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. Carveout 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 ITservice provider, sold one of its three service provider divisions, IT Product Services (IPS). This
division employed about 3,500 employees in 20 countries and previously generated 0.7 billion of
DIC’s 3.8 billion euro 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 analyse 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
Fähling, Jens; Leimeister, Jan Marco; Yetton, Philip; and Krcmar, Helmut, "MANAGING AN IT CARVE-OUT AT A MULTI-NATIONAL ENTERPRISE" (2009). ECIS 2009 Proceedings. 140.