Managing in a Flat World: Rebecca Scholl

Managing In A Flat World ITO 25% BPO 75% Revenue Mix Market Segment Government 41% Commercial 59% ACS Quick Facts  Founded in 1988  FORTUNE 500 Company  750 global locations  Over $5.5 billion in annual revenue  Serving clients in nearly 100 countries  Diverse client base  More than 58,000 employees  NYSE symbol: ACS 

Managing In A Flat World Our Core Business: Outsourcing

Managing In A Flat World Managing in a Flat World  Top Trends in Global Sourcing  Offshore: A provider’s perspective  Recommendations for Users  Building Dallas Tomorrow and After

Managing in a Flat World: Top Trends in Global Sourcing

Managing In A Flat World The Outsourcing Market is Maturing, But Still Young Gartner defines business process outsourcing as the delegation of an IT-enabled business process to a third party that owns, administers and manages the business process according to a defined set of metrics. Enterprise Services Human Capital Finance and Regulatory IT Facilities Mgmt Source: Gartner

Managing In A Flat World Global Sourcing & Outsourcing: 2 Different Decisions Centralized Offshore Local Internal External Outsource   Offshore   Nearshore Location of Resources Outsource   Onsite   Onshore Insource   Offshore   Nearshore Insource   Internal   Onsite “Captive Center” Source of Resources

Managing In A Flat World Portfolio of Global Sourcing Services Source: Gartner and ACS $$= Savings Potential XX= Risk = Potential Growth Opportunity High Low Penetration & Maturity Offshore Leveragability Low High BPO $$$$ XXX R&D $$$$ XXX Contact Centers $$$ XXX BI $$ X App. Dev. $$$ XX App. Maint. and Mgmt. $$$$ X EAI $$$ XXX App. Testing QA $$$ X Packaged Apps. $$$ XX Infra- structure Services $$$$ XX Design/ Architecture $$ XXX

Managing In A Flat World Trends in Global Sourcing  Increasing globalization of business: Your customers are doing business globally  Growing maturity of global delivery models: No longer for early adopters  Expanded options: New countries, new processes, new technologies  Different reasons to centralize: Cost, quality, business alignment, synergies  Regional differences: North America early adopter, Europe more cautious due to data privacy and language diversity

Managing in a Flat World: A Provider’s Perspective

Managing In A Flat World Global Footprint in 1998

Managing In A Flat World Global Footprint in 2007

Managing In A Flat World Site Selection Considerations  Political climate  Business ethics  Telecom infrastructure  Labor force literacy and education levels  Experience in industry  Location and time zones  Language skills  Cultural affinity Source: Forrester Research, Offshoring Contact Centers: Identifying Locations, May 24, 2006

Managing In A Flat World Provider Management Strategies  Link to domestic  Not just cheap labor  When in Rome…  Understand the labor laws  Step at a time

Managing In A Flat World Top Strategic Issues Facing Providers by 2010 Horizontalvs.Vertical Comprehensivevs.Selective Globalvs.Local Laborvs.Automation Dedicatedvs.Shared Competitionvs.Coopetition

Managing in a Flat World: Advice for Users

Managing In A Flat World Top 5 Mistakes in Global Sourcing  Expecting quick results from global sourcing  Expecting immediate cost savings or productivity gains  Underestimating or deny the impact of cultural differences  Forgetting to communicate to key stakeholders  Thinking that only a single-country strategy will support your business needs

Managing In A Flat World Managing Expectations – HR Example Subject Matter Experts & HR Business Partners:   Fail to find new way of working together   Concerns about job role and security   Those previously responsible for HR transactions not realigned   HR lacks ability in business partner role and reverts to old transactional one Senior Management & HR Management:   No support from leadership   Concerns about costs and impact on existing operation Employee & Manager:   Not convinced of benefits of centralizing HR   Do not know how to use new transactional services   Lack technological sophistication   Perceive lack of support from HR Business Partner   Resist transition to an ownership/ self-service culture HR Service Center & Self-Service :   Perceived complexity of self-service interfaces   Incomplete knowledge transfer from local HR   Employees lack knowledge of new roles, processes, policies, systems   Cultural, language and privacy issues may arise in some locations Manager Self- Service HR Business Partners Senior Management & HR Leadership Subject Matter Experts ManagerEmployee Outsource Partner ACS Third-Party Suppliers (3,000) HR Service Center Employee Self- Service

Managing In A Flat World Build a Strong Governance Model Daily Dialogue with SMEs & On-site QA Weekly Operations Review Meetings Quarterly Advisory Board Monthly Customer Council & Metrics Review

Managing in a Flat World: Building The Future of Dallas

Managing In A Flat World What Skills Will Be Needed in 2010?  Professional development within the user community  Role of advisors Managing In A Flat World

What Skills Will Be Needed in 2020?  Priorities for Education K-12  Building the new Dallas competitive advantage Managing In A Flat World

Managing in a Flat World This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of These statements are subject to numerous risks and uncertainties, many of which are outside the Company’s control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking state-ments. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company’s prior filings with the Securities and Exchange Commission, includ-ing the most recent Form 10-K. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise. ACS Copyright 2007 This presentation may not be reproduced without the expressed written consent of ACS, Inc. The ACS logo, and logo type are the property of Affiliated Computer Services, Inc. All logos used in this presentation are the sole property of their respective owners.