Publishes Article on Studies About Outsourcing Payroll

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Two studies conducted by PwC compare the costs and benefits of outsourcing payroll versus using in-house or legacy systems™, the largest research and Web destination for Senior HR Professionals, recently published an article on its site reviewing two Total Cost of Ownership (TCO) studies conducted by PwC. The article was written by Lorena Harris, director of marketing communications for ADP National Account Services, which commissioned the study.

TCO is a tool that helps companies determine whether they benefit financially from the use of a specific technology. Although TCO studies are not uncommon, many of them do not include all costs involved, i.e., those ‘hidden’ or shifted to other budgets.

To address these concerns, ADP commissioned PricewaterhouseCoopers (PwC) to conduct two studies on TCO for in-house payroll and human resources systems (2003) and for outsourced solutions (2004).

The key conclusion from the 2003 study is that in-house systems are more expensive and less strategic than buyers may have realized. Hidden costs, such as upgrade expenses, IT resources, and non-payroll department time collection activities drive the average system cost per paycheck to $16 and the average annual HRIS cost to approximately $500,000. The key finding from the 2004 client study is that outsourcing means an average 35% improvement in payroll TCO and more than 50% savings for HRIS, plus many other benefits associated with outsourcing.

The article discusses results of both studies in further detail and offers best practice suggestions for understanding your true costs, automating and controlling your time and labor management process, stepping off the "technology treadmill," and more.

To read the complete article, visit

Additional survey results and the PwC white papers are available at

About ADP:

Automatic Data Processing, Inc. is one of the largest computing services firms in the world, with $7 billion in revenue and 500,000 clients. The National Accounts Services (NAS) division is a leading provider of integrated business outsourcing solutions for large employers. NAS pays more than 34 million employees worldwide every payday. Visit

About is the #1 resource for strategic HR professionals in the U.S., Canada and Europe. Its mandate is to educate and inform the HR community a host of different ways: an online magazine with over 10,000 articles (including regular columns with Thought Leaders, Industry Experts and Analysts), free educational online learning seminars, annual gala events (Power of People Series), in-depth research reports, a network of practitioners, and much more. Positive response in the marketplace has led to’s success and growth, and will continue to do so in the years ahead.


Terri Joosten, VP of Sales

1-877-472-6648, ext. 113

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: on behalf of the company listed above.

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Lynn Lievonen
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