The HRO impact on Corporate Relationships RDC September 2005

1. The HRO impact on Corporate Relationships RDC September 2005

2. Speakers:Paul DeBeor,CRP ACSMike Brannan,CRP CENDANT MobilityModerator :Tracy Hutton, CRP CENTURY 21 Scheetz

3. Topicsfor 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. IT Outsourcing 24% State and Local 51% Federal 6% Commercial 43 % ACS & Business Process Outsourcing • 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 Business Process Outsourcing 76% Revenue Mix 3/4 of revenue from BPO services • Good mix of public and private sector business • Revenues balanced across segments

5. Other HRO Players • Accenture HR Service • Aon Consulting • Ceridian • Convergys • Fidelity • Hewitt Associates (Exult) • IBM • Many Others (Industry in its Infancy)

6. 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 3rd party. • There can be a 3rd 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. Overall HR Strategy Change Management Consulting Vendor Management Learning Management Compensation Administration Performance Management Integrated Disability Case Management Employee Assistance Programs Corporate Governance Services International Service Personnel Admin. Recruitment, Assessment & Selection Training Administration Policy Inquiries & Resolution Drug Testing Relocation Services Benefits Administration Job Posting Employment Changes Employment Services Payroll Benefits Sign-up Form Submission Employee Recordkeeping HRIS HRO Scope of Services Labor Relations Strategy Compensation & Benefit Policy/Design Strategic Workforce Planning & Analysis HR Policy Labor Relations High Employee Relations Value Added Professional & Advisory Services Low Transaction Services Low High Complexity of Interaction

8. 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 HRO Benefits/Value

9. Why an HRO ? • CLIENTS – Integration • Growth • Margin • Profitability • Increasing market share

10. 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 Why an HRO?

11. 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 5

12. Cendant Mobility 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 5

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

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

15. Total HRO SolutionRelocation is “in-scope”

16. Projected 2005 HRO Trends 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 consolidationand partneringHROs 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 5

17. 2005HROBuyer’s Top 3 CTQs 1. Execute on Buyer’s Vision of the Future State • Capabilities – self service applications, automation & productivity • Flexibility – global reach and IT infrastructure • 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 • Service Centers 3. Cost Savings • Now an expectation Sources: Equaterra Consulting 6

18. Relocation Supplier Support Structure (early 1990’s)

19. Impact of Relocation Outsourcing (late 1990’s to present)

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

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