1. ITFMA - Presentation Abstract In the presentation to follow, the presenter will discuss the “learnings” that have resulted from outsourcing of IT services from his company. It should be noted that this process is still on-going but key relevant information has been learned simply from the RFP process and through discussions with major international IT Service Providers This presentation will include a discussion on the Request for Proposal (RFP) process with vendors and key findings which were unknown at the start of this project. This a great presentation to attend if your interested in outsourcing some or all of your IT service organization.

2. About the Presenter Michael Kiely is currently a Sr. Director of IT Finance at Marriott Vacations Worldwide Corporation. He has over 20 years experience in IT Financial Management. In that time he has been an IT financial manager for two major corporations (e.g. Marriott and Lykes Services Inc.) He has worked as both an internal auditor for Lykes Services Inc. (e.g. Peoples Gas of Tampa, Lykes Steamship, Lykes Meats, Florida Gold Orange Juice, etc.) He has also worked as an external auditor for both Hacker, Johnson and KPMG. He is a Certified Public Accountant, Certified Information Technology Professional and a Certified Information Systems Auditor. In addition, he is an Associate Professor at Valencia College in Orlando Florida and is ABD in his PHD from Northcentral University.

3. Outsourcing IT Services – What we learned! IT Financial Management Best Practices – Michael Kiely, CPA, CITP, CISA, PHD-ABD

4. Why driven to IT Outsourcing? Increased pressure to lower IT costs. Depth and breath of applications support significant. Costs to achieve economies of scale in IT Service Management not practical. IT was not the main focus of the business. “We are a Resort Hospitality Company.” IT Service Outsourcing is pervasive in the industry and has become a normal part of IT service operations.

5. IT Service Providers Evaluation Process - Overview RFP Negotiation Planning Negotiation and Due Diligence Contract Signature Start Transition

6. We identified a group of 6 key categories for the evaluation on the Service Provider proposals. The categories were weighted based on an assignment of percentage points (%) to each category, such that the sum of the percentage points for all categories equals 100%. RFP Evaluation Categories

7. Solution Evaluation Sub-Categories

8. Financials Evaluation Sub-Categories

9. Results of the RFP The RFP was sent to 4 of the 5 original vendors who participated in the original IT Outsourcing and we added one new vendor. The participating vendors were all based out of India. All provided significant savings from our current cost of operations. Savings was deemed significant in a bundled approach and in an “a la carte” approach.

11. Key Findings from RFP 1.Outsourcing as a Single Bundle of Services to one vendor was not the most desirable. 2.International Vendors – The best candidates to support our environment in terms of depth of servicing support, governance, security, etc. were from based in India. 3.Original assumption was to outsource all services as one bundle but this was not the most financially positive for us. International vendors all did not feel that infrastructure support was key to their delivery of services. 4.RFP process changed to multiple vendors rather than one single vendor to support IT Services. 5.Savings was significant in application maintenance and application development areas (e.g. 25% to 35% reduction in costs). 6.Savings not as significant in the Infrastructure support areas outside of the United States. (Based on our environment and legal and security requirements.)

12. The goal of that effort was to select a single vendor. Through the RFP process, it was determined that there was no business case with that approach. While outsourcing the entire environment to a single vendor did not make sense, it was determined that there are areas that should be considered for outsourcing. As a result we are pursuing the following; 1.As part of the Separation work, establishing Managed Hosting Services with local vendors in the United States. This will address are infrastructure support needs by addressing the following areas: Hosting Server Services Network Services Database Administration 2.Application Service RFP for outsourcing – Completed Application Maintenance Testing 3.Perform separate RFP for Application Development – In process 4.Perform separate RFP for End User Support Areas (e.g Field and Help Desk) – In process for 2014 Status of Sourcing efforts for IT

13. Summary Question and Answer Session