GVHR » Topics » We face direct and overlapping competition from a number of other companies which may affect our ability to retain existing clients and attract new clients.

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.

We face direct and overlapping competition from a number of other companies which may affect our ability to retain existing clients and attract new clients.

 

In order to acquire new clients, we must first convince potential clients that a HR outsourcing provider is a superior option as compared to their current internal HR solutions. For potential clients that choose to outsource these services, we then face direct competition from a number of providers that also operate on a co-employment platform, such as Administaff, Inc., as well as companies that primarily provide payroll processing services in addition to co-employment services such as Automatic Data Processing Inc.  We also face competition from certain information technology outsourcing firms and broad-based outsourcing and consultancy firms that provide or may seek to provide HR outsourcing services in addition to consulting companies that perform individual projects, such as development of HR strategy and information systems. Historically, most of these vendors have focused on discrete processes, but many are now promoting integrated process management offerings that may compete with our offerings. We expect that market experience to date and the predicted growth of the HR outsourcing market will continue to attract and motivate more competitors.

 

Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name recognition and more established relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service offerings more quickly, which could adversely affect our ability to attain new clients.

 

Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name recognition and more established relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service offerings more quickly and:

 

·        achieve greater scale and cost efficiencies; adapt more quickly to new or emerging technologies and changing client needs;

 

·        take advantage of acquisitions and other opportunities more readily; establish operations in new markets more rapidly;

 

·        devote greater resources to the marketing and sale of their services; and

 

·        adopt more aggressive pricing policies and provide clients with additional benefits at lower overall costs in order to gain market share or in anticipation of future improvements in delivery costs.

 

If our competitive advantages are not compelling or sustainable and we are not able to effectively compete with competitors, then we may not be able to increase or maintain our clients at profitable levels or at all.

 

The market for our services and our revenue growth depends on our ability to use the Internet as a means of delivering HR services and this exposes us to various security risks.

 

We rely on the Internet as a primary mechanism for delivering services to our clients and use public networks to transmit and store extremely confidential information about our clients and their employees. Our target clients may not continue to be receptive to HR services delivered over the Internet because of concerns over transaction security, user privacy, the reliability and quality of Internet service and other reasons. A security breach could disrupt our operations, damage our reputation and expose us to litigation and possible liability. We may be required to expend significant capital and other resources to address security breaches, and we cannot be certain that our security measures will be adequate. In addition, emerging or uncertain laws and regulations relating to Internet user

 

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privacy, property ownership, consumer protection, intellectual property, export of encryption technology, and libel could impair our existing Internet usage. This could decrease the popularity or impede the expansion of the Internet and decrease demand for our services. If we become subject to the application of laws and regulations from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to the Internet and other online services, our profitability and growth prospects may be adversely affected.

 

We are dependent upon technology services, and any damage, interruption, security breach or failure in our computer and telecommunications systems could adversely affect our existing client relationships and our ability to attract new clients.

 

Our business could be interrupted and we may lose data as a result of damage to or disruption of our computer and telecommunications equipment and software systems from natural disasters, floods, fire, power loss, hardware or software malfunctions, penetration by computer hackers, terrorist acts, vandalism, sabotage, computer viruses, vendor performance failures or insolvency, and other causes. Our business involves the storage and transmission of sensitive information about our clients and their employees and any system or equipment failure or security breach we experience could adversely affect our clients’ businesses, and could expose us to a risk of loss of this sensitive information, damage to our goodwill and reputation, litigation and possible liability. If our security measures are breached as a result of third-party action, employee error, malfeasance or otherwise and, as a result, someone obtains unauthorized access to client data, our reputation will be damaged, our business may suffer and we could incur significant liability. The precautions that we have taken to protect ourselves and minimize the impact of such events (such as our disaster recovery plans and encryption of sensitive information) may not be adequate, and we may be unable to recover data used in our operations or prevent unauthorized access to our client and employee data. Techniques used to obtain unauthorized access or to sabotage systems change frequently and generally are not recognized until launched against a target. As a result, we may be unable to anticipate these techniques or implement adequate preventative measures. If an actual or perceived breach of our security occurs, the market perception of our security measures could be harmed, and we could lose sales and clients.

 

We face direct and overlapping competition
from a number of other companies which may affect our ability to retain
existing clients and attract new clients.



 



In
order to acquire new clients, we must first convince potential clients that a
HR outsourcing provider is a superior option as compared to their current
internal HR solutions. For potential clients that choose to outsource these
services, we then face direct competition from a number of providers that also
operate on a co-employment platform, such as Administaff, Inc., as well as
companies that primarily provide payroll processing services in addition to
co-employment services such as Automatic Data Processing Inc.  We also face competition from certain
information technology outsourcing firms and broad-based outsourcing and
consultancy firms that provide or may seek to provide HR outsourcing services
in addition to consulting companies that perform individual projects, such as
development of HR strategy and information systems. Historically, most of these
vendors have focused on discrete processes, but many are now promoting
integrated process management offerings that may compete with our offerings. We
expect that market experience to date and the predicted growth of the HR
outsourcing market will continue to attract and motivate more competitors.



 



Certain of our existing or potential
competitors may have substantially greater
financial, technical and marketing
resources, larger customer bases, greater name
recognition and more established
relationships with their clients and key product and
service suppliers than we do. This
may enable them to develop and expand their
delivery infrastructure and service
offerings more quickly, which could adversely
affect our ability to attain new
clients.



 



Certain
of our existing or potential competitors may have substantially greater
financial, technical and marketing resources, larger customer bases, greater
name recognition and more established relationships with their clients and key
product and service suppliers than we do. This may enable them to develop and
expand their delivery infrastructure and service offerings more quickly and:



 



·        achieve greater scale and cost efficiencies;
adapt more quickly to new or emerging technologies and changing client needs;



 



·        take advantage of acquisitions and other
opportunities more readily; establish operations in new markets more rapidly;



 



·        devote greater resources to the marketing and
sale of their services; and



 



·        adopt more aggressive pricing policies and
provide clients with additional benefits at lower overall costs in order to
gain market share or in anticipation of future improvements in delivery costs.



 



If our
competitive advantages are not compelling or sustainable and we are not able to
effectively compete with competitors, then we may not be able to increase or
maintain our clients at profitable levels or at all.



 



The market for our services and our revenue
growth depends on our ability to use the
Internet as a means of delivering HR
services and this exposes us to various security
risks.



 



We
rely on the Internet as a primary mechanism for delivering services to our
clients and use public networks to transmit and store extremely confidential
information about our clients and their employees. Our target clients may not
continue to be receptive to HR services delivered over the Internet because of
concerns over transaction security, user privacy, the reliability and quality
of Internet service and other reasons. A security breach could disrupt our
operations, damage our reputation and expose us to litigation and possible
liability. We may be required to expend significant capital and other resources
to address security breaches, and we cannot be certain that our security
measures will be adequate. In addition, emerging or uncertain laws and
regulations relating to Internet user



 



19
















Table of Contents



 



privacy, property ownership, consumer protection,
intellectual property, export of encryption technology, and libel could impair
our existing Internet usage. This could decrease the popularity or impede the
expansion of the Internet and decrease demand for our services. If we become
subject to the application of laws and regulations from jurisdictions whose
laws do not currently apply to our business, or the application of existing laws
and regulations to the Internet and other online services, our profitability
and growth prospects may be adversely affected.



 



We are dependent upon technology services,
and any damage, interruption, security breach or failure
in our computer and telecommunications
systems could adversely affect our existing
client relationships and our ability
to attract new clients.



 



Our business could be
interrupted and we may lose data as a result of damage to or disruption of our
computer and telecommunications equipment and software systems from natural
disasters, floods, fire, power loss, hardware or software malfunctions,
penetration by computer hackers, terrorist acts, vandalism, sabotage, computer
viruses, vendor performance failures or insolvency, and other causes. Our
business involves the storage and transmission of sensitive information about
our clients and their employees and any system or equipment failure or security
breach we experience could adversely affect our clients’ businesses, and could
expose us to a risk of loss of this sensitive information, damage to our
goodwill and reputation, litigation and possible liability. If our security
measures are breached as a result of third-party action, employee error,
malfeasance or otherwise and, as a result, someone obtains unauthorized access
to client data, our reputation will be damaged, our business may suffer and we
could incur significant liability. The precautions that we have taken to
protect ourselves and minimize the impact of such events (such as our disaster
recovery plans and encryption of sensitive information) may not be adequate,
and we may be unable to recover data used in our operations or prevent
unauthorized access to our client and employee data. Techniques used to obtain
unauthorized access or to sabotage systems change frequently and generally are
not recognized until launched against a target. As a result, we may be unable
to anticipate these techniques or implement adequate preventative measures. If
an actual or perceived breach of our security occurs, the market perception of
our security measures could be harmed, and we could lose sales and clients.



 



We face direct and overlapping competition
from a number of other companies which may affect our ability to retain
existing clients and attract new clients.



 



In
order to acquire new clients, we must first convince potential clients that a
HR outsourcing provider is a superior option as compared to their current
internal HR solutions. For potential clients that choose to outsource these
services, we then face direct competition from a number of providers that also
operate on a co-employment platform, such as Administaff, Inc., as well as
companies that primarily provide payroll processing services in addition to
co-employment services such as Automatic Data Processing Inc.  We also face competition from certain
information technology outsourcing firms and broad-based outsourcing and
consultancy firms that provide or may seek to provide HR outsourcing services
in addition to consulting companies that perform individual projects, such as
development of HR strategy and information systems. Historically, most of these
vendors have focused on discrete processes, but many are now promoting
integrated process management offerings that may compete with our offerings. We
expect that market experience to date and the predicted growth of the HR
outsourcing market will continue to attract and motivate more competitors.



 



Certain of our existing or potential
competitors may have substantially greater
financial, technical and marketing
resources, larger customer bases, greater name
recognition and more established
relationships with their clients and key product and
service suppliers than we do. This
may enable them to develop and expand their
delivery infrastructure and service
offerings more quickly, which could adversely
affect our ability to attain new
clients.



 



Certain
of our existing or potential competitors may have substantially greater
financial, technical and marketing resources, larger customer bases, greater
name recognition and more established relationships with their clients and key
product and service suppliers than we do. This may enable them to develop and
expand their delivery infrastructure and service offerings more quickly and:



 



·        achieve greater scale and cost efficiencies;
adapt more quickly to new or emerging technologies and changing client needs;



 



·        take advantage of acquisitions and other
opportunities more readily; establish operations in new markets more rapidly;



 



·        devote greater resources to the marketing and
sale of their services; and



 



·        adopt more aggressive pricing policies and
provide clients with additional benefits at lower overall costs in order to
gain market share or in anticipation of future improvements in delivery costs.



 



If our
competitive advantages are not compelling or sustainable and we are not able to
effectively compete with competitors, then we may not be able to increase or
maintain our clients at profitable levels or at all.



 



The market for our services and our revenue
growth depends on our ability to use the
Internet as a means of delivering HR
services and this exposes us to various security
risks.



 



We
rely on the Internet as a primary mechanism for delivering services to our
clients and use public networks to transmit and store extremely confidential
information about our clients and their employees. Our target clients may not
continue to be receptive to HR services delivered over the Internet because of
concerns over transaction security, user privacy, the reliability and quality
of Internet service and other reasons. A security breach could disrupt our
operations, damage our reputation and expose us to litigation and possible
liability. We may be required to expend significant capital and other resources
to address security breaches, and we cannot be certain that our security
measures will be adequate. In addition, emerging or uncertain laws and
regulations relating to Internet user



 



19
















Table of Contents



 



privacy, property ownership, consumer protection,
intellectual property, export of encryption technology, and libel could impair
our existing Internet usage. This could decrease the popularity or impede the
expansion of the Internet and decrease demand for our services. If we become
subject to the application of laws and regulations from jurisdictions whose
laws do not currently apply to our business, or the application of existing laws
and regulations to the Internet and other online services, our profitability
and growth prospects may be adversely affected.



 



We are dependent upon technology services,
and any damage, interruption, security breach or failure
in our computer and telecommunications
systems could adversely affect our existing
client relationships and our ability
to attract new clients.



 



Our business could be
interrupted and we may lose data as a result of damage to or disruption of our
computer and telecommunications equipment and software systems from natural
disasters, floods, fire, power loss, hardware or software malfunctions,
penetration by computer hackers, terrorist acts, vandalism, sabotage, computer
viruses, vendor performance failures or insolvency, and other causes. Our
business involves the storage and transmission of sensitive information about
our clients and their employees and any system or equipment failure or security
breach we experience could adversely affect our clients’ businesses, and could
expose us to a risk of loss of this sensitive information, damage to our
goodwill and reputation, litigation and possible liability. If our security
measures are breached as a result of third-party action, employee error,
malfeasance or otherwise and, as a result, someone obtains unauthorized access
to client data, our reputation will be damaged, our business may suffer and we
could incur significant liability. The precautions that we have taken to
protect ourselves and minimize the impact of such events (such as our disaster
recovery plans and encryption of sensitive information) may not be adequate,
and we may be unable to recover data used in our operations or prevent
unauthorized access to our client and employee data. Techniques used to obtain
unauthorized access or to sabotage systems change frequently and generally are
not recognized until launched against a target. As a result, we may be unable
to anticipate these techniques or implement adequate preventative measures. If
an actual or perceived breach of our security occurs, the market perception of
our security measures could be harmed, and we could lose sales and clients.



 



These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

We face direct and overlapping competition from a number of other companies which may affect our ability to retain existing clients and attract new clients.

        In order to acquire new clients, we must first convince potential clients that a HR outsourcing provider is a superior option as compared to their current internal HR solutions. For potential clients that choose to outsource these services, we then face direct competition from a number of providers that also operate on a co-employment platform, such as Administaff, Inc., as well as companies that primarily provide payroll processing services in addition to co-employment services, such as Automatic Data Processing Inc. and Paychex, Inc. We also face competition from certain information technology outsourcing firms and broad-based outsourcing and consultancy firms that provide or may seek to provide HR outsourcing services in addition to consulting companies that perform individual projects, such as development of HR strategy and information systems. Historically, most of these vendors have focused on discrete processes, but many are now promoting integrated process management offerings that may compete with our offerings. We expect that market experience to date and the predicted growth of the HR outsourcing market will continue to attract and motivate more competitors.

24


    Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name recognition and more established relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service offerings more quickly, which could adversely affect our ability to attain new clients.

        Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name recognition and more established relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service offerings more quickly and:

    achieve greater scale and cost efficiencies; adapt more quickly to new or emerging technologies and changing client needs;

    take advantage of acquisitions and other opportunities more readily; establish operations in new markets more rapidly;

    devote greater resources to the marketing and sale of their services; and

    adopt more aggressive pricing policies and provide clients with additional benefits at lower overall costs in order to gain market share or in anticipation of future improvements in delivery costs.

        If our competitive advantages are not compelling or sustainable and we are not able to effectively compete with competitors, then we may not be able to increase or maintain our clients at profitable levels or at all.

We face direct and overlapping competition from a number of other companies which may affect our ability to retain existing clients and attract new clients.





        In order to acquire new clients, we must first convince potential clients that a HR outsourcing provider is a superior option as compared to their current
internal HR solutions. For potential clients that choose to outsource these services, we then face direct competition from a number of providers that also operate on a co-employment
platform, such as Administaff, Inc., as well as companies that primarily provide payroll processing services in addition to co-employment services, such as Automatic Data
Processing Inc. and Paychex, Inc. We also face competition from certain information technology outsourcing firms and broad-based outsourcing and consultancy firms that provide or may
seek to provide HR outsourcing services in addition to consulting companies that perform individual projects, such as development of HR strategy and information systems. Historically, most of these
vendors have focused on discrete processes, but many are now promoting integrated process management offerings that may compete with our offerings. We expect that market experience to date and the
predicted growth of the HR outsourcing market will continue to attract and motivate more competitors.



24










    Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name recognition and more established
    relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service offerings more quickly, which
    could adversely affect our ability to attain new clients.





        Certain of our existing or potential competitors may have substantially greater financial, technical and marketing resources, larger customer bases, greater name
recognition and more established relationships with their clients and key product and service suppliers than we do. This may enable them to develop and expand their delivery infrastructure and service
offerings more quickly and:





    achieve
    greater scale and cost efficiencies; adapt more quickly to new or emerging technologies and changing client needs;


    take
    advantage of acquisitions and other opportunities more readily; establish operations in new markets more rapidly;


    devote
    greater resources to the marketing and sale of their services; and


    adopt
    more aggressive pricing policies and provide clients with additional benefits at lower overall costs in order to gain market share or in anticipation of future
    improvements in delivery costs.



        If
our competitive advantages are not compelling or sustainable and we are not able to effectively compete with competitors, then we may not be able to increase or maintain our clients
at profitable levels or at all.





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