KPMG Consulting IT Infrastructure 15 October 2001 Page 1 Agenda n IT Direction for KCIN n Today ’ s Environment n Strategic Direction n Global Transformation Update n IT Project Proposal Process n Q&A Page 2 IT Direction for KCIN n Fully separate from all KPMG LLP IT support services – except where costs and service levels are better than those we could obtain elsewhere n Outsource as many functions as possible anizations that can support our global business requirements ? Help Desk ? Deskside support ? WAN ? Application Hosting ? Procurement and Asset Management ? Mail n Establish global infrastructure platform – migrate international entities first, then migrate the US ? Non-US entities have mon platform or infrastructure support ? The pain is greater internationally, cost impact to migrate is less than US ? US migration timed to minimize/avoid potential “ excess costs ” from KPMG LLP ? Industry leaders define the business requirements that drive IT spending and priorities (., Strategy Council EOL initiatives, etc.) ? Overall goal is to reduce operational cost of IT while improving service levels Page 3 Today ’ s IT Environment Transition Services work Architecture ? 48 months from the IPO date ? Terminated services may result in “ excess costs ”? Cost allocation based on headcount, not services ? Separate TSA in every country ? The US-NSS IS budget is organization not activity based ? Distinction between Core and Non-Core project costs ? Caters to LLP business model with regard to security, access and support ? Federation of works ? Slow to incorporate new technologies ? No international coordination ? LLP (US) has little interest in supporting KCIN ’ s global needs ? Limited opportunity to negotiate services or costs at the CIO level ? mits KCIN to LLP standards, priorities and processes ? International allocations are disproportionate to the value received ? Collaboration with clients and alliance partners is difficult ?