ADP Expands Alliance with SAP

Companies deliver global business process outsourcing offering

Roseland, NJ — May 14, 2004 — Automatic Data Processing (ADP) Inc., a global payroll and human resources services provider, announced plans with worldwide business solutions software provider SAP to expand global solution for international organizations

ADP Employer Services division, which provides integrated outsourced payroll and human resources services, will expand its alliance with SAP AG to offer the companies' business process outsourcing (BPO) solution globally.

The companies said the partnership enables customers to integrate and streamline human capital management processes. Offered across the Asia-Pacific region since 2001, the outsourcing solution will be available worldwide to large-scale companies that are making regional or global decisions.

ADP said it would offer payroll and human resource BPO services that are built on mySAP enterprise resource planning (ERP) Human Capital Management, and use SAP NetWeaver, SAP's open integration and application platform, to enhance the BPO offering's integration and interface capabilities with customer and other third-party systems.

The announcement was made at SAPPHIRE '04, SAP's international customer conference that was held in New Orleans, La., May 11-13.

ADP said its global payroll and human resources solution is designed to help customers globalize payroll processes while providing accurate and compliant reporting at the local and regional level. By using mySAP ERP Human Capital Management and SAP NetWeaver, ADP said companies would also have the ability to enhance employee interaction with business processes and information.

"Broadening our agreement with SAP will help us to meet the demands of the growing market for outsourced global payroll and human resources solutions," commented Gary Butler, ADP president and chief operating officer.

"Outsourcing will continue to be a major driver of growth in IT services, and we have seen a growing demand of customers who wish to outsource their human capital management processes," stated Leo Apotheker, executive board member, SAP AG. "The joint offering will provide our shared customers with a single solution that lowers total cost of ownership and will allow them to focus on and build upon their core business competencies."

General availability of the expanded ADP services on the SAP platform will begin with introduction into the European market in Fall 2004. ADP and SAP will include their Asia-Pacific joint offering as part of the expanded BPO offering. The Asia-Pacific solution covers companies in Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand through a service center in Australia.

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