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