IT Carve-Outs Don’t Have to Equal Disruption and Long Timelines
An IT carve-out is often a complicated and crucial process involving the careful separation and transfer of data and IT elements from one company to another. IT carve-outs are very challenging endeavors that require careful planning and testing to maintain stable operations and minimize risk. Projects to carve out IT are not the same as typical system implementations and are intended to simplify the separation from a parent company to avoid business disruption.
New work streams for a carve-out can create added stress factors that impact the usual operations of an organization. IT teams are faced with the task of continued support for the business status quo, while simultaneously subject to a division process. The strategic and efficient separation of IT elements, i.e., services, processes, data, systems, and projects is essential for the success of the parent company and newly created entity.
Establishing an IT Carve-Out Strategy
TSA documents also detail the associated costs as well as terms and conditions of the carve-out project, stating clearly what is and is not included in the separation. The separation of the data and IT systems has to ultimately deliver accuracy and security to ensure by completion that:
- Parent company cannot access the data of the new entity any longer
- New carve-out entity can no longer retrieve the data from its former parent
Fission’s Superior IT Carve-Out Methodology
Often the best first step for successfully navigating a carve-out transaction is to bring in professionals with the experience and expertise to coordinate all of the cycle steps. Without strategic guidance, companies can face heightened risk, excess costs, business disruption, and asset loss. The services of experienced consultants can untangle and streamline the matrix of team components, service contracts and projects, software licenses, data, infrastructure, and system access rights, just to name a few.
Fission specializes in successful IT transitions and transformations. Fission expertly assists all clients with TSA negotiations, IT carve-out planning and execution, and post-separation optimization. Our approach simplifies and streamlines complicated carve-out processes to accelerate the separation timeline and eliminate disruption. We focus on delivering data accuracy and removing uncertainty, to guide our clients throughout the project for an effective TSA exit.
Fission’s six-phase IT carve-out checklist and methodology clarifies and streamlines the work:
Fission communicates with each project team member to understand the magnitude of information that needs to be gathered to properly design the IT carve out project plan. Gathering extensive information upfront in the process leads to an easier separation phase and a predictable working schedule throughout the project.
This phase identifies custom data and all standard and custom data rules. The project plan is detailed and finalized with all resources required and hours allocated for work. The cutover plan is drafted and refined throughout the coming weeks.
Run the Business
Learn more about Fission’s six-phase methodology in greater detail.
Fission’s team of experienced professionals will deliver on the promise of simplified IT carve-outs with reduced project cost and risk, data accuracy, shorter timelines, and measurable TSA savings.
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Preparing for an IT carve-out OR TRANSFORMATION?
Fission was built to support private equity firms and enterprise clients as they work through common — yet critical — IT project challenges.