Anything I write about outsourcing seems to lead to a heated debate. My article on the Death of Indian Outsourcing was one such piece. The more recent Obama and Outsourcing received a similar welcome. Regardless of what happens to the outsourcing industry as a result of the US elections in November, outsourcing firms will remain key contributors to a changing
My most recent Forbes Column, The Coming Death of Indian Outsourcing, discusses companies like ADP and their “nearshoring” moves.
Here’s Phil Wainewright’s piece on ADP and SaaS: ADP Sees incentive for SaaS. My related articles: * ADP Can Become a Powerhouse through Acquisitions * Can PayChex become a SaaS Aggregator? * Intuit Bets on SaaS, Not Yet on International * Concur’s SME Opportunity
SM: Out of 5.2M small businesses, only 800,000 are using a software service for payroll? JH: It is under 16%, and that is why this is an attractive space because it is un-penetrated. All 5.2M of those people have some solution, but our belief is that a lot of them are doing it manually and
SM: Financial institutions seem like a great distribution channel for small business payroll. JH: I think the distribution strategy is to be where people are likely to buy payroll. Be on the web, be at retail, be at the accountant, and be at the banks. SM: You do the tax portion as well. How about
SM: A key issue with small business facing products is how do you reach your customers, give that it is such a fragmented market. What did Intuit do? JH: It was a direct marketing play. Historically, as computers came down from the enterprise level (the IBMs of the world), they went to the mini computer