®

Everest Group PEAK Matrix™ for RPO in North America

Service Providers 2019

Focus on ADP RPO

July 2019

Copyright © 2019 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by ADP RPO

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Introduction and scope

Everest Group recently released its report titled “Recruitment Process Outsourcing (RPO) in North America – Service Provider
Landscape with Services PEAK Matrix™ Assessment 2019.” This report analyzes the changing dynamics of the RPO landscape
in North America and assesses service providers across several key dimensions.

As a part of this report, Everest Group updated its classification of 30 service providers on the Everest Group PEAK Matrix™ for
RPO in North America into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides an
objective, data-driven, and comparative assessment of RPO service providers in North America based on their absolute market
success and delivery capability.

Based on the analysis, ADP RPO emerged as a Leader. This document focuses on ADP RPO’s experience and capabilities in
North America and includes:
⚫ ADP RPO’s position on the RPO in North America PEAK Matrix
⚫ ADP RPO’s year-on-year movement on the RPO in North America PEAK Matrix
⚫ Detailed RPO in North America profile of ADP RPO

Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service
providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point,
the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique
situation and requirements, and match them against service provider capability for an ideal fit.

Source: Everest Group (2019) unless cited otherwise

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Everest Group PEAK Matrix™
®

RPO in North America with Services PEAK Matrix™ Assessment 2019 | ™

ADP RPO positioned as Leader

Everest Group Recruitment Process Outsourcing (RPO) in North America with Services PEAK Matrix™ Assessment 2019

High
Leaders Leaders
Randstad Sourceright
Major Contenders Major Contenders
PeopleScout
ManpowerGroup Solutions Cielo
(Measures impact created in the market)

Aspirants
Allegis Global Solutions
ADP RPO

WilsonHCG
Korn Ferry RPO
Market Impact

Pontoon Solutions
IBM TAO
Yoh Sevenstep
LevelUP Alexander Mann Solutions
Orion Novotus Pierpoint KellyOCG
Hire Velocity
Engage2Excel

AgileOne
AMN Healthcare
PrincetonOne
Personify
Advantage xPO
Newton Talent
Method3 Endevis
ACA Talent Hueman RPO

Aspirants Hudson RPO

Low
Low High
Vision & capability
(Measures ability to deliver services successfully)

Note: Assessment for all Aspirants and AgileOne, Hire Velocity, and Orion Novotus among Major Contenders excludes service provider inputs and is based on Everest Group’s proprietary
Transaction Intelligence (TI) database, service provider public disclosures, and Everest Group’s interactions with RPO buyers. For these companies, Everest Group’s data for
assessment may be less complete

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ADP RPO | RPO in North America profile (page 1 of 4)
Service capability and strategy

Company profile: ADP RPO is the Recruitment Process Outsourcing (RPO) arm of ADP, North America EMEA Asia Pacific South America
LLC, a comprehensive human capital management solution provider. ADP RPO provides 925 72 152 23
end-to-end talent acquisition and turnover consulting, employment branding, strategic
recruiting solutions (executive, military, diversity, and university), data Total RPO delivery FTEs = 1,172
analytics/benchmarking, workforce planning, recruiting/applicant tracking technology, offer Total RPO technology FTEs = 50
letter management, and vendor management for exempt and non-exempt hires across all
Technology capabilities within key RPO areas
industries. ADP owns AIRS recruitment training, the industry standard for certified
recruitment training offering certifications and recruiter-led courses and outplacement Proprietary/
services. Key RPO areas Partnership Details
Headquarter: Findlay, Ohio, United States
Employer branding Both ADP’s employment brand activation and creative
Leadership: Debbie Dyson, President, National Account Services; Tina Tromiczak,
services leverage proprietary technology, array of
GM/SVP, ADP RPO
third-party solutions, and social media tools
Website: https://www.adp.com
Talent communities Both Supports clients with talent communities, branding,
Partnership and employment marketing initiatives using other
⚫ RPO service provider: None
ATS platforms and partnerships
⚫ HRO service provider: ADP, LLC (parent company) Workforce planning Proprietary ADP talent consulting and strategic advisory services
⚫ MSP service provider: None provide consulting expertise for workforce planning
initiatives
Recent RPO-related developments/announcements Sourcing Both Leverages proprietary technology, AI/ML, external
⚫ 2018: Developed a solution to release monthly workforce vitality report, compliance, and sourcing technologies, and social media
legislative trackers
⚫ 2018: Launched hiring manager interview training through AIRS, powered by ADP
Screening Both ADP leverages vendor-neutral solutions with other
⚫ 2017/18: Established service centers in Romania and Singapore
ATS systems to provide cohesive screening solutions
⚫ 2017: Automated advertising coordination for job postings and performance tracking Interview scheduling Both The recruitment management process and vendor-
⚫ 2017: Developed industry benchmarking solution for recruiting and coordination neutral solutions are supported by standard API
⚫ 2017: Expanded brand activation and creative services portfolio to provide career site integration
and landing page solutions
Assessment Partnership Partnered with solutions that are supported by
⚫ 2017: Expanded talent consulting to include retention and turnover consulting
standard API integration
⚫ 2017: Created ADP outplacement service to assist transitioning employees to their next
career opportunity Background checking Both ADP recruitment management and vendor-neutral
solutions are supported by standard API integration
Reporting Descriptive Predictive Prescriptive and various partnerships
Analytics
✓ ✓ ✓ ✓ Onboarding Both Offers employment eligibility processing (I-9, Federal,
state and local W4, green cards, and work visas)
policy acknowledgements and new hire paperwork
Robotic Process Artificial Intelligence / Natural Language requirements.
Automation Automation Machine Learning Processing
Outplacement Both Offers services with proprietary technology-named
✓ ✓ ADP outplacement as well as with partner technology

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ADP RPO | RPO in North America profile (page 2 of 4)
Client portfolio

RPO experience Frequency of inclusion of geographies in RPO deals

⚫ Total number of current RPO clients: not disclosed
⚫ Total number of annual hires managed: not disclosed Number of deals = Confidential

Major RPO clients

North America 94%

EMEA 13%
Not Disclosed

Asia Pacific 8%

Central & South America 12%

RPO split of hires by job family RPO split of clients by industry RPO buyer-size mix
100% = not disclosed 100% = not disclosed

Energy & <3,000

utilities (1%) Other employees
Healthcare/ pharma
Media 11%
(1%) 26% 23%
Not Disclosed
>15,000
49%
3,000-15,000 employees
Hi-tech & 4% 18% Manufacturing 40%
telecom employees
11%
BFSI 16%
Retail

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ADP RPO | RPO in North America profile (page 3 of 4)
Key delivery locations

Findlay
Fort Collins Wayne
Norfolk
Tempe

Maitland

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ADP RPO | RPO in North America profile (page 4 of 4)
Everest Group assessment – Leader

Measure of capability: High Low

Market impact Vision & capability

Scope of Innovation and Vision and

Market adoption Portfolio mix Value delivered Overall services offered investments Delivery footprint strategy Overall

Strengths Areas of improvement

⚫ ADP RPO is the RPO arm of ADP LLC, a leading provider of HRO services. ADP RPO was ⚫ While ADP RPO has a very strong foothold in exclusively North
formed after ADP’s acquisition of the U.S.-based RPO provider, TheRightThing, in 2011 America-focused deals, it should also look to win more complex, multi-
⚫ ADP RPO is one of the leading players in North America, evident from its market success country deals originating out of North America to be able to compete
both in terms of its client portfolio and the hires it manages in the region. It has a diversified effectively with its peers
client base, with a strong presence across industries, including some upcoming and fast- – Though the inclusion of other regions outside North America is
growing industries such as healthcare and retail increasing in its RPO deals, the number of hires managed in these
⚫ ADP RPO’s sweet spot is the small- and mid-market buyers in the region that are looking for regions is relatively very less
a single provider for their RPO and HRO needs. About two-thirds of its client portfolio in ⚫ While ADP RPO’s time-to-fill for middle- to low-skill roles is noteworthy,
North America is in the small- and mid- markets, which is a testament to the customized and there is further scope to improve its capabilities for some niche and
flexible solutions it offers to its clients difficult-to-fill roles
⚫ ADP RPO has a very strong delivery footprint in North America, and while it provides a high- ⚫ ADP’s recent acquisition of Workmarket, a cloud-based freelancer
touch experience for some of the more strategic processes, it also leverages offshoring to management solutions provider, has given it the required impetus to
improve internal efficiency. It is able to build on its capabilities in North America and start managing contingent workforce; however, the result is yet to
proactively expand to other geographies as per its clients’ requirements materialize completely
⚫ ADP RPO developed an advanced analytics platform and a proprietary compensation
explorer tool, which benchmarks salaries across industries and job profiles in the U.S.,
filterable to city level. This tool helps ADP RPO to take a consultative approach to help its
clients in demand and workforce planning
⚫ It is also making rapid investments to expand its technology stack for RPO solutions. Some
of its recent investments include AI-based chatbots, automated drip email campaigns
targeting passive candidates, mobile- enabled prescreening and interview scheduling, and
programmatic job advertising, among others
⚫ ADP RPO has specialized recruitment offerings and providers consulting services for
military, platinum, university, and diversity recruitment; social talent solutions; and retention
and turnover

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 Appendix

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Everest Group PEAK Matrix™ is a proprietary framework
®

for assessment of market impact and vision & capability ™

Everest Group PEAK Matrix

High

Leaders
Measures impact created in the market

Major Contenders
Market impact

Aspirants

Low
Low High
Vision & capability
Measures ability to deliver services successfully

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Services PEAK Matrix™ evaluation dimensions
®

Measures impact created in the market –

captured through three subdimensions

Market adoption
No. of clients, revenue base, and Leaders
YOY growth, deal value/volume

Major Contenders

Market impact
Portfolio mix
Diversity of client/revenue base
across geos and type of
engagements
Aspirants

Value delivered
Value delivered to the client
based on customer feedback Vision & capability
and transformational impact
Measures ability to deliver services successfully.
This is captured through four subdimensions

Vision and strategy
Vision for the client and itself;
future roadmap and strategy
Scope of services offered
Depth and breadth of services
portfolio across service sub-
segments / processes
Innovation and investments Delivery footprint
Innovation and investment in the Delivery footprint and global
enabling areas, e.g., technology sourcing mix
IP, industry/domain knowledge,
innovative commercial
constructs, alliances, M&A, etc.

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FAQs

Does the PEAK Matrix™ assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix assessment adopts an unbiased and fact-based approach (leveraging service provider / technology vendor RFIs and
Everest Group’s proprietary databases containing providers’ deals and operational capability information). In addition, these results are validated /
fine-tuned based on our market experience, buyer interaction, and provider/vendor briefings
Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?
No. The PEAK Matrix highlights and positions only the best-in-class service providers / technology vendors in a particular space. There are a number of
providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is
itself a favorable recognition
What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK Matrix position”?
A PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”, “Major Contender,” or “Aspirant” title,
Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric-level
assessment and associated commentary is helpful for buyers in selecting particular providers/vendors for their specific requirements. It also helps
providers/vendors showcase their strengths in specific areas
What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research?
⚫ Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment
⚫ Participation incentives for providers/vendors include adequate representation and recognition of their capabilities/success in the market place,
and a copy of their own “profile” that is published by Everest Group as part of the “compendium of PEAK Matrix providers” profiles
What is the process for a service provider / technology vendor to leverage their PEAK Matrix positioning and/or “Star Performer” status ?
⚫ Providers/vendors can use their PEAK Matrix positioning or “Star Performer” rating in multiple ways including:
– Issue a press release declaring their positioning. See citation policies
– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leverage PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credential packs, client presentations, etc.)
⚫ The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated POC at
Everest Group.
Does the PEAK Matrix evaluation criteria change over a period of time?
PEAK Matrix assessments are designed to serve present and future needs of the enterprises. Given the dynamic nature of the global services market and
rampant disruption, the assessment criteria are realigned as and when needed to reflect the current market reality as well as serve the future expectations
of enterprises

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 About Everest Group

® Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in making
well-informed decisions that deliver high-impact results and achieve sustained value.
Our insight and guidance empower clients to improve organizational efficiency,
effectiveness, agility, and responsiveness. What sets Everest Group apart is the
integration of deep sourcing knowledge, problem-solving skills and original research.
Details and in-depth content are available at www.everestgrp.com.

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