Administaff and OrgPlus: A New Way for MSPs to Manage Staff?

I concede: This isn’t your typical managed services story. It starts with Administaff, a full-service HR organization for small and midsize businesses, acquiring portions of OrgPlus — a software package used by more than 50,000 businesses worldwide. As I read about the business combo, I started to wonder if managed services providers (MSPs) will leverage OrgPlus within their own halls.

First, a little background: Administaff is more than a HR firm. The company develops software for time and attendance, expense reimbursement and performance management. Administaff also helps clientele with recruiting, background screening and retirement services, among others. Meanwhile, OrgPlus’s software allows users to create organizational charts and analyze the performance of a company’s workforce. Administaff acquired OrgPlus’s small business software from HumanConcepts in early January; HumanConcepts retains OrgPlus’s enterprise offerings. Financial terms of the deal were not disclosed.

For very small MSPs, I suspect Administaff’s offerings may be overkill. But as MSPs grow, I’ll be curious to see if the Administaff-OrgPlus combo begins to take hold. Administaff’s market sweet spots involve two tiers: Small Businesses (10 to 149 employees) and midmarket customers (150 to 2,000 employees.).

As part of the Administaff-OrgPlus deal, AdminiStaff gains access to OrgPlus’s SaaS source code, which we expect to debut sometime in 2011. When that SaaS code arrives we’ll be watching to see if AdminiStaff and OrgPlus tune the software for IT service providers.

Additional insights from Joe Panettieri. Sign up for MSPmentor’s Weekly Enewsletter, Webcasts and Resource Center. Follow us via RSS, Facebook, Identi.ca and Twitter. Check out more MSP voices at www.MSPtweet.com. Read our editorial disclosure here.