroll and human resource services company in Europe — GSI, headquartered in Paris. The acquisition proved that ADP could succeed internationally, and led to the company becoming a powerful player in the global market.
I think it’s one of the most strategic acquisitions we’ve made, because it made us the biggest player in Europe. It also helped prove that we can take the ADP model — how our businesses make money — to Europe and other geographies in the future.
As ADP increased its global focus, technology and early adoption of the Internet helped the company serve clients virtually anywhere in the world.
In 1998, ADP.com launched, and provided clients and prospects with access to ADP’s services and expertise online.
As the millennium approached, and the Y2K computer glitch threatened, ADP was once again ahead of the curve. In 1998, ADP became the first company in its industry to successfully test its payroll process, end-to-end, with real clients and financial institutions in a Y2K environment.
In the late 1990s, ADP pursued a new business opportunity with small businesses, the Professional Employer Organization (PEO). A PEO provides an outsourcing solution that delivers human resource expertise and superior benefits packages, which most smaller businesses normally could not obtain by themselves.
In 1999, ADP completed its 50th year in business in record-breaking style, with 37,000 associates, 450,000 clients around the globe, and annual revenues in excess of $5 billion dollars.
As a company, we’ve had a knack of making a friend out of change, turning its uncertainty into opportunity. That’s a relationship I hope we’re able to renew for a very long time to come.