1. 1 People Making Technology Work ™ The HRO impact on Corporate Relationships RDC September 2005

2. 2 People Making Technology Work ™ Speakers: Paul DeBeor,CRPACS Mike Brannan,CRP CENDANT Mobility Moderator : Tracy Hutton, CRP CENTURY 21 Scheetz

3. 3 People Making Technology Work ™ Topics for Discussion  What are your concerns ?  Who is ACS and other HRO players?  What is BPO vs. HRO?  Scope of Services  Benefits of an HRO  Why an HRO?

4. 4 People Making Technology Work ™  Founded in 1988  More than $4 billion in annual revenues  Fortune 500 Company  Diverse clients and industries  More than 50,000 employees  NYSE symbol: ACS  www.acs-inc.com ACS & Business Process Outsourcing Revenue Mix 3/4 of revenue from BPO services  Good mix of public and private sector business  Revenues balanced across segments Revenue Mix 3/4 of revenue from BPO services  Good mix of public and private sector business  Revenues balanced across segments Business Process Outsourcing 76% IT Outsourcing 24% State and Local 51% Federal 6% Commercial 43 %

5. 5 People Making Technology Work ™ Other HRO Players  Accenture HR Service  Aon Consulting  Ceridian  Convergys  Fidelity  Hewitt Associates (Exult)  IBM  Many Others (Industry in its Infancy)

6. 6 People Making Technology Work ™ BPO vs. HRO  BPO = Business Process Outsourcing. This is a very broad term that refers to the outsourcing of any business function, not just HR related activities.  HRO or HRO-BPO = Human Resource Outsourcing. This can be broken down into 2 areas:  HR processing services which would include payroll processing, benefits admin, etc, but not with the transfer of management responsibility to the external vendor  HR BPO involves the comprehensive outsourcing of most, if not all, of the mgt and administration of all HR functions to a 3 rd party.  There can be a 3 rd step whereby an HRO becomes a true business partner by assisting in a client’s strategic HR focus and not just on transactional processing

7. 7 People Making Technology Work ™ HRO Scope of Services Value Added HighLow Complexity of Interaction High Low Employment Services Corporate Governance Services Recruitment, Assessment & Selection Policy Inquiries & Resolution International Service Personnel Admin. Training Administration Integrated Disability Case Management Professional & Advisory Services Vendor Management Labor Relations Performance Management Learning Management Labor Relations Strategy Overall HR Strategy Relocation Services Benefits Administration Job Posting Employment Changes Payroll Benefits Sign-up Form Submission Change Management Consulting Transaction Services HR Policy Employee Recordkeeping HRIS Employee Assistance Programs Strategic Workforce Planning & Analysis Compensation & Benefit Policy/Design Employee Relations Drug TestingCompensation Administration

8. 8 People Making Technology Work ™ HRO Benefits/Value  Financial/Cost Savings  Standardized processes  Measured and reported SLAs  Economies of scale  Avoidance of capital investments  Reduced headcount needs  Self service capabilities  Single point of contact  Off-Shoring  Improved/consistent employee satisfaction  Better able to effect changes in policies  Access to expertise  Shift in HR focus allowing retained employees to focus on strategic issues  Improved competitiveness  Risk mitigation

9. 9 People Making Technology Work ™ Why an HRO ?  CLIENTS – Integration  Growth  Margin  Profitability  Increasing market share

10. 10 People Making Technology Work ™ Why an HRO? Of 122 surveyed companies with over $1Billion in Sales:  76% have already outsourced one or more major HR function (an increase form 62% in the prior year)  Another 15% have outsourcing in progress or planned  Only 9% won’t outsource some HR function compared to 23% the prior year (In the US it’s only 4%)  More companies are looking at a single source HRO  Two thirds of them are already in a shared services mode, with more on the way – not a barrier to outsourcing  44% of those that have outsourced have achieved their objectives and 47% have partially met their objectives. Only 9% have not met their targets  Of those that have already outsourced, 45% will renegotiate, 26% will re-bid, and 29% will extend on the same terms and conditions…………0% will bring back in house. Source: Accenture HR Services-The Conference Board, April 2004

11. 5 T H E A D V A N T A G E I S R E A L September 28, 2005 Mike Brannan, CRP Senior Vice President, Outsourcing Solutions

12. Topics for Discussion:  Who is Cendant Mobility  Cendant Corporation overview  Relocation is “in-scope” on most enterprise-wide HRO engagements  HRO Trends  HRO Buyer CTQs (critical to quality measurements)  Relationships with clients – past, present, future  Open discussion Cendant Mobility 5

13. Asia PacificThe Americas Europe, Middle East and Africa Over 2,300 employees Over 2,300 employees 13 office locations on 4 continents 13 office locations on 4 continents 49 languages 49 languages Globally linked on one platform Globally linked on one platform Cendant Mobility Legend Offices Service Centers Doing business in Cendant Mobility | Reach & Expertise

14. Our Parent – Cendant Corporation Vehicle Services Avis Budget Travel Distribution Services Galileo International Highwire Cheaptickets.com Travelport Orbitz Real Estate Services Financial Services Trilegiant Progeny Cims Hospitality Services Days Inn Howard Johnson RCI Cuendet Wingate Ramada Fairfield Resorts Knights Inn Holiday Cottages

15. Total HRO Solution Relocation is “in-scope” HRO Solution PayrollCompensationRecruitingMobility Employee Contact Centers TrainingData Mgmt Benefits Admin

16. Growth: HRO industry is expected to continue to grow. Global HRO Market growing and expected to reach over $80 billion by 2008 Mid Markets: HROs will continue to focus on mid market (companies with 20k employees and less). Year of the Skeptic: Due to market maturation, former buyers who were skeptics are entering the market Globalization: Through consolidation and partnering HROs will continue to expand their global footprint to assist their clients in globalizing HR Standardization: No more “mess for less”; now vision with standards. HROs are cross pollinating best practices amongst their clients and actually transforming HR services Sources: HRO Today and The Yankee Group Projected 2005 HRO Trends 5

17. 1. Execute on Buyer’s Vision of the Future State Capabilities – self service applications, automation & productivity Capabilities – self service applications, automation & productivity Flexibility – global reach and IT infrastructure Flexibility – global reach and IT infrastructure Capacity - ability to handle growth (geographic, M&A, JV etc..) Capacity - ability to handle growth (geographic, M&A, JV etc..) 2. Cultural Fit and Chemistry of HRO’s Delivery Team Six Sigma/Process Improvement Techniques Six Sigma/Process Improvement Techniques Service Centers Service Centers 3. Cost Savings Now an expectation Now an expectation Sources: Equaterra Consulting 2005 HRO Buyer’s Top 3 CTQs 6

18. Relocation Supplier Support Structure (early 1990’s) Client Contact 3 rd Party Relocation Company Household Good Providers Mortgage Providers Real Estate Community

19. Impact of Relocation Outsourcing (late 1990’s to present) Client Contact 3 rd Party Relocation Company Mortgage Provider Household Goods Provider Real Estate Community Select Preferred Suppliers

20. Impact of HR BPO (immediate future state) Real Estate Community  HRO Provider might work directly with Real Estate Community and Other Service Providers

21. How can Relocation Director’s strategically position their departments for the future ?