Managing an IT Carve-Out at a Multi-National Enterprise Teaching Case Description
Journal of Information Technology Teaching Cases (2013)
6 Pages Posted: 1 Aug 2014
Date Written: 2013
Abstract
Mergers, acquisitions and divestments, including the carve-outs of business units or parts of them, are standard strategies used by multi-divisional organizations to adjust their business portfolios. Carve-out projects are critically dependent on their management of IT. Systems, which have been integrated in order to deliver seamless and efficient IT operations, must now be pulled apart under demanding time and compliance constraints. In 2007, Delta IT Consulting (DIC), one of France’s biggest IT-service provider, sold one of its three service provider divisions, IT Product Services. This division employed about 3500 employees in 20 countries and previously generated 0.7 billion of DIC’s €3.8 billion revenues. DIC itself is a division of Delta Corporation – a French high-tech company and leading player in a wide array of businesses, industries and countries around the world. This teaching case challenges the reader to analyze and manage the IT carve-out as a critical component within the divestment project. The case includes insights into strategic and organizational challenges of planning and managing an IT carve-out project.
Keywords: teaching case; IT carve-out; IT project management; IT management
Suggested Citation: Suggested Citation